Will bad credit stop my business growth?
3 Key Strategies to Boost Your Growth

higher liquidity
Your liquidity (how much liquid assets your business possesses) will directly affect how much capital you can invest into your growth without worrying about your ability to survive the slow season. Additionally, should you need to secure additional financing to boost your growth, strong liquidity will improve your approval chances. Here are several ideas to help you improve your business liquidity:
  • Upselling. Don’t overlook the revenue potential from selling your ancillary products. At first they might only provide a small boost to your revenue but consistent 5% to 10% boost to your sales per month will have a long run effect on your bottom line.
  • Faster Collections. A high amount of receivables will become deadweight if your collection system is lax. Especially if you are operating in the B2B market. To avoid it, provide an incentive for your customers to pay early such as a 5% discount for current invoice, or free shipping for future sales.
  • Better Inventory Management. Just like receivables, having a high amount of inventory without being able to move them quickly will slow down your growth. There are two ways to handle this situation:
    1. Forescast your inventory needs While it is near impossible to predict how much you’ll need, adding an extra 10%-15% above your minimum amount should provide you a good starting place.
    2. Remove as much old inventory as possible even if that means taking some losses. It’s better than watching your inventory become obsolete.
  • Sell off useless assets. Majority of your businesses have enough capital to invest into their growth but are tied up in unporductive assets. Any assets that that cannot be turned into cash quickly or does not help you generate revenue.
While the assumption that early or on-time payments to your vendors will improve your credit score. that is only half of the truth. It only works IF your vendors report it to the business credit bureaus. The good news, vendors are more willing to report when you are consistent with your on-time payments. Secondly, majority of vendors provide a discount for on-time payments. Allowing you to improve your credit score and save money at the same time.
In the same manner, early repayments to your creditors can result in discounts as well as credit score improvement. Majority of lenders prefer to work with businesses that can show they have the ability to meet their repayment obligations. Giving them higher willingness to provide you with a better rates or discounts.
How does this fuel growth? It builds your reputation with your vendors and creditors. Giving you the necessary tools to secure future financing and protect your credit.
financing your growth
In finding the right growth capital, aim for sources that will not put additional burden on your finances as well as providing you with flexibility. Majority of your lenders will levy higher rates and/or require collateral but there are capital sources that you can tap into without having to carry the additional burden.
Made for B2B businesses, this is the best option to remove your unpaid invoices and save the time needed to collect them. You can receive up to the full amount of your invoice within the same day and the amount you get grows in line with your revenue. However, do your research, as some lenders might require a minimum monthly revenue.
This is your growth safety net by providing you with a capital pool that you can dip into without worrying about getting drowned in debt. You only need to repay the amount you used and tends to be one of the most affordable financing options. It is, however, still a loan that you need to repay when used thus, we advise you to have a steady revenue stream for at least 3 months before you apply.
A better option than traditional lenders, alternative lending providers like our partners at Fundbox, Bluevine, or Kabbage, to name a few, often work with businesses with less than perfect credit score in providing the right financing relevant to their needs and challenges. With these lenders, you choose the best option, terms, and rates rates using one platform.
That's it
The two main components of growth are: plan and patience. These strategies will not give you an overnight makeover but can change the future of your business. Establish a viable plan and make the necessary changes along the way but have the patience to see it through. Let us know which of these strategies would change your business.

PRO TIP: Just with any goal, consider dividing your growth target into mini targets to make it more manageable. Smaller increments on a weekly or monthly basis provide a better indication that your strategy is effective.