Very few businesses have the luxury of having substantial bank balances that allow them to trade on their own finance.
... to finance their working capital. This requirement is generally caused by the financing of work in progress, a build up of stock and also credit terms that have been supplied to customers in order to win business.
We all recognise that cash flow is fundamental to any business, and without it failure can ensue. These days banks rarely offer traditional overdraft facilities unless these are secured, generally by directors' guarantees and security of the company assets.
There are effective ways of obtaining cash flow finance if you look in the right places. This may not always be the bank. For example invoice funding can be a very effective way of releasing cash to a business potentially without the need for personal security.