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July 1, 2017

Where To Get Cash Sources in a Business Downturn

Everybody needs to keep advertising their business to potential clients, regardless of how long they've been operating. Even if you've been profitable for the past four decades, you still face pressure to stay afloat by trying to show people why your products are better than your competitors – and you'll have to compete with new companies constantly. Events and trade shows remain excellent ways to appeal to your target market, but you might struggle to pay for the costs involved.

Unfortunately, no matter how important marketing your company is, you still need to cover your living costs, and if you're going through a tough period, you might assume you can't pay for an event due to a lack of cash. However, there are many ways to secure extra money in times of need, with some being riskier than others. Below, this article details some ways you can obtain extra cash to make your exhibition a success and still have enough money to cover your cost of living.

How to Get Cash

If you only need extra money to fund one event, you might be able to get a small personal loan and pay it back quickly to prevent the interest from spiraling out of control, but you may need to consider other options if you intend to exhibit at a string of high-profile events. Here are some of the methods available to secure extra cash when you need it.

Personal Loan

The first and possibly most convenient way to obtain cash is to get a personal loan, which usually allows you to have extra money in your bank quickly. You can borrow anywhere from a few hundred dollars to thousands with a personal loan, and you can usually come to an agreement on how long it will take to pay it back. If you have a good credit rating, you might be able to get an unsecured loan, which means you don't need to risk any assets should you be unable to meet payments. However, some people have no choice but to get a loan secured against their valuable assets if the borrower thinks the lender is high risk.

Re-Mortgage Your Home

If you need more money than a personal loan provides, such as if you want to book a slot at several events, you could consider refinancing your home and using equity to fund your marketing ambitions. If you purchased your home decades ago, you might well be able to get a significant lump sum of cash using this method, the main drawback being that you'll still have to meet monthly repayments and extend your loan for anywhere between 15 and 30 years. However, you may be able to get more favorable interest rates and repayment options than you currently have, so if you're prepared to keep paying a mortgage for many years, refinancing your home might be an ideal way to get a large sum of money.

Reverse Mortgage

A reverse mortgage is where a lender will give you either a lump sum of cash or monthly installments in return for a portion of your home's equity, and you won't be liable to pay back any money each month. The lender makes its profit when you eventually sell your home or pass away, which means the longer they give you monthly installments – if you choose this payment option – the more equity they'll eventually receive. However, you'll never have to leave your home, and the total amount repayable can never exceed your property's total value. Unfortunately, reverse mortgages are only available to those over the age of 62, and there are lots of criteria you'll need to meet to be eligible. Nevertheless, it's one way you can either secure a lump sum of cash to pay for a string of trade shows or reduce your monthly outgoings by paying off your mortgage. If you want to know more about this type of loan, you should talk to reverse mortgage lending experts.

Deciding What’s Right for You

Most businesses experience financial hardship at some point or another, and though spending cash you don’t have sounds like a bad idea, investing in trade show marketing could turn out to be a worthwhile investment. If you're unsure of which type of loan is best for you, you may want to speak to a financial adviser.

The views and opinions expressed herein are the author's own, and do not necessarily reflect those of EconMatters.

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