Certain businesses function under the economic parachute of being “recession proof.” Meaning, no matter what the future holds, these businesses can count on job security because they provide a service that is always in-demand. Don’t let the distinction or supposed security fool you. Sometimes even the “recession proof” among us need a little capital infusion.

Heating & Cooling: Unsecured Conversion in Action

HVAC systems seem to always need repair - maintenance or replacement. While this is good news for the industry itself, these big ticket items tend to freeze up a lot of cash. Why? The money gets tied up in assets, not liquidity.

The idea behind this strategy is to secure your profitability. If you are in a specialized field, like HVAC supply, there’s a lot of financial management at play. You have to leverage your short-term debt against your long-term sustainability. Sandwiched between these two financial realities are the day-to-day responsibilities of:

• Managing inventories
• Accounts receivable
• Payroll
• Operational expenses
• Cash flow

This is what’s known as operating capital. The money you have on-hand to handle the unexpected, so that your day to day business can continue.

Feeling the Pinch

When you look at the cash flow picture that way, it’s easy to see why even recession-proof businesses can benefit from unsecured business lines of credit.

Not even one year ago, HVAC businesses in Flanders, NJ were rocked by Superstorm Sandy. They couldn’t wait for their assets to convert to an emergency revenue surplus. Luckily, Advance Funds Network (AFN) was available to help.

Our lending company was able to offer distressed business owners $25,000 for operating capital through unsecured business lines of credit. These funds kept businesses going while they waited for aid and the cash flow needed to rebuild.

When they heard that one NJ business was in trouble, they helped the business owner apply for a business line of credit and then asked the owner if there were other businesses in the area that needed help. Working with a freshly supplied lead, they were able to help numerous businesses gain quick access to unsecured funding. How quick? A business that submitted their application on Thursday got $25,000 of funding by the following Monday.

That’s the kind of work AFN does every day. The way we see it is it shouldn’t take a natural disaster for businesses to get the help they need. Our company shows the same amount of dedication with every client, every time. These funds are: fast, collateral-free, unrestricted and re-usable.

Even if you’re not struggling with operating capital, you can use these funds as needed to get your business out of a financial bind. Do the smart thing. Contact AFN via our live chat feature and get more information about how unsecured business lines of credit can help your business succeed.