In uncertain economic times, credit gets tight—and many business owners find themselves cash poor. But where can you find fast, available funds to see you through this lean period?

SCORE has some intriguing suggestions. Billing itself as “Counselors to America’s Small Business,” SCORE is a not-for-profit organization staffed by working and retired executives and business owners who donate time and expertise as business counselors. Providing free advice and resources, SCORE is a resource partner with the U.S. Small Business Administration (SBA).

So… show me the money!

1.     

Gift cards: You don’t have to be a multinational corporation to offer gift cards. Even the smallest local eatery, gift shop, etc. can offer gift cards. Known in economic parlance as prepayments, gift cards are a painless way to bring in cash up front. They’re like a no-interest loan from your existing customers – and can yield new customers, too.

2.     

Collections: Get what’s already owed you. If aggressive debt collection is not your thing, consider hiring a temporary employee with this expertise. Encourage payment plans. Any payment is better than no payment – and if your clients stick to their plans, you’ll be better able to project future receivables.

3.     

Factoring: A factor buys your outstanding accounts, gives you a percentage of what’s due you – then tries to collect the full amount for the factor. You get cash immediately, but it won’t be nearly as much as you’d collect yourself. Factors are only interested in your long-standing customers with good payment records.

4.     

Slow Your Payments. Follow your own advice and make payment plans with your own creditors. In this market, lenders, vendors and even credit card companies may be receptive to an extended repayment term. Just be clear about interest and fees so you can weigh the true cost of this option for your business.

5.     

Borrow From Yourself. Check the cash advance limits on your credit cards. Consider liquidating excess inventory or unused equipment But just like any other loan, have a repayment plan – and stick to it.

Paula Damiano is the Editor – NAFE News & Notes and nafe.com