When cash starts to run dry, it’s not uncommon for traffic management companies to investigate financing options — such as loans, credit cards or debtor financing — to help their business stay afloat. Some common reasons traffic management businesses look to alternative financing are to pay staff, purchase or rent equipment or access a quick cash boost.

One top pick amongst SMBs is small business loans — these provide a large lump sum payment and give SMBs quick access to cash. But just like any other loan product, interest rates and fees apply. Depending on the lender you opt for and the interest rate you are given, the repayments can eat massively into your company’s budget.

Another thing to consider when applying for a small business loan is that your business's financial history will be put under a magnifying glass. And with tighter lending restrictions in place, your application could be rejected if a lender isn’t happy with what they see. Not only does this land you back to square one, but you’ll also have a mark on your credit history.

Business credit cards are another common choice amongst SMBs, due to their convenience and larger credit limits. While you may need to pass a credit check before approval, business credit cards tend to have lower interest rates and fees than loans. While this might sound ideal, you could land your business in trouble if you cannot repay the balance each month.

Credit products like these can give SMBs instant financial relief. However, they can also be full of risk and unmanageable expenses. So how can traffic management SMBs safeguard their assets without throwing themselves into financial ruin? Say hello to Marmalade.