Archive: May 2015

When it comes to saving money and freeing up working capital, the Internet can be a small business owner’s best friend. Going online can help with everything from cutting costs to saving time to generating revenue. Here are a few ways your company could more fully take advantage of Internet resources. Sell Online Selling your product or service online can be a great way to start off your business or an excellent way to supplement sales in your retail or other outlets. If you are just getting […]

Whether your business is just starting up or gearing up for a round of venture capital, your ‘burn rate’ is an important number to understand and manage. It can help you determine if you are keeping enough working capital on hand and help you make a plan to compensate for any losses in profit. Burn Rate Defined A burn rate is the rate at which you spend your financial reserves. There are two types of burn rates to pay attention: gross and net. The gross burn rate is the total amount of capital […]

Raising money for small business start-ups is typically one of the most important but also one of the most daunting tasks for entrepreneurs. Bank loans and angel investors are often sought-after forms of business funding, but the rates of rejection can be really high. For example, in November 2014, Biz2Credit reported that big banks only approved 20.8 percent of all the small business applications it received. That means almost 80 percent were turned down! If you have been among that 80 percent […]

Your start-up or newer small business needs cash to get off the ground. Attracting the capital you require is no easy feat. Among the many sources you can try are angel investors – individuals who invest in fledgling companies, bringing funding and expertise. In order to score a partnership with an angel, entrepreneurs need to know what these investors are looking for. Good Recommendations Angel investors are often most interested in businesses recommended to them by friends or colleagues. […]

Your small business is doing well – you have enough cash on hand to cover expenses, sales are increasing. Getting a small business loan may be the last thing on your mind. But this might actually be the perfect time to apply for one. It is an unfortunate and paradoxical fact that loans are easier to obtain when a firm is doing well financial than when it is struggling. So if you have found yourself in a commercial sweet spot for the moment, here are a few reasons you might want to take advantage […]

Mortgage interest rates have been at or near record lows for the past several years, but experts are predicting that rates will see definite increases this year. As mortgage rates rise, other rates, like those on small business loans, often rise as well. A jump in rates can affect both current small business loans and potential ones. As rates rise, the amount of risk a bank faces can often increase. Most banks and lenders actually borrow money from other bigger institutions in order to lend to […]

Finding funding for a small business startup can be a difficult challenge. And if your personal credit score is less-than-perfect that process can seem even more grueling. It is definitely not impossible though. The path to funding might have to be a little more creative, but the following tips can help your business overcome your past credit foibles. 1. Borrow From Friends and Family While it may be uncomfortable, family and friends are often the best place to start for small business financing. […]

Getting past the start-up phase in any small business is a major accomplishment. But it is no time for resting on one’s laurels either. Expanding an established business means finding another round of funding. Where is the best place to find expansion financing? It may surprise you to know that the majority of small businesses use their personal assets or obtain extra funding from family members. According to the 2007 Survey of Business Owners (SBO), 51.2 percent of small employers kept financing […]

Paying for business equipment upfront is often too much for many small firms to handle. Yet almost every small business needs equipment, whether its computers, machinery or even an office space. Leasing is one way for companies to get the equipment they need without the hug initial outlay of cash required for purchase. And it’s a popular choice too. The Equipment Leasing and Finance Association reports that four of five businesses lease at least some of their firm’s equipment. Leasing essentially […]

Banks and lenders look for a specific mix of factors when considering small business loan applicants. One of the most important aspects of an entrepreneur’s loan request is how much capital he or she has to contribute to the business. It is called putting ‘skin in the game.’ Lenders want to see that the owner is so passionate about the new company that he or she is willing to put personal funds to ensure its success. This idea of supplying part of the funds from one’s own pockets is also […]