Tag: working capital

One of the major aims of the Small Business Administration is to provide access to working capital for qualified new and growing companies. The SBA does not directly lend money to entrepreneurs however. In addition to its SBA loan program, it also offers a venture capital system called the Small Business Investment Company (SBIC.) Here’s what you need to know about this program: The SBIC was established in 1958 by Congress in order to get more financing to growing businesses. It allows […]

Every small business owner looks forward to the day his or her company takes off and has more demand than supply. You might need to pay for more inventory or marketing for gaining new customers, or in other cases you may be ready to buy out the competition or merge with another firm. When that day arrives, it is smart to be prepared with a source of expansion financing – in other words, a way to pay for that quick growth. Here are three things to know to help you know when and how to secure expansion […]

When your business is ready to purchase a property or building, one great option for financing is to use a Small Business Administration 504 loan for your commercial mortgage. This government-backed and funded program provides great loan terms and safe financing. Here’s what you need to know: The 504 Loan program was created in 2012 to provide funding to expanding small businesses. It can be used to finance several types of business growth, including commercial mortgages for the purchase […]

For companies whose products have a high sticker value, being able to offer customers multiple payment options is essential. Accepting credit cards, cash and checks are fairly standard, but there are also other financing choices that could help give your business a competitive edge. One of these is retail financing. Sometimes called customer financing or consumer financing, retail financing provides customers with a short term installment loan for purchases above a certain level. Here’s how […]

You’ve hit a wall in your business growth. You need more working capital. A small business loan can be the safest and cheapest way to obtain the funding your company desperately needs. The requirements can be stringent and the application process can be extensive. Here are 5 ways to be prepared for small business loan success. 1. Prepare to Explain the Reasons for Your Loan In order for a lender to approve your loan proposal they will need to see a convincing reason for the funds. If you are […]

When starting a brand-new business, coming up with all the necessary financing can be a challenge. Most banks will not consider startups for small business loans and without a business credit history it can be difficult to get funding from alternative lenders as well. One option for procuring working capital that startup entrepreneurs can consider is bootstrapping by consulting as a side job. Startups often require money for equipment, retail space, employee salaries, or inventory. Taking on a […]

Building up a good business credit score is more important to obtaining business funding than most entrepreneurs realize. In fact, one of the most frequent reasons that small business loans are denied is because of low personal and business credit scores. After establishing a credit profile with business credit agency Dunn & Bradstreet, small business owners should apply for a business credit card and start using it responsibly to start building a good credit report. These cards can provide […]

A startup company is almost always synonymous with being short on business funding. Getting a business off the ground requires raising money and being efficient with that working capital. Here are a few tips to help you put your limited funds to good use as your business continues to grow. Keep Marketing to a Minimum In today’s digital age, there are so many ways to get your name out there without spending lots of money on traditional marketing. Start with Facebook, Twitter, Instagram and any […]

Trying to navigate the small business loan process can be confusing and exhausting. If your company is looking to find some business funding through a bank or other traditional lender, it helps to be aware of the kinds of paperwork that will be required of you. Here are the six most important pieces of data you should prepare before applying for a small business loan: 1. Personal Credit Score Even though you might not expect a bank to pull your personal credit score when you are applying for […]

Many new businesses go under not because people don’t like their product or service, but because they have problems managing their cash flow. The large amount of working capital they started the month with disappears and no one seems to know where or why. If your company is struggling with keeping positive cash flow, here is the prescription to cure your financial woes. Track Every Cent With so many transactions occurring every month, a tracking system is essential to figuring out what is happening […]