Category: Working Capital

In order to devise a solution it is essential to understand the difference between four key business finance terms

For businesses that sells good or services to other, invoice factoring can be a way to keep working capital flowing more consistently

As your small business grows, you may find it necessary to have employees make purchases for the company. Cash and business checks are possibilities, but both have limits and liabilities. Business credit cards can offer at least 3 great benefits: 1. Tracking Purchases is Simpler With business credit cards, all purchases are easy to track. You can simply go online to see complete records of every transaction. When using cash and reimbursements, it can easier for employees to fudge the numbers […]

In the course of trying to raise money for your business needs, you have the choice of seeking dilutive or non-dilutive financing. Each has a role to play, but it is important to time them right to make the most of your ownership. Dilutive financing is any type of capital received by your company that diminishes your ownership. This includes deals with angel investors and venture capitalists when you give up a portion of your equity to gain their cash. It also includes any public or private rounds […]

There are a plethora of online business loans available today. Most of these are short-term loans, similar to cash-advance loans. They can charge extremely high interest rates, but typically require little in the way of background or credit checks. This can be especially attractive to small business owners without a long business history or who are in a cash crunch. Even still, entrepreneurs should be careful before jumping into a short-term online loan. Here are 3 concepts to consider before signing […]

Finding ways to continually please your customers and increase your profits are at the heart of most businesses. Creating more working capital and beefing up business funding are also high on the priority list. One strategy to boost sales and revenue many companies overlook is the art of ‘up-selling’ and its sister ‘cross-selling.’ Up-selling means asking a customer to buy something more or better than they originally intended to (think: you planned to buy a condo but your agent convinced […]

Growing a business takes hard work, patience and usually a lot of cash. Small business loans can be one way to access the kind of working capital you need. Taking on debt for your business can be a little scary, but there are some times when the benefits can really outweigh the risks. Consider the following three reasons why it might be time to get a small business loan. 1. You Need to Hire New Employees If your company is growing fast enough that you need more help but don’t have the cash […]

When starting a business, entrepreneurs will generally look anywhere and everywhere for funding. Families and friends get tapped, credit cards are maxed out. Traditional small business loans can be difficult for newcomers to secure. Plus the idea of having to pledge their own assets like their houses or cars is a scary thought for many new business owners. At this point, many entrepreneurs turn to unsecured business loans for financing help. An unsecured business loan is one that does not require […]

Most businesses experience times when they desperately need some cash to bridge a gap in funding. This could be during a period when capital has gone out to inventory or filling new orders but accounts receivable have not yet been collected from big accounts. It could also be during a seasonal low. Whatever the reason, among the few financing options available to businesses, a second lien loan may be the right choice. A second lien loan is a secured loan, tied to one of the company’s assets, […]

Asset-based loans have traditionally been considered last-ditch financing options for business owners. Yet in today’s changing financial climate, there may be some circumstances when asset-based loans can provide great benefits. What is an Asset-Based Loan? An asset-based loan is business financing that is secured with the company’s assets. These can be collateral in the form of tangibles like machinery and equipment or inventory, but it can also include accounts receivable or securities. […]