Archive: February 2015

One potential way to finance your small business’ growth is to connect with a venture capitalist, someone who can not only provide working capital for the company but also business advice and expertise. While having interested investors can be exciting, it is important to only partner with the right venture capitalist. Most investors will want to know about your business plan, your projections for growth, your profits and margins. But the right investor will also want to dig deeper. Here’s what […]

Small business owners are more optimistic about obtaining funding these days. In The Hartford’s 2014 Small Business Success Study, 46 percent believe that it is either “only slightly or not at all difficult” to secure a loan or other financing for their company, a 39 percent jump from just two years earlier. Yet even though more entrepreneurs feel it is easy enough to get funding, more (36 percent) are choosing to use their own personal funds to keep their firms going. Younger business operators […]

Having the necessary cash on hand for day-to-day operations is key to the success of any small business. It can be a fine balance to keep enough working capital in between the time you pay suppliers and the time you are paid by your customers. Here are a few ways to make sure your business has the cash flow it needs to run smoothly. Detailed Forecasting Managing your working capital starts with having an accurate picture of your cash flow requirements. It is important to take into account the […]

Small businesses, especially start-ups, often suffer from gaps in their working capital. Brand-new companies often do not have the cash to stay afloat between buying inventory and collecting on their first cycles of accounts receivable. Business lines of credit can be a helpful way to cover that shortfall in the short-term. A line of credit is a loan that works similar to a credit card – the bank sets a limit for the borrower and the entrepreneur can borrow up to that limit during a specified […]

When it comes to growing or sustaining your business, outside help is often needed to provide the required cash. Traditional lenders offer two helpful products for business owners: business loans and business lines of credit. Each has its own distinct merits for developing companies. Here’s what you need to know about them before making a decision: Loan Payout With business loans, a borrower receives one lump sum of money at the outset of the loan and will never receive more for the duration […]