Tag: business financing

Small Business Administration (SBA) loans – or 7(a) loans, are often a coveted prize for U.S. companies. They offer some of the lowest rates anywhere on small business financing and generally provide the longest repayment terms as well. The loans are guaranteed by the U.S. government so businesses can feel confident in the security of their funding. These loans sound ideal and yet many business owners won’t even consider applying for them. Why? The application process for SBA loans is notoriously […]

If you have a new business with a mission to help your fellow human beings, registering as a non-profit organization could be a great way to get started. It can be a great way to get business funding from individuals and corporations and sometimes even the government. Yet there are several important things to understand before choosing that designation. Consider the following: You May Have to Relinquish Total Control Most non-profit organizations are run by shared leadership, usually by a board […]

People have great ideas for new businesses all the time. And yet only a tiny portion of those people ever make the transformation into entrepreneurs. What is the main deterrent? Business funding. Creating a start-up business can often require a significant amount of upfront cash. It can be difficult to find investors for a business that is only in the idea phase, and banks especially do not like to take on such risk. While friends and family can be a good source of business financing, potential entrepreneurs […]

Small businesses are often in need of funding for everything from new equipment and inventory to real estate space to hiring new employees. The traditional sources of business financing include bank loans, venture capitalists, friends and family and just plain boot-strapping. Some entrepreneurs also turn to their credit cards or short-term online loans to fill their working capital gaps. There may be yet another option that while rarely used can be sometimes fit the bill – inviting employees to […]

A successful investment campaign for your growing company will include pitching your firm to the right investors or lenders. And part of convincing those people to invest their cash in your company is presenting them with a succinct and promising business plan. The first two parts of this article discussed the income statement and balance sheet, and this last part goes over the importance of the cash flow statement. A cash flow statement tracks how your company generates and uses cash during a […]

Writing up an effective business plan to attract investors or lenders includes at least three essential items. Part I described the ins and outs of an income statement. This article defines the necessary elements of the balance sheet and Part III outlines the importance of the Cash Flow statement. Putting together a well-polished set of financial statements may be the key to securing the business financing you need. A balance sheet is a measure of how much your business is worth. It can be created […]

The beginning stages of building a business from the ground up can be very challenging, to say the least. Time and money are at the top of most entrepreneurs’ wish lists. Yet even once your business is up and running, there are still hurdles to jump over. Here are three important challenges on the horizon to look out for. 1. Managing Money Effectively As soon as cash starts coming in, there needs to be a money management strategy in place. Business founders need to have defined boundaries between […]

Starting up your own company can be exciting and full of adventure, but it can also come with big risks. Sometimes buying a young company can be even more exciting because your get the benefits of an existing operation with fewer of the startup financial risks. Even purchasing an existing company typically takes financing from banks or other lenders though. Those lenders will want to know why the business is worth the amount of money you are paying for it. While the actual value of a business […]

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 […]

Having a stellar idea for a product or service is the first key ingredient to building a successful business. Putting sound financial strategies into place is possibly the next key piece to making sure your company thrives. Without a financial plan of how to manage business expenses and earnings, there is a good chance that soon there will be no money left to manage. Here are three of the most important rules for putting your business finances on a safe and secure path. Bootstrapping Often Beats […]