Tag: inventory

The rate of approval for small business loans is typically fairly low, with rates among banks, credit unions and other lenders averaging between 20 and 40 percent. That means that far more entrepreneurs hear the word “no” from lenders than those who hear “yes.” While have a loan application rejected can be disappointing, it is even more frustrating to be rejected without knowing why. Many business owners coming away from being turned down for financing without having any idea why they did […]

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 […]

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, […]

Business is going well and you are receiving orders faster than you can fill them and faster than you can pay for the supplies. Traditional small business loans are often hard to get but you still need to find funding somehow. If this sounds like your situation, you may benefit from a bank line of credit called inventory financing. Inventory financing is a loan that uses your company’s inventory as collateral. This can be a great option for firms who have plenty of cash tied up in their inventory […]

If you feel like your company’s working capital process could use some help, take a look at the following suggestions.