Category: Working Capital

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 […]

Writing paper checks is just a routine part of every small business, right? It doesn’t have to be and in today’s high-tech world, it may actually be one of the worst ways to make business payments. There are plenty of obvious and hidden costs associated with check-writing. Many business owners do not even think to examine these costs as they are not aware of any other way to make and track payments. However, researchers have found that each written check can cost a company between $3 and $5, […]

The major credit reporting agencies are being forced this summer to change some of their data collection policies, a move likely to buoy personal credit scores and give small business owners access to more business funding. Because of a 2015 settlement with the New York Attorney General, the three major credit bureaus – Experian, Equifax and TransUnion – are altering some of their policies that will affect the credit scores of millions of Americans. Before the settlement, the big three agencies […]

Small businesses provide the majority of new job creation for our nation and yet pulling together the funding to become a successful, job-generating company can be very challenging. Small business loans are among the most desirable forms of financing a growing firm, but only about 20 percent to 25 percent of small business loan applications are approved on average. If your company is looking to secure some working capital from a traditional lender, here are five ways to put your best foot forward. 1. […]

Starting and growing a small business requires plenty of capital. And yet, without a strong or long business history most lenders are hesitant to loan money to new companies. The result: many fledgling small businesses turn to their credit cards to finance their operations. In fact, the U.S. Small Business Administration reported that 65 percent of small business owners rely on credit cards regularly to provide working capital. The problem with maxing out personal or business credit card to finance […]

When you are in need of some working capital for your business or a round of funding for a new business stage, getting your hands on that cash can be much harder than it should be. It usually takes much more work and perseverance than just going down to your bank and asking for a small business loan. It can be an arduous and exhausting process to track down the right funding. When you do not have either the time or the expertise to do that, you might consider hiring a lending advisor. A lending […]

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 […]

Meeting your small business cash needs can be challenging. When it comes to financing, one of the many options is small business bank loans. Many banks will offer both traditional loans and lines of credit. Each provides different benefits and is better suited for certain types of businesses. Here’s how to figure out which one is right for your company: Traditional Bank Loan A small business loan from a bank will allow you to borrow a specific, fixed amount of money that must be paid back […]

Building up a small business from scratch can be rough on your credit. There are plenty of times when money may not come in fast enough to cover bills and your personal or business credit can suffer. With bad credit, your sources of business funding can seem to dry up quickly and you may have to think outside of the small business loan box. One way many companies with poor credit meet their working capital needs is with invoice factoring. Invoice factoring means selling your unpaid invoices to […]

Small businesses are often in need of substantial capital for one project or another, but small business loans from traditional banks can be difficult to acquire for many firms. There are alternatives that can help companies get the working capital they need, among which are personal loans. Although they carry high fees, there are several situations when they just might save the day. Brand-new Companies It can be very challenging for start-ups to secure funding from banks or other lenders because […]