If your small business is drowning in high cost debt, you might be having a hard time paying your employees, purchasing inventory, or keeping up with other operational expenses. Exorbitantly high interest rates could be preventing you from having the funds your business needs on a monthly basis. If you want to put cash back into your bank account, here are three big benefits of refinancing your loans.
Financial tools and management
Businessmen often have good ideas and clear image of the turning them into the reality. Unfortunately, like all good things in life, these need solid ground and specifically rather big amount of money. It requires thorough business plan and hours of visits from one potential investor to another amid hopes someone will be interested enough to invest. And there is no guarantee this strategy will work out. After years of the futile attempts, disappointment still has a chance to weigh down the balance.
Getting a business loan isn’t easy, with banks having significantly tightened their criteria since 2008. Of course, your business could be in the lower-risk category, so you’ll strike lucky, or you might secure finance from an alternative lender applying different criteria. But having obtained the business loan you need, there are still several pitfalls you can encounter. Or to put it another way: how should you not spend your business loan?
Business credit scores are one of the key factors determining whether or not an enterprise qualifies for a loan. Yet surprisingly enough, most businesses don’t even know what their scores are. This astonishing revelation has come from a new survey by Manta, an online community for small business owners.
Conventional wisdom says not to finance your business with a credit card. But times are changing, and credit cards have become a useful part of launching a startup business. In fact, credit cards are ranked as the third most popular source of cash for small businesses, right after bank loans and the business’s revenue itself.
So how can you make sure to use credit cards the right way to finance your business?
The economy’s continued expansion could have you, like many business owners, optimistic about your company’s growth prospects for this year and going forward.
Here are five things for business owners to know about getting a bank loan or credit union loan in 2016:
From startup and everyday operating costs to growth and expansion costs, cash is the lifeblood of a business. Large corporate organizations and small business alike are required to make decisions about where and when to spend (or not to spend) money. To do this, it’s imperative that you monitor what is commonly referred to as “cash flow.”