Many business owners seem to lose site of the importance of working capital for the health of their growing business. They become so involved with daily operations that many times they wait far too long to address this issue – and then there’s a crisis.
It takes hard work, long hours and an exhausting commitment to be successful in business these days. If the business continues to struggle on a monthly basis from a lack of capital to fund receivables, payroll, or the purchase of a hard asset (i.e. equipment) that will produce higher efficiency and generate more revenue quickly for the business, then the STRESS level multiplies a hundred-fold.
Sales pipelines and forecasting can fall by the wayside rather quickly if you’re not well prepared. Unfortunately, this seems to be the norm for many business owners. It’s important for business owners to know and understand their personal credit scores and what percentage of their revolving credit they have utilized, as these statistics are often used in calculating personal loan approvals.
People ask us all the time, “What type of loan can I obtain? What are the rates and how long do I have to pay the loan back? What do you charge?”
We do not charge for any consultation, since we will discuss all funding options. There are many funding options in the marketplace and whatever the loan request may be, much of it depends on what the business and the business owner bring to the table, and what they qualify for at the time. Rates are never quoted as the loan request must be fully underwritten prior to conveying any type rate or term to the client.
Working Capital = Receivables + Inventory + Other Current Assets - Accounts Payable – Other Current Liabilities.
Often, business owners can’t fund the growth of their business; hence, the need for some type of working capital funding. There will be times when a business owner needs to accept a non-traditional type of funding in order to obtain better funding in a 12-18-month time frame. Many times, the loan you didn’t accept may have been the best choice to move you in the proper direction to acquire the better funding solution in the future.
What Can We Do to Assist?
In addition to acquiring funding for the proposed loan request, we provide strategic planning and business counseling that is very helpful in building a trusting relationship. We are always looking forward in order to see how we can be the most helpful to our clients. We provide excellent resources which build and enhance credit scores, reduce personal leverage, and increase profitability. We are pleased to announce we have several clients that have returned for future funding options.
Why try to go it alone? Let us cut through the red tape while you continue to focus on your business. We look forward to serving you now and in the future!