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by Tulane Public Relations

Reuters at the business conference


Image by jaimelondonboy
Taken on Friday 30th September 2005.

The usual political example of “mixed signals” is depicted by conflicting statements made by politicians in different settings, but the use of “mixed signals” is no longer restricted to the world of politics. As banks become more connected with politics, it should come as no surprise that “mixed signals” is now as accurate in describing the financial world as it is with the political world. Unfortunately for small business financing, “mixed signals” has become a regular description that applies to business loans and working capital.

As a descriptive phrase, “mixed signals” most frequently includes references to confusion and variation as well as deception. Particularly in a competitive business world where the mere appearance of confusion or deception can be devastating, this phrase is routinely intended to be critical and negative. With this viewpoint, it is striking to see how often “mixed signals” or similar words have been used to describe current banking activities (based on a recent online search). The use of “mixed signals” seems to be appropriate and accurate (especially when viewed through the lens of commercial borrowers and business owners) because the words and actions of many banks are currently at odds with each other.

Commercial credit lines have been increasingly reduced or revoked entirely and fewer commercial mortgages are being completed in most locations even though lenders have indicated that business lending is proceeding at a normal pace. A direct result of this is confusion among business owners about the true availability of business financing and commercial real estate financing. Due to mixed signals as well as other factors, many commercial borrowers are now reluctantly admitting that banks are just not what they used to be. In a way similar to many automobile manufacturers that are now a tarnished and shriveled version of what they once were, it seems like almost overnight most banks have lost the confidence of the public. With such changes, small business owners are facing a new commercial loan environment and must adapt quickly. Because their business banker is not as likely to be up to the task anymore, small business owners should not hesitate to admit that they must look out for their own best interests.

The analysis here is intended to be a candid and practical evaluation of a situation currently faced by many small business owners. When unwinding a long-term relationship with a bank or banker, some of the same trauma that occurs when any positive relationship suddenly goes sour is likely to be present. Parties are likely to move forward after doing the best that they can. When making decisions involving potential changes, a small business owner considering whether to fire their banker should analyze the likely consequences if no changes are made. If keeping the old bank is holding their business back, either by bad advice or inadequate business financing, most business owners will conclude that they should seek a new bank.

There appears to be an adequate supply of new small business finance sources to fill the void left by the exit of many banks and other lenders from commercial lending despite the confusing and complicated lending climate for small businesses. Having a reliable and effective business loan provider to consistently support the operational requirements of their business is what matters to most business owners after all is said and done. Several outcomes can be produced by small business loan confusion. Individual circumstances will cause final decisions to vary for commercial borrowers effected by mixed lending signals. One of the most difficult issues to be considered in the process of small business finance decision-making is the feasibility of finding a new working capital financing or business financing source.

Business borrowers should be prepared to take a more personal and active role in the commercial finance needs of their business in order to increase the chances of their business surviving despite mixed signals from commercial lenders. There are a number of business financing resources which will describe specific commercial finance issues in more detail for small business owners seeking to learn more about any mixed signals they are experiencing with business loans.

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by Hubert Burda Media

Dow Jones at the business conference


Image by jaimelondonboy
Taken on Friday 30th September 2005.

Business owners should not lose sight of their immediate objective when seeking small business financing expert help. Ensuring that all practical and effective commercial finance options are fully reviewed is ultimately the primary purpose in using a working capital expert or other commercial loan specialist. Receiving candid and thorough advice before finalizing any small business loan agreements is essential for all commercial borrowers.

Finding an experienced and qualified commercial loan expert will have some potential pitfalls that should be anticipated. Qualifications to act in the capacity of a small business loan expert are exhibited by very few individuals or companies. Problem-finding and problem-solving are both essential components of an individual being asked to provide advanced help which can be used to formulate effective business financing options. An adequate stock of these skills that are so critical to the success of a working capital expert are generally scarce commodities in any field, but commercial financing in particular seems to be suffering from an ongoing shortage of these positive traits.

When it comes to running their own business, most small business owners probably have a very independent perspective. It is normal for most small businesses to postpone seeking outside consulting help even when facing a business loan rejection by their banker. Many previous business finance options are no longer available from traditional banks, and this might not yet be obvious to some small business owners. Realizing that they have a commercial finance problem requiring outside advanced consulting help will often be an appropriate starting point for a business borrower to seek a small business finance expert. For most this realization will occur when they do not know what to do next after being turned down for a commercial loan by their current bank. Some business owners might have already had this experience and then unsuccessfully tried to find new financing. The last straw that prompts a call for commercial finance expert assistance in a growing number of cases will be the decision by many banks to permanently stop making commercial loans to small businesses.

There is an ample supply of former residential mortgage consultants that have attempted to add small business loans to their line of products but have virtually no meaningful experience involving complicated commercial mortgages. Small business financing is more complicated than realized by many borrowers. It is appropriate to seek a qualified individual who is engaged in it as a full-time occupation and not a part-time venture because it usually takes at least several years to master the field. Finding a suitable full-time business finance expert in an established commercial financing business with extensive experience should be emphasized when building upon this observation. It will also be prudent to avoid a current banking relationship when seeking advice about who to contact as prospective business financing experts. This will eliminate potential conflicts of interest and also properly reflect that a bank which has already been less than helpful in making needed loans will not necessarily have a trustworthy recommendation.

Small business owners are currently confronting what appears to be the worst commercial banking climate in several decades. Advanced help is usually a good idea when faced with complex problems, and the use of a small business financing expert is a prudent step for commercial borrowers to take in view of continuing business lending difficulties.

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by Birmingham City University

Business conference in Westminster


Image by jaimelondonboy
Taken on Friday 30th September 2005.

Bad and poor credit gasoline and gas station business financing and loans, without credit checks, are available with easy qualify working capital financing up to ,000. This gives the established gas station small business with bad or poor credit a great opportunity to obtain working capital financing for their business without a personal credit check.  This no credit check gas station business loan and financing program isn’t a merchant cash advance or merchant loan. Additionally, it isn’t related to the payday loan program.

This no credit check bad and poor credit gasoline station  business loan program is constructed in the following manner. The small business applicant should follow the below guidelines:

1)   Maintain at least a ,000 ending gas station bank balance in their business account

2)       Deposit at least 10-15 times per month in their business account

3)       Be in business at least one year and establish the ability to repay back the loan

4)       Have no outstanding  large tax liens, delinquent child support issues, not currently in bankruptcy or foreclosure

            Documentation Requirements

1)   Signed and dated application

2)       Provide a copy of the detailed business gas station bank statements for the last four months 

3)       Copy of the Owners Drivers Licenses

4)       A copy of the Articles of Incorporation if Applicable

5)       Copy of a business license, tax id number or any other relevant license

The lender will advance up to 2.5 x the average ending balance on the gas station business bank account for the last four months up to ,000. These are business loans and the length of the loan is four months which can be renewed. The loan can replace a merchant cash advance if it doesn’t exceed 40% of the eligible borrowing base. At funding, the lender will pay off the merchant cash advance or loan and pay you the difference.

Example, your monthly average ending balance in your    gas station business bank account is ,000 for four months. Your borrowing base would be ,000 x 2.5 or ,000. If your current cash merchant advance is ,000, the lender at funding would payoff the merchant first and remit to you the difference for ,000. Obviously if you didn’t have an outstanding merchant cash advance, this area wouldn’t apply.

The types of businesses that would be great for this type of bad and/or poor credit loan and financing program would be the following:

 Gasoline and gas stations, grocery, convenience,  restaurants, bars, discos, tanning salons, pizza shops, dry cleaners, doctors, dentists, physicians,  lawyers, accountants, Cpas, limousine owners, automobile service centers and  body repair shops, dog groomers, florists, beauty and nail shops, distributors,  all different types of service providers.

In conclusion for the bad and/or poor credit gas station business applicant, this is a great opportunity to obtain short term  small business loan financing in this tough economy. This isn’t a merchant cash advance or loan program which can be quite tedious in its paperwork and processor work requirements. This great business loan and financing program isn’t credit driven, therefore your Fico Score isn’t an issue.. These small business loans can be renewed every four months if needed by the applicant and gives the business a working capital injection.

 Happy hunting for your bad and/or poor credit small business gasoline and/or gas station loan and its related working capital financing

posted by Admin on

by Birmingham City University

Business conference in Westminster


Image by jaimelondonboy
Taken on Friday 30th September 2005.

A business finance website allows business owners to access information regarding company finances. These websites are very helpful to start-up and existing businesses alike. For the start-up owner, these websites offer information on how to raise capital through various resources and how to prepare the business for operation. Existing business owners can access information on how to improve their profitability and how to apply for additional working capital.

Most loan providers also include a business finance section on their websites to allow individuals to research the different loans offered by the lender. This way, these owners can find the loan best suited to their needs in regards to the loan requirements, interest rates, and repayment plan. Business owners can also find out if they qualify for special needs loans, like international trade and employee trusts. These lenders may also offer advice on how to effectively manage business finances to improve a business’s profitability.

Business owners can familiarize themselves with accounting and financial terms via a business finance website. These websites want to make sure that business owners understand the accounting and financial procedures used in businesses in order to make them more successful. Business owners can learn about the business regulations and laws from a business finance website. This way, start-up owners can find out if they meet all business standards required of their business. Without this information, business owners risk wasting valuable time and money. Most business owners rely on finance websites to supply the vital information needed to successfully operate a company.

Small business finance software, also known as accounting or financial software, are computer programs designed to ease the management of accounting processes in a business. These programs are preferred over the manual way of accounting because software allows an individual to easily input, edit, and handle the information needed for accounting practices while avoiding common bookkeeping errors. Most small business finance software is provided by an outside company that specializes in accounting software, but some businesses choose to develop their own financial programs.

One of the most popular brands of business finance small software is Quicken. Besides offering software for accounting, Quicken also has programs to aid businesses with contracts, checks, credit cards, and supplies. A business can pay a low monthly fee or a one-time fee that gives them unlimited access to specific software.

Other software companies, such as Microsoft, specialize in financial programs for small businesses, and may even provide free trials for their products. Companies may even offer advanced customization for financial software and programs to help compile business plans and financial forecasts.

Because the software industry continually grows and develops advanced financial solutions for small businesses, new versions of small business finance software becomes available every year. The key to determining which program is the most beneficial, it is vital to research the capabilities, services, and prices offered by specific financial software.

Before a women applies for grants when starting a business, be sure to check state or local certification requirements and be aware that women-owned businesses might be eligible for a disabled business enterprise. Understand the certification process women may have to go through to start a new business with tips from acertified public accountant in this free video on new business financing. Expert: Amber Hill Bio: Amber Hill is a certified public accountant and a partner in several small businesses that she started from the ground up. Filmmaker: Carlye Jones
Video Rating: 4 / 5

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by Hubert Burda Media

MEPs want banks/EU Institutions to help small businesses find finance


Image by European Parliament
Banks and EU programmes should provide more support for small and medium sized enterprises (SMEs) according to a resolution backed by MEPs Wednesday. The cross-party motion identifies problems in accessing finance as one of the most pressing facing Europe’s businesses with less than 250 employees. Across the European Union it is estimated that over 100 million people are employed in such companies. We spoke to some of the MEPs behind the motion.

www.europarl.europa.eu/news/public/focus_page/008-113233-…

© European Union 2011 PE-EP/Pietro Naj-Oleari

A business finance source is a way a business can obtain funding, either for start-up or operating expenses. There are many different types of sources, including sales, loans, and investors. Each has different terms, benefits, and disadvantages. Business owners tend to use two or more different sources in order to fund their business.

Business finance sources fall into two main categories: internal and external funding. Internal funding comes from the profits made by the business by sale of products or assets. External funding comes from lenders and investors. The most common external finance sources are loans. Short and long-term loans require borrowers to repay funds at an interest rate for a set period of time. Overdraft loans allow a borrower to spend a certain amount of money, and the lender charges interest on the overdraft amount. Debentures are loans that let business owners pay off all loaned funds at a specified time at a set interest rate.

Before deciding which method is best for a company, business owners should consider a variety of factors. The cost of the business finance source usually is the most important factor considered. Owners look at the interest rates and payment plans to determine the profitability of obtaining a certain funding source.  Businesses that have a history financial stability may want to consider an internal source of revenue before opting for an external source. It’s also important to determine how long the business will need additional funding. A short-term loan would be best for projects that would only take a short time to complete.

Business finance start-up generally refers to the cost to start a new business. It includes determining, calculating, and obtaining start-up costs, as well as managing those finances effectively to ensure the profitability of a new business.

The first steps to business finance start-up are to determine and estimate the amount of funds needed to open a business. These start-up expenses may include one-time fees, such as permits and licenses needed to operate the business. Initial costs may also include ongoing fees, such as rent and utility payments. Business owners usually only include the necessary expenses when determining the total cost to start-up. In order to estimate the amount of funds needed for the business, owners should set up worksheets that list each expense and how much it costs.

Once a business owner has an idea of how much it will cost to start a business, he or she can research the different business finance start-up options available. Most start-up funding comes from loans, which are provided by banks, the Small Business Administration, and other financial companies. These loans are usually based on debt financing and vary in amount of funding, interest rates, and terms of repayment.  Family, friends, investors, or venture capitalists can also provide start-up financing based on equity. Federal grants are an additional option for non-profit businesses. Unlike most financing, grants do not have to be repaid, but they usually have strict requirements in order to obtain these funds.

Among the many places to find information on small government grants, some include the Small Business Administration Web site and other US Web sites. Locate places to find small business grants through search engines with ideas from acertified public accountant in this free video on new business financing. Expert: Amber Hill Bio: Amber Hill is a certified public accountant and a partner in several small businesses that she started from the ground up. Filmmaker: Carlye Jones
Video Rating: 4 / 5

Related Business Financing Articles

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by [ Mooi ]

Department of Accountancy and Finance awards ceremony


Image by Birmingham City University
A student from Birmingham City Business School receives a Department of Accountancy and Finance prize at the awards ceremony held on 20/3/09

For more information see the Birmingham City Business School homepage at www.bcu.ac.uk/business-school

As a start up or a small business owner may soon find out, funds may not always be around, even if the business is making money. When dealing with customers who purchase bulk orders and large stock, it may be necessary to have them pay via invoice to keep their business, which can take up to 90 days to liquidate. The most basic business finance solution would be to apply for a bank loan, but in today’s unstable economy, who knows what the chances are of actually getting one. There are other business finance options available, but most of them involve collateral that one may not have, as well as a high degree of risk. The business finance option that is slowly becoming more popular among small businesses is that of invoice financing. This business finance option has many perks for the small business owner. Below we touch on some of them.

1. Invoice financing gives the business owner a reduced risk through management of the debtor concentration risk- what do we mean by this? In an ordinary bank loan, the bank will require some kind of assurance that you can actually pay back the loan that they give you in the event that the business does not make money. Common collaterals may be your house mortgage, your car, or other properties that you may have, that may not even be connected to the business. This system puts the small business at risk of losing everything that he has in case the business goes down. Because invoice financing does not deal with extremely large sums of money, then collaterals of this nature are not needed. All that is required by the finance company is the invoices, which they will be responsible for collecting later.

2. Invoice financing allows for transparency and clarity with regards to how much the business is making- The disadvantage with getting a large amount of money through a bank loan is that one may think that the money has already been earned. Invoice factoring tells you exactly how much the company has earned because it is monitored through the amount in the invoice. The business owner can then see how much he should only spend, with regards to how much money the company made in that time frame.

3. Invoice financing leads to complete automation of real time balances for client payments- because of the terms that come with the invoice financing option, business owners have instant access to cash and can decide freely what he wants to do with it. He is able to address what his business needs NOW as opposed to waiting for another 90 days, when the unaddressed need can develop into a problem for the business.

For small businesses looking for day to day financing solutions, invoice financing is presenting to be a real viable option. Anyone can learn more about invoice discounting contacting business financing companies in their area.

Barack Obama spoke about small business loans in Toledo Ohio on October 13, 2008.

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by Public Domain Photos

uk music letter May 2010


Image by Iron Man Records
Our friends at UK Music are looking for established music businesses in the North East who have approached banks for business finance.
Experience from across the industry suggests that this is hard to obtain and UK Music would like to make a case to the Government on behalf of the industry to request additional support in dealing with banks.

If you have been successful in obtaining finance for your business from the banks, UK Music would still like to hear from you as they would like to present a number of case studies.

Please read the letter below and forward your responses to info@ukmusic.org with your name, business and telephone number.

Thank you.

Damian Baetens
Director – Business Development
Generator

www.generator.org.uk

This business financing strategy article will describe the importance of avoiding “problem commercial lenders”. The article will NOT name specific lenders to avoid, but key examples will be provided to illustrate why prudent commercial borrowers should be prepared to avoid a wide variety of existing commercial lenders in their search for viable business financing strategies.

I have been advising business owners for over 25 years, and I have encountered many business financing situations which have involved commercial lenders that I would not recommend as a result. These problematic situations have especially involved commercial mortgage loans, business cash advance situations and unsecured working capital loans. As a direct result of these experiences and daily conversations with other commercial loan professionals, I do in fact believe that there are a number of commercial lenders that should be avoided. This conclusion is typically based on more than one negative experience or an obvious pattern of lending abuses.

I have published many commercial loan articles which are designed to assist commercial borrowers in avoiding business loan problems. One of the most serious business financing situations is a commercial lender that causes business loan problems for their commercial borrowers on a recurring basis. It is particularly this type of commercial lender which prudent commercial borrowers should be prepared to avoid unless viable alternative business financing options do not realistically exist.

Here are a few examples of why certain commercial lenders should be avoided.

BUSINESS FINANCING STRATEGIES AND COMMERCIAL LENDERS TO AVOID EXAMPLE NUMBER 1 – Yes or No?

I have published an article which discusses the tendency of many banks to say “YES” when they mean “NO”. Such banks will typically attach onerous business financing conditions to commercial loans instead of simply declining the loan. Business owners should explore other commercial loan alternatives before accepting business financing terms that put them at a competitive disadvantage.

BUSINESS FINANCING STRATEGIES AND COMMERCIAL LENDERS TO AVOID EXAMPLE NUMBER 2 – The Commercial Appraisal Process

For commercial real estate loans, commercial appraisals are an unavoidable part of the commercial loan underwriting process. The commercial appraisal process is lengthy and expensive, so avoiding commercial lenders which have displayed a pattern of problems and abuses in this area will benefit the commercial borrower by saving them both time and money.

BUSINESS FINANCING STRATEGIES AND COMMERCIAL LENDERS TO AVOID EXAMPLE NUMBER 3 – Think Outside the Bank

In smaller metropolitan markets, it is not unusual for a dominant commercial lender to impose harsher commercial loan terms than would typically be seen in a more competitive commercial financing market. Such commercial lenders routinely take advantage of a relative lack of other commercial lenders in their local market. An appropriate response by commercial borrowers is to seek out non-bank business financing options. It is neither necessary nor wise for commercial borrowers to depend only upon local traditional banks for working capital and business cash advance solutions. For most business financing situations, a non-local and non-bank commercial lender is likely to provide improved commercial financing terms because they are accustomed to competing aggressively with other commercial lenders.

BUSINESS FINANCING STRATEGIES AND COMMERCIAL LENDERS TO AVOID EXAMPLE NUMBER 4 – Meaningless Pre-approvals

Commercial borrowers frequently want a commercial lender to approve their commercial loan at the earliest possible point. The assumed benefit to this early business loan approval is that it will enable the commercial borrower to make other business plans which depend on the business financing being finalized.

Because an ethical commercial lender will treat any form of an approval very seriously, commercial borrowers should expect that a meaningful version of such an approval will not be realistically possible in just two or three days. Nevertheless there are commercial lenders who provide their own special version of a pre-approval within just a few days of receiving preliminary application information. Because this abbreviated approach to pre-approvals almost always produces unexpected surprises for the commercial borrower as the business financing process goes forward, commercial borrowers need to be extremely wary of any commercial lenders that take this approach.

Why do some commercial lenders provide such meaningless pre-approvals? There are two likely reasons. (1) To motivate the commercial borrower to stop considering other potential commercial lenders. (2) To provide a pre-approval that is similar to a structure prevalent with residential mortgage loans. Since many business loans are arranged by residential mortgage brokers who are frequently unfamiliar with common business financing procedures, this reason will be especially applicable when dealing with commercial lenders that specialize in dealing with residential mortgage brokers.

Copyright 2005-2007 AEX Commercial Financing Group, LLC. All Rights Reserved.

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by techne

Business Class


Image by Tulane Public Relations
FINE4600 Cases in Finance course in the business school

Myke Yest, PhD
Clinical Professor, Finance

"Cases in Finance" is a senior-level finance elective that gives students the opportunity to analyze a variety of challenges faced by firms, including the need to finance growth and value new investments.

Today, the students were working within their teams to analyze the financial health of a variety of firms. Specifically, the balance sheets of 5 anonymous firms in different industries were shown on the board without an indication of what their industry was. Students had to match up each balance sheet with the correct industry (from a list provided). The exercise helps them understand that firms in different industries often have quite different financial characteristics and caution should be used when comparing financial statements across firms.

Small business finance acts as a stepping stone for the small businesses, to explore innovative and holistic approach of business to increase their profits. With small business finance borrower can minimize the difficulty of funds that the borrower comes across during the business.

Small business finance depends upon nature of the business i.e. new or seasoned business. Amount fetched through the small business finance can be used for various purposes like buying a land, furniture, raw material, advertisement, machinery, outgoing expenditures etc.

Depending upon the borrower’s requirement he can either opt for the secured or unsecured loans. If the borrower wants to enjoy the attractive features and larger loaned amount then he should opt for the secured small business finance, but for that he has to place some valuable collateral against the loaned amount.

Borrowers who are looking for small amount can opt for unsecured small business finance. Unsecured small business finance is often availed by those borrowers who are unable to place collateral against the loan amount. Tenants or non-homeowners can avail the unsecured business finance at the competitive rate of interest.

Small business finance can be accessed from various lenders like prominent banks, institutions, lenders. With these, nowadays small business finance is also available through the online market.

Online has proved to be a simple and the fast method of acquiring the small business finance. While opting for the small business finance borrower must not forget to compare the quotes of different lenders in respect to repayment period, lower interest rate, and the loaned amount.

Borrower with bad or poor credit history like CCJ’s, bankruptcy, defaults, arrears IVA, etc can freely opt for the small business finance.

The most important task to obtain small business finance is preparing a business plan. In small business finance, business plan provides the borrower to know what amount to be raised for his business.

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by Birmingham City University

Business Class


Image by Tulane Public Relations
FINE4600 Cases in Finance course in the business school

Myke Yest, PhD
Clinical Professor, Finance

"Cases in Finance" is a senior-level finance elective that gives students the opportunity to analyze a variety of challenges faced by firms, including the need to finance growth and value new investments.

Today, the students were working within their teams to analyze the financial health of a variety of firms. Specifically, the balance sheets of 5 anonymous firms in different industries were shown on the board without an indication of what their industry was. Students had to match up each balance sheet with the correct industry (from a list provided). The exercise helps them understand that firms in different industries often have quite different financial characteristics and caution should be used when comparing financial statements across firms.

Credit card processing is often one of the most overlooked working capital business loan issues for a business owner. An effective credit card processing program can eliminate many credit card factoring difficulties by implementing appropriate business finance and business cash advance cost-reduction alternatives.

Credit card processing improvements can achieve dual working capital management benefits by both eliminating credit card financing difficulties and providing improved cash flow by enhanced management of business finance and merchant cash advance programs. The total management benefits of integrating credit card receivable factoring and credit card processing services can be first-rate and significant for working capital business loan programs.

Business Finance Working Capital Loan: Cost Reduction

As I mentioned in a previous working capital business loan report, for any merchant that accepts credit cards as a payment method, a merchant cash advance (obtained through credit card factoring and credit card processing) is an important business finance tool that is frequently overlooked. Even the most successful businesses frequently need more cash than they can obtain from a commercial bank. However, what is typically overlooked by many merchants is the chance to lessen their credit card management and credit card processing costs at the same time that they obtain a merchant cash advance via credit card receivables financing and a working capital business loan.

Working Capital Business Finance Management: Avoid Credit Card Processing Problems

Credit card factoring is an important business finance option to consider when a business is seeking a short-term commercial loan, an unsecured business loan and improved approaches to credit card processing services. Unfortunately there are a number of problems to be avoided with credit card processing and credit card factoring programs. As with any successful business financing strategy, there will usually be only a small number of commercial lenders who are effective at implementing the joint tasks of credit card processing and credit card factoring strategies properly.

Because of such business finance problems, the choice of a provider of credit card receivable financing and credit card processing is extremely important to any business that accepts credit cards. To demonstrate which providers of credit card receivable factoring and credit card processing should be avoided, I have written a working capital business loan article which lists ten critical difficulties to avoid with credit card processing and credit card receivables management.

Business Cash Advance: Best and Lowest-Cost Credit Card Processing

For businesses either dissatisfied with their current credit card processing and business finance management services or simply wondering if any cost improvements are possible, a credit card receivable factoring program which eliminates all ten specific working capital business loan obstacles mentioned above should be evaluated. One of the major working capital management reasons for evaluating credit card receivables financing, credit card processing and credit card receivable factoring in this combined fashion is that the low-cost producers of the best merchant cash advance programs are likely to be utilizing the best and lowest-cost credit card processing and management producers.

In many situations, the best and lowest-cost producers of credit card management and credit card processing services are not likely to be available to the typical merchant without being a part of a working capital business loan plan covering credit card receivable financing, credit card processing and credit card receivables management. The overall business finance improvements realized from the coordination of these two key working capital strategies is likely to be worth the management efforts.

Business Loan and Working Capital Management: Improving Cash Flow

Business owners should not lose sight of the substantial total business finance benefits which might accrue to their business by prudently combining credit card processing and credit card receivables management services. As mentioned above, cost reduction and improved cash flow are primary goals of successful working capital management strategies, and the proper coordination of credit card factoring and credit card processing should accomplish both of these difficult goals simultaneously.

Copyright 1995-2007 AEX Commercial Financing Group and Stephen Bush. All Rights Reserved.

Related Business Financing Articles

posted by Admin on

by Tulane Public Relations

Business Class


Image by Tulane Public Relations
FINE4600 Cases in Finance course in the business school

Myke Yest, PhD
Clinical Professor, Finance

"Cases in Finance" is a senior-level finance elective that gives students the opportunity to analyze a variety of challenges faced by firms, including the need to finance growth and value new investments.

Today, the students were working within their teams to analyze the financial health of a variety of firms. Specifically, the balance sheets of 5 anonymous firms in different industries were shown on the board without an indication of what their industry was. Students had to match up each balance sheet with the correct industry (from a list provided). The exercise helps them understand that firms in different industries often have quite different financial characteristics and caution should be used when comparing financial statements across firms.

Many business finance activities will involve the use of credit card processing decisions. These business operations should be analyzed simultaneously with business cash advance programs for several reasons. If done properly, a business should reduce their costs and improve their cash flow.

Credit card financing in conjunction with processing can be one of the most overlooked and problematic business finance issues for a merchant. An effective receivables factoring program can lessen many obstacles by implementing appropriate working capital business loan cost-reduction solutions.

These improvements can achieve dual working capital management benefits by both eliminating credit card financing difficulties and providing improved cash flow by enhanced management of working capital loan and merchant cash advance programs. The total business finance benefits of integrating credit card receivable factoring and processing services can be first-rate and significant for working capital management programs.

Working Capital Business Loan Solutions: Cost Reduction

As I noted in another business finance article, a retail-service business cash advance (obtained through credit card processing and credit card receivables management) is a vital working capital management tool that can be easily overlooked. Even thriving merchants frequently need more financial resources than they can get from a bank business loan. However, what is usually even more overlooked by many businesses is a unique opportunity to decrease their processing and management expenses at the same time that they obtain a working capital cash advance via receivables factoring.

Business Finance and Credit Card Processing Solutions: Avoiding Problems

Credit card receivables financing is an excellent business finance alternative to consider when a merchant is seeking a short-term business loan, an unsecured commercial loan and improved strategies for processing and management. However, there are a number of working capital management difficulties to be avoided. As with most successful working capital loan strategies, there will typically be only a few lenders that are effective at properly executing the combined business financing tasks.

Because of such problems, the choice of a processing provider is extremely important to any business. To demonstrate which providers should be avoided, I have written a business finance article which lists ten critical difficulties to avoid.

Working Capital and Credit Card Factoring Solutions: Best and Lowest-Cost

For businesses either dissatisfied with their current processing services or simply wondering if any cost improvements are possible, a program which eliminates all ten specific working capital business loan obstacles mentioned above should be evaluated. One of the major working capital management reasons for evaluating processing and business cash advance services in this combined fashion is that the low-cost producers of the best merchant cash advance programs are likely to be utilizing the best and lowest-cost processing and management producers.

In most cases, the lowest-cost and best providers of processing and management will not be available to an average business other than in conjunction with a working capital plan that includes both processing and business cash advance programs. But the benefits realized from the integration of these two key working capital management programs should be worth the efforts of combining them.

Working Capital Management and Business Cash Advance Solutions: Cost Reduction and Improved Cash Flow

Businesses should not overlook the substantial business finance benefits which will accrue to their business by effectively coordinating credit card factoring and credit card processing. As noted above, improved cash flow and reduced costs are key results of successful working capital business loan solutions, and appropriate combination of these business financing services is likely to accomplish both of these difficult goals concurrently.

Additional Credit Card Processing and Business Cash Advance Resources

Additional business finance reports include a discussion of more detailed business cash advance and processing factors. Separate report topics include stated income business loans, SBA loan refinancing and buying a business opportunity. Several of these reports are relevant to factors addressed in this article and will serve as effective business financing resources to provide strategies and solutions for other problematic commercial loan scenarios.

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