While the economy has always been up and down, running a small business can be one of the most rewarding experiences. Financial management is the utmost importance when it comes to running a small business. If you aren’t very good at money managing, it won’t matter how great your product or service is. You make sure your money generated goes into your business and is not unaccounted for. You should be investing this money back into your business to ensure growth in your company.v Get more information from Certified Business Loans Online website.
Many first time businesses fail within the first year of opening. Usually this is due to the lack of financial management. You should consider hiring a professional banking institution, accountant or financial planner to help guide you through this process. You should also have the knowledge of basic financial principles whether you choose to hire a professional or not. As a small business owner, you will need to be able to analyze reports and day to day expense tracking. You will also need to know about accounts receivable and accounts payable processes. It is important to know when payment is expected and to prepare for any outgoing expenditures.
Now it’s time to secure your small business loan and there are many types to choose from. There are SBA (small business) loans and conventional bank loans. The difference between the two is that the government is not guaranteeing that the bank will get it’s money back should you default on the loan. Conventional bank loans carry low interest rates. It is also much easier to go through the lender approval process and include shorter repayment types. Alternative lenders can provide fast approval decisions in just a matter of hours. Your business doesn’t have to have a perfect financial status to be approved by an alternative lender.
You can apply for a CDC/504 loan that provides businesses with fixed-rate financing so you can purchase equipment for your business. Funds from these loans can be used to purchase land and machinery. Your SBA lender will work in tandem with a 504 loan providing 40% of the total project costs. The 504 loan will provide 50% and the borrower only has to put down %10. You can ask for a merchant cash advance based on the volume of your monthly credit card transactions. Many small businesses can receive up to %125 of their monthly volume. Merchant cash advances are easy to obtain and can be paid to you in a matter of days.