As your small business grows, you may find it necessary to have employees make purchases for the company. Cash and business checks are possibilities, but both have limits and liabilities. Business credit cards can offer at least 3 great benefits: 1. Tracking Purchases is Simpler With business credit cards, all purchases are easy to track. You can simply go online to see complete records of every transaction. When using cash and reimbursements, it can easier for employees to fudge the numbers [...]
In the course of trying to raise money for your business needs, you have the choice of seeking dilutive or non-dilutive financing. Each has a role to play, but it is important to time them right to make the most of your ownership. Dilutive financing is any type of capital received by your company that diminishes your ownership. This includes deals with angel investors and venture capitalists when you give up a portion of your equity to gain their cash. It also includes any public or private rounds [...]
A successful investment campaign for your growing company will include pitching your firm to the right investors or lenders. And part of convincing those people to invest their cash in your company is presenting them with a succinct and promising business plan. The first two parts of this article discussed the income statement and balance sheet, and this last part goes over the importance of the cash flow statement. A cash flow statement tracks how your company generates and uses cash during a [...]
Writing up an effective business plan to attract investors or lenders includes at least three essential items. Part I described the ins and outs of an income statement. This article defines the necessary elements of the balance sheet and Part III outlines the importance of the Cash Flow statement. Putting together a well-polished set of financial statements may be the key to securing the business financing you need. A balance sheet is a measure of how much your business is worth. It can be created [...]
When you’re ready to enlist the help of venture capital, angel investors or even your local banker to secure funding for your company, preparing a solid and effective business plan is essential. While the business concept and information on key leadership is certainly important, investors and lenders are always going to want to get down to the nitty-gritty financial details of your firm. They want to know how your business shakes out by the numbers – how much your company is worth and what is [...]
There are a plethora of online business loans available today. Most of these are short-term loans, similar to cash-advance loans. They can charge extremely high interest rates, but typically require little in the way of background or credit checks. This can be especially attractive to small business owners without a long business history or who are in a cash crunch. Even still, entrepreneurs should be careful before jumping into a short-term online loan. Here are 3 concepts to consider before signing [...]
The beginning stages of building a business from the ground up can be very challenging, to say the least. Time and money are at the top of most entrepreneurs’ wish lists. Yet even once your business is up and running, there are still hurdles to jump over. Here are three important challenges on the horizon to look out for. 1. Managing Money Effectively As soon as cash starts coming in, there needs to be a money management strategy in place. Business founders need to have defined boundaries between [...]
Getting started in the commercial mortgage market can be daunting if you are not familiar with the jargon. In order to be a savvy commercial real estate investor, you first need to learn the lingo. Here are seven of the most important terms used in commercial mortgage discussions: 1. Gross Income This is the total amount of money the commercial property will bring in. It include rents as well as things like late fees or laundry/vending machine revenue. 2. Effective Gross Income This factors [...]
Starting up your own company can be exciting and full of adventure, but it can also come with big risks. Sometimes buying a young company can be even more exciting because your get the benefits of an existing operation with fewer of the startup financial risks. Even purchasing an existing company typically takes financing from banks or other lenders though. Those lenders will want to know why the business is worth the amount of money you are paying for it. While the actual value of a business [...]
Paying for the daily and long-term needs of a growing business can be challenging. Venture capital investments and small business loans can cover many of those costs, if you can get them. One of the easiest options for business funding is business credit cards. While they do not generally have high enough limits to finance all purchases, many daily expenses can be effectively managed with business credit cards. Beyond just purchasing power, these cards offer three great bonuses. Rewards Most [...]