Bay View Funding Blog

Cash flow challenges frequently present huge problems for businesses, and can be crippling when there is no immediate financial solution on the horizon. There are many reasons for a cash flow challenge, but a limited number of ways to combat the problem. 

Obtaining a loan from the bank when your business is starting out, and not yet profitable is more than likely going to be a challenge. So how do you get the money you need to meet your initial costs?

This may sound like a strange question, but have you taken everything into consideration when it comes to your customers with regard to prompt payment? 

Invoice factoring is increasing in popularity as an alternative lending source, why?

How long do you spend working on invoicing and all the related spreadsheets and paperwork inherent in the process? Is this the most effective use of your time? 

Small businesses need to be funded, and it appears that the options for funding are opening up. Let’s consider the small business loan option, and what you will need to provide to your lender when applying.

An article in SBA News very clearly sets out what needs to be addressed when your company decides to apply for a business loan. The most common forms of small business financing can be found through a bank or a government agency such as the Small Business Administration (SBA). The most important requirement is that your company must be financially able to cover any obligations despite any hiccups along the way. It is vital to maintain good credit standing and excellent business relationships with both customers and vendors

Poor cash flow management; it is the Achilles heel for many small businesses. It is always hard when your customers pay late, but if you effectively manage your cash flow, late payment shouldn’t mean disaster. It pays to be prepared!

Let’s face it; there is a lot to think about when starting a new business. It is common business practice to take on long, and short-term debt to help finance operating expenses, especially as you start out and as you begin to grow. This debt needs to be managed and utilized in a way that will encourage success, not bog you down in the debt mire. It certainly feels great when you realize your company has grown enough that you can balance your accounts payable with your accounts receivable. But then it is time to grow again and this is when cash flow management becomes even more critical.