Small business owners seeking funding to start, operate, or expand their businesses often fall prey to banks and lenders who are deceiving about the costs associated with borrowing. Monthly interest rates alone are not an indicator of the overall cost of a loan. Predatory lenders may hide additional costs, such as the annual percentage rate (APR), closings costs, service fees, and other fees or penalties. If you are a small business owner looking for financing, it is essential that you do your research not only to calculate cost accurately, but also to become aware of all lending options available to you.
Financial tools & management
You’ve got the business plan down, but you need some help managing your finances and cash flow. Accounting, taxes, payroll—you deal with enough numbers every month to make your head spin. But you don’t have to tackle the numbers alone. These resources can help you keep your business in good financial health.
As you navigate business financing, it may be tempting to use your personal finances to help out when your business needs a boost, but that is not always the best solution in the long run. Separating your personal and business finances can help ensure you treat your business like the independent entity it is, while safeguarding your personal finances.
For most businesses there are two types of financing: debt and equity. Debt financing is a loan. The lender gives you money and you promise to pay it back with interest—the cost of borrowing the money. Equity funding means selling a piece of your business. An investor gives you money in exchange for owning a piece of your company.
If your small business is drowning in high cost debt, you might be having a hard time paying your employees, purchasing inventory, or keeping up with other operational expenses. Exorbitantly high interest rates could be preventing you from having the funds your business needs on a monthly basis. If you want to put cash back into your bank account, here are three big benefits of refinancing your loans.
From startup and everyday operating costs to growth and expansion costs, cash is the lifeblood of a business. Large corporate organizations and small business alike are required to make decisions about where and when to spend (or not to spend) money. To do this, it’s imperative that you monitor what is commonly referred to as “cash flow.”