Tag: business

Funding your business with outside capital is often necessary to help it grow and realize its full potential. If you’re in the market for small business capital, you may quickly realize there are many funding methods available. Read our guide to learn what to look for when choosing the right financing method for your company.

Determine Your Funding Needs

There are a few different types of business financing available to suit your funding needs. One of the main differences is whether you need ongoing capital from some type of revolving credit, or a larger lump sum from a small business loan.

Additionally, the funding timeline varies widely by lender. Small business creditors like The Business Backer work hard to make the funding process as easy and efficient as possible. Other business lenders, including banks and credit unions, can take much longer to review applications and fund approved borrowers.

Assess the Available Business Funding Options

You may qualify for more than one type of loan to help fund your business. Some businesses choose to leverage more than one financing method to manage larger business expenses and pay for everyday costs. Some business funding

When you apply for small business funding, lenders take a variety of factors into consideration before making a decision. Details such as your credit score, time in business and revenue are important, but what you may not have considered is your business’s cash flow. Read our quick guide to learn more about cash flow and how it can impact a small business loan application. 

What Is Cash Flow?

Cash flow is defined as the net amount of money transferred into and out of a company over a set time period. A positive cash flow indicates that more money is moving into the company than out of it, whereas a negative cash flow means that the business is spending more cash than it generates in revenue. Read this guide to learn how to calculate cash flow and access free cash flow statement templates.

How Does Cash Flow Affect My Loan Application? 

Small business lenders typically ask for bank statements and other financial data to determine whether you have positive cash flow and can afford to take out the loan. If you have a history of positive cash flow, you’re more likely

If you’re in need of small business financing, both your personal and business credit can affect your ability to secure a small business loan. Your personal credit health is especially important if your business is relatively new or hasn’t taken out a loan in the past.

Although credit reporting errors are relatively rare, such errors can negatively impact your credit scores. Learn how to access your full credit reports and dispute any reporting errors with our helpful guide.

Step 1: Access Your Full Credit Reports

There are three major personal credit reporting bureaus and three major business credit bureaus. Make sure to monitor your full credit reports from all major credit bureaus to get the full picture of your credit health.

To access your personal credit reports, head to AnnualCreditReports.com or use the links below:

To access your business credit reports, contact each bureau directly:

Step 2: Review Your Credit Report

Next, make sure all your information is complete and correct. It’s especially important that your financial data is accurate and free of errors, including your payment history, credit accounts and outstanding debt.

Personal credit reports may include:

• Personally identifiable information
• Credit

Running a business is full of challenges, and growth can add new ones. Adequate funding helps you meet every opportunity head-on.

In today’s unpredictable environment, it’s important to know what options are available — and how they can work together to help your business grow. Each unique situation calls for a unique approach.

Looking to tackle the next chapter of your business? Here are four reasons why you may want to combine multiple financing options to do it.

1. Combining Financing Options Can Provide Additional Funds

A small business loan can be a great way to give your company the boost it needs to get off the ground. But what happens when you encounter a new growth opportunity that requires additional funding?

Combining multiple financing options is one way to keep the momentum up. Do you need to cover expenses? Has growth started to outpace your ability to keep up? Is there an unexpected opportunity you want to take advantage of? There are many types of financing that work in conjunction with your current plan to give your business the boost it needs.

Explore your options by talking with your lender —