Optimism seems to be abound, economically at least, with a businessman heading for the White House. The Dow has risen and, despite vocal opposition from opponents on many of his decisions, President-elect Trump has been announcing job creation measures even before he has taken the oath of office. For Wall St. and Main St., exciting things are happening. Banks and FinTech companies are using technological advances to improve access to capital, which is the lifeblood for small business growth. These developments bode well for small businesses in search of capital in 2017.
Access to Capital
Nationally, three out of 10 small businesses are owned by women. A measly 2 percent of them have broken the $1 million mark in revenues. Why? That question motivated Erin Joy, founder of Black Dress Partners, a business consulting organization. Joy and her team surveyed 5,000 female business owners in Missouri, Illinois, Indiana, Iowa and Kansas to find out.
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.
A federal tax lien is filed by the federal government when you owe money in taxes to the IRS. These documents ensure that the government will receive the taxes they are owed by giving them a right or claim to your personal property. Liens look bad on your credit report and can be difficult to remove, but there are resources to help you resolve the issue.
Businessmen often have good ideas and clear image of the turning them into the reality. Unfortunately, like all good things in life, these need solid ground and specifically rather big amount of money. It requires thorough business plan and hours of visits from one potential investor to another amid hopes someone will be interested enough to invest. And there is no guarantee this strategy will work out. After years of the futile attempts, disappointment still has a chance to weigh down the balance.
Getting a business loan isn’t easy, with banks having significantly tightened their criteria since 2008. Of course, your business could be in the lower-risk category, so you’ll strike lucky, or you might secure finance from an alternative lender applying different criteria. But having obtained the business loan you need, there are still several pitfalls you can encounter. Or to put it another way: how should you not spend your business loan?
Business credit scores are one of the key factors determining whether or not an enterprise qualifies for a loan. Yet surprisingly enough, most businesses don’t even know what their scores are. This astonishing revelation has come from a new survey by Manta, an online community for small business owners.
Conventional wisdom says not to finance your business with a credit card. But times are changing, and credit cards have become a useful part of launching a startup business. In fact, credit cards are ranked as the third most popular source of cash for small businesses, right after bank loans and the business’s revenue itself.
So how can you make sure to use credit cards the right way to finance your business?
The economy’s continued expansion could have you, like many business owners, optimistic about your company’s growth prospects for this year and going forward.
Here are five things for business owners to know about getting a bank loan or credit union loan in 2016:
Running a small business doesn’t come cheap. Even if you’ve scrimped and saved to bootstrap the operation on your own, or were fortunate enough to get an investment from friends or family, there may come a time when you need a loan to continue operating your business.
Whether it’s working capital to fulfill a large order, a small loan to purchase new equipment, or a large loan to expand to a new location, chances are that at least once in the life of your business you’ll need to approach a bank for a loan.