Posted on: 31/07/2020 Posted by: Kageoni Comments: 0

Many small business owners struggle with obtaining business finance, and there is absolutely nothing unusual about this. Further, in many cases, if the CU does make business loans they usually don’t have such high credit standards that other lenders do. CUs tend to focus more on how your business and their loan impact the community at large – not just their bottom line.

Even though people think lending money from your close friends or relatives ruin the bonds of relationship, it is advisable to ask for funds from them if all other options are ruled out and you know that the problem can definitely be solved with very little loan

Purchase order funders will not put cash in the hands of the new business owner, but will pay the suppliers directly and then when the finished product has been sold to the customer, the factoring company will collect the payment from the customer directly to satisfy the funds advanced to suppliers to produce the loan

I don’t understand why banks catch UGLY for this; maybe it’s because they don’t shy away from their main objective which is to make healthy profits based on optimizing the forces that are in their control from an economic standpoint (product availability or lending money AND the prices they charge for this product or interest).

You can either increase the amount of equity in your business (take on more investors, generate and retain more net profits, or infuse more in owners’ equity) or work to reduce your overall liabilities (paying off suppliers, other debtors or reducing any outstanding liability on the business’s balance sheet).