Everything to Know About Your Business’ Balance Sheet

October 15, 2019

By Kat Tretina –

Business DocumentsAs a small business owner, you likely wear many hats. You’re at once a product developer, marketer, and a customer service representative. But, one of the most overlooked tasks you may have is accounting.

Managing your company’s books is a time-consuming and complex process, but it’s necessary for your business’ success. If you plan on applying for a business loan, it’s important to pay attention to key financial topics and learn how to create and read balance sheets so you can secure the necessary financing.

Whether you handle your business’ finances yourself or outsource your accounting to a professional, here’s what you need to know about business balance sheets and why they’re important for business loan applications. (more…)

Protecting Your Personal Assets As a Business Owner

October 8, 2019

HouseBy Brad Wiewel –

Over a million lawsuits are filed in state courts every year. And, according to one source, all of us have a 10% chance of getting sued in any given year and a 33% chance of getting sued during our lifetimes! This is scary information given that being on the losing end of a lawsuit can be financially devastating.

As a business owner, you have special cause for concern. That’s because if your business is sued and ordered to pay a money judgment as a result, the plaintiff in the lawsuit can collect on the judgment not only by going after its assets, but by going after your personal assets too if your business does not have enough resources to pay the full judgment amount.

The good news however, is that appropriate up-front planning can protect your personal assets. For example, you can: (more…)

Which Business Credit Scores Matter the Most?

September 24, 2019

By Connor Wilson –

Credit ReportNot all credit scores are created equally. You likely already know that you have a personal credit score; it’s what you need to buy a car, get a mortgage, credit card, or even pass a background check. You probably also already know that there are three bureaus (Experian, Equifax, TransUnion) that report your credit scores.

What you may not have known is that your small business has a business credit score. Just like your ability to pay your credit card bills and mortgage payments on time factors into your credit score, your ability to handle your business’s debt and accounts payable, among other factors, all go into your business credit score.

Just like personal credit scores, business credit scores come from multiple reporting bureaus (Dun & Bradstreet, Experian, Equifax), and can help you get better financing. Also just like personal credit scores, business credit scores are not all created equally. Here’s a breakdown of three credit scores that matter to business owners. (more…)

Cash Flow vs. Profit: What’s the Difference?

July 16, 2019

By Samantha Novick –

Cash flow chartAccording to a Quickbooks report from earlier this year, “61% of small businesses regularly struggle with cash flow.”

Even if your business is profitable, you can be at risk of falling into financial demise. How? Because if you don’t have enough liquid cash on hand to meet the myriad of current and near-term expenses that come with owning a small business, it can be nearly impossible to keep your operation afloat.

What is cash flow?

Cash flow is essentially the cycle of funds going in and out of your business from operations, investing, and financing activities. It’s the amount of liquid cash that you have at your disposal at a given time. Your business can either be cash flow positive, or cash flow negative. (more…)

What Is Equipment Leasing and Is It Right for Your Company?

July 2, 2019

By Michelle Black –

EquipmentNo matter how smart you are or how great your product may be, your business needs one very important ingredient if it’s going to thrive — the right equipment. The right equipment can help optimize performance and take your business to the next level, but it might be out of reach.

Thankfully, an equipment lease may be able to help you get the specialized machinery or technology your company needs now, even if you don’t have all the money you need to pay for ownership of the equipment up front or you’re not interested in equipment loans.

With an equipment lease, you get the right to use the equipment while you’re making monthly payments to a leasing company or financial institution.

What is an Equipment Lease?

Essentially, equipment leasing can be viewed as an alternative form of small business financing — most notably equipment loans. It’s a way to help you get what your business needs now with less money out of your pocket on the front end. However, you’ll generally need a decent personal credit score to qualify for the most attractive rates and terms. (more…)

America’s SBDC and Venturize Ask the Tough Questions About Becoming Loan Ready

May 21, 2019

By Meghan Ott, Venturize –

Business Meeting

In celebration of our new partnership with America’s SBDC, Venturize co-hosted a Twitter chat during National Small Business Week to talk about the top tips and resources to help small businesses and aspiring entrepreneurs become loan ready.

We were happy to be joined by our friends at Intuit QuickBooks, the New Jersey Business Action Center, Small Business Majority, BIGG Success, and BizBuySell. There were also a number of SBDCs that participated, including the Arkansas Small Business and Technology Development Center, New York SBDC, University of Minnesota Center for Economic Development, and Temple University SBDC. (more…)

What Experts Say Most Entrepreneurs Don’t Understand About Becoming a Business Owner

May 14, 2019

By Bob House, President, BizBuySell –

Business MeetingIf you think obtaining funding is your biggest priority, think again.

When it comes to starting a new business venture, most entrepreneurs focus solely on how they can get funding. Yet they often do not have a clear understanding of the funding process. Nor have they considered some of the many challenges of business ownership and how that might affect the amount of money they actually need.

“At least 90 percent of aspiring entrepreneurs ask how they can get financing, grants, or something related to capital,” says Brad Bunt, director of North Central Texas SBDC.

We spoke to some of the leading experts at America’s SBDC, a nationwide network of Small Business Development Centers (SBDCs), to get their insights on the most common questions asked by entrepreneurs. According to these experts, while obtaining funding was the most common issue, there are many more important things entrepreneurs should be thinking about first. (more…)

Common Pitfalls in Business Credit Cards and How to Avoid Them

December 17, 2018

By Linsey Knerl –

Almost every modern company runs on some form of credit these days. Even the most profitable businesses benefit from having a line of credit available for emergencies, well-planned purchases for perks, or improving their credit score. According to the Small Business Administration, 65 percent of small businesses rely on credit cards, but just 50 percent use business cards in the name of their company. This strategy can potentially harm a business owner’s personal credit, and it limits the opportunities to get business funding in the future.

If a business credit card is the wiser choice, why doesn’t everyone get one? For being a very astute business move, cards have their drawbacks. Here are some of the ways that business credit cards can do more harm than good and keep you from achieving the most important growth goals. (more…)

4 Benefits of Monitoring Your Business Credit

October 15, 2018

By Connor Wilson –

Monitoring business creditYou don’t need a new year to resolve to work on your credit. It’s a common goal, and as people look to buy a home or a new car or get out of debt, credit monitoring becomes a hot topic. If you’re a small business owner, you might be surprised to know that you don’t just have a personal credit score, you also have a business credit score to think about. In a Nav survey, 45% of responding small business owners did not realize they had a business credit score, 72% didn’t know where to find information on their business credit score, and 82% had no idea how to interpret their score. If you fall under any of those categories, it’s definitely time to learn more about your business credit score.

Running a business means time is at a premium, so why should you invest time in monitoring your business credit? Here are 4 benefits of keeping an eye on your business credit score. (more…)

This New Service Can Help You Build Business Credit Faster

September 17, 2018

By Gerri Detweiler –

ArrowsMany entrepreneurs find the process of building business credit frustrating. It’s not terribly difficult, but it does involve a few steps, the most important of which is to obtain accounts that report to commercial credit agencies.

By paying those bills on time (or early) and keeping your debt in check, you can help build strong business credit. But because many small business bills aren’t reported to commercial credit reporting agencies, business owners may find themselves with little credit data on their reports.

But there’s a new simple solution that can help business owners build credit using accounts they already pay, and it’s fast and easy. Here’s how it works. (more…)