Finance/Capital Access

Nearly every successful company has had to face difficult times with tight cash flow and burdening debts at one point or another. However, only the most dedicated and resourceful entrepreneurs and business managers are able to handle the pressure and make the necessary adjustments. Put yourself in the class with those who’ve struggled but come out on top using the following 5 tips to improve your cash flow to debt ratio:

1. Reduce Unnecessary Expenditures

First and foremost you’ll need to reduce your operating cost as much as possible without drastically affecting the quality or efficiency of your products or services. This could mean utilising energy-efficient equipment and becoming proficient at saving power, reducing supplier contract commitments, terminating some employees, and selling some equipment or inventory that is costing too much to maintain or store. Eliminating frivolous overhead is perhaps the most important step in freeing up cash for more important purposes like investments and debt repayments. (more…)

An SBA loan is the most common type of loan for purchasing a franchise.  Because the SBA provides up to an 85% guarantee to the bank, banks are more willing to assume the risk of lending money to a “start-up” business. It’s a common misconception that the SBA approves loans. The SBA only provides a guarantee to the bank; if the bank is a PLP lender (Preferred Lender Program) then the bank is still the entity approving the loan.

A bank will typically require you to provide 20% to 30% of the total cost of the business and the needed working capital.  For example, if you need $150k to purchase your franchise and $50k in working capital, for a total project cost of $200k, the bank would want you to put $40k to $60K towards the project and the bank would provide a loan for balance.  In addition to the capital injection the bank will require some form of collateral.  This can be a combination of business and personal collateral such as the equity in your home, real-estate or other investments.

Banks all differ on what criteria they focus on when deciding whether or not to approve a loan. These parameters are known as the bank’s credit box.  Some banks place more emphasis on your credit score, other banks may be more interested in the amount of collateral you can provide.  Some banks may avoid certain industries because they already have enough exposure to that industry in their loan portfolios. (more…)

The Crowdfund Investing Industry has been gaining momentum every day, yet its impact is still only a fraction of its full potential for the economy. Our question to you is… will you be ready when it blows up into “the next big thing’?

Crowdfunding is changing the economic landscape. This latest wave of disruption to investment and finance may be the most profound and beneficial so far – or ever. So it’s imperative for financial advisors to learn about how the meteoric rise of crowdfunding opens access to new sources of funding via these new, more broadly accessible internet-based funding models.

If you serve as a financial advisor or financial service provider, understanding this paradigm shift for the economy will put you in a position to provide insights, advice and leadership to your clients and those around you. Sources for practical, hands-on crowdfunding information are emerging. (more…)

Offer your customers a choice with PIN and signature debit options at the point of sale. The more payment options you offer, the more customers you can attract.

Linked directly to customer checking accounts, debit cards are one of the fastest growing payment methods today. First Data offers debit processing with signature- or PIN-secured debit cards so customers can access cash, buy goods and pay bills.

You’ll be able to provide customers with a quick and secure way to pay and have the ability to offer cash back with a purchase. For the customer, this means time savings with fewer trips to the ATM. We have a wide range of debit acceptance POS equipment options for you to choose from. Did you know that PIN debit can be less expensive to process than credit cards? So you may save money while offering your customers the payment options they want. (more…)