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The 5 Silent Killers of Cash Flow

November 14, 2019
By Cheryl Abrahamson –

Silent Killers of Cashflow

In an economy where the stakes are increasingly high and cash progressively scarce, business owners must proactively manage the balance sheet and income statement or risk falling victim to the five silent killers of cash flow.

Did you know that a majority of businesses that file bankruptcy reported a net profit, yet had negative cash flow? Often the warning signs that a company is in trouble go unnoticed until it is too late. A business can improve its liquidity and create long-term viability by looking closely at the following potential trouble spots.

1. Mis-Financing

Mis-financing is defined as borrowing short-term debt to pay for long-term assets. These assets could include purchasing equipment, leasehold improvements and other fixed items, paid for with a short-term line of credit. This process drains the cash out of a business and condenses the time-frame the asset has to pay for itself. (more…)

Is There a Credit Karma For Businesses?

October 22, 2019
By Connor Wilson

Nowadays, when people think of credit scores, their minds often go to what they see on America’s best friend: television. Even without seeing a single commercial for a free credit monitoring service, most if not all people know that credit scores are important, and something to be watched and taken care of. They are, after all, your lifeline to some of life’s biggest milestones, like buying a home, paying for college or getting a bigger boat than your loudmouth neighbor.

From my time working in personal lending services, it became very clear that Credit Karma in particular has done quite the job getting into the minds of Americans. Almost daily I’d hear people mention what their latest credit score was according to Credit Karma, and either the confidence or doubt that came with it.

While everyone has a personal credit score and should definitely check it, business owners also have a business credit score. With that in mind, is there a Credit Karma for businesses? (more…)

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…)