Business Loan Options Blog

No matter how long you have been a business owner, there are probably some areas of the company’s finances that could use improvement. Everything from filing systems to computer software can have a big impact on the whole financial situation. By choosing to follow a few tips on getting your finances in order, you can save yourself a large headache.

You never know when you may need to check into something, whether it has to do with a past bill, a customer invoice, or even tax records. Keeping your business financial records in order and up to date can help you save a lot of time.

In addition, you can help to identify and resolve any discrepancies in financial statements by always being aware of them.

You can start by having a designated spot for all mail that comes in. One easy way to overlook a bill, miss a payment, and face hefty fees is to lay mail in various spots in the office.

If you have one mail area, like an inbox or a file, you will always know where your bills are. You will be able to sort through them quickly and pay your bill on time, instead of having to play a game of hide and seek with a lost credit card statement.

Make sure that anyone who may check the mail for your company knows to always place everything in the designated area. In addition, make sure that you leave yourself time to go through the mail once a day.

Take the time to read your mail. When you are busy, it may be hard to stop for a moment, but you may be surprised what you see, especially on credit card statements. Companies may raise interest rates or charge you an undue fee. If you do not catch these things and inquire about them immediately, the company may not be willing to reverse the charges.

Always look at your mail instead of just making payments. You may be paying in hundreds of dollars that you were not aware of, simply because you have not been reading your mail.

In order to streamline your business practices, there are plenty of programs and systems available. For example, you can use a computer accounting program to keep and reconcile your checkbook.

The truth is that, when you are busy, mistakes can happen easily in a checkbook register. By using a computer program, you will be able to keep up the register without ever trying to do calculations in your head.

In addition, many computer programs can integrate with your small business accounting software so that you can keep up with expenditures, income, employee pay and inventory all in one place.

If you are considering using a program of the sort, make sure to speak with your accountant to find out what information the software needs to record and track in order to handle your business taxes each year.

Take the time to look through all of your financial accounts. If you have accounts that you no longer use, go ahead and close them. This way, you will not have any lingering fees or yearly dues on accounts that you do not even use.

Make sure to use one bank for all of your accounts. While many businesses choose to keep their payroll and their expense accounts separately, this could open the door to discrepancies and errors. Instead, use one financial institution for all of your business needs.

Choosing to be loyal to one financial institution can also be helpful if you need a business loan. The institution will already be aware of your financial history, and the loan process may go much smoother since you are a dedicated customer.

Make sure that you meet with your accountant at least once a year to discuss taxes and your plans for the next year. This way, you can make sure that the records you are keeping are sufficient, and you can make any alterations needed before the next year even starts.

Your accountant will be able to discuss with you ways to streamline taxes and cut costs so that the process will go much easier and you will not have to spend the whole year dealing with your taxes alone.

Above all else, make sure that you have a filing system that works. A surefire way to run a disorganized business is to not have a system for filing and tracking all information. If possible, keep all files in one location and not scattered throughout the business. Even if you need to set aside one small room for filing, this can be helpful.

Make sure that all documents are filed immediately after you are finished with them. Do not start a “to-be filed” stack, because it can end up reaching the ceiling before you know it. Instead, set aside some time to do all filing, or have an employee whose job is to file at least once a day.

By following these few simple steps, you will be helping your businesses organization immensely. This will directly affect your finances and your taxes, since you will always know where everything is.

When you own a small business, you know that there are times of financial hardship. Usually, these times grow and shrink based on the country’s economy, and whether you like it or not, you will most likely face cuts backs sometime in the life of your business. One of these cut backs can involve laying off employees.

While no one likes the idea of having to lay off someone, there are ways that you can handle it to help the whole situation become less stressful and frustrating. Before you face dealing with layoffs, consider this information. No matter how small or large your small business actually is, you will be better prepared for facing financial trouble with a little forethought.

Before you ever even have to consider laying off anyone, make sure that your employees know the situation. While you do not want to tell them everything about the business, letting them be aware of certain things is important. If you foresee the possibility of layoffs, let your employees know.

You can do so by having a companywide meeting. Explain that financial times are getting rough and although you will do everything you can to avoid it, you may have to lay off people soon. Although this will not boost morale, it will help to avoid blindsiding people when you have to cut their job.

During this meeting, tell your employees the truth. Let them know that there are problems and it may take a while before they get better. Do not make any promises you cannot keep. Make sure that they understand that you may very well have to lay people off no matter how hard you try.

Give your employees time to share their thoughts, feelings and concerns. You may have to fields some very hard questions, but it is important to keep an open line of communication at all times.

Remember that your employees have families and responsibilities of their own. Giving them a little heads up can save them from a financial crisis since they will have time to plan for the impending situation.

Before you have to lay off anyone, consider cutting salaries a little or stopping bonuses. You can save quite a bit by shaving a little off of everyone’s salary. You can also cut out bonuses and company retirement contributions for a short period. While this is a temporary solution, it just might be enough to get you through the slow time.

Employees may not like the pay reduction, but if you explain that it will help to keep the company from having to cut out jobs entirely, you will be able to help them understand. Keeping employees abreast of the business situation can go a long way, and by your being honest with the reasons behind your actions, employees will be more understanding.

You can cut costs also by reducing hours and overtime. If you have a lot of employees working overtime, do your best to eliminate this. While you legally have to pay the overtime when the hours are worked, you can explain to your employees that you just cannot continue to pay it without someone losing their job.

If possible, find ways to cut back on employee hours without making their own lives too much of a financial strain. Just as with small pay reductions, small hourly reductions across the board will add up to a large savings as a whole.

Make sure that through the whole process, you give your employees the chance to talk with you. Whether they need to rant about cuts in pay or they need to voice concerns about their job, let them. The more honest and open you are with your employees, the better the situation will end.

If you have done everything you can and you still have to lay off employees, there are certain steps you can take, and certain things to avoid, to make the process a little better.

Do not tell an employee to not take things personal. The bottom line is, any lay off is personal. You are dealing a heavy blow to your employee and it is going to be hard. Try to see things from your employee’s perspective and be aware of their feelings.

Make sure you handle the lay off in a private setting with no one else around. This will give your employee time to compose themselves before they have to face their co-workers. Give them time to say goodbye and to gather their things. If possible, allow them to stay until the end of the day.

Most importantly, offer any help you can. Provide them with information about how long their insurance will continue, when their last paycheck will process, and how to apply for unemployment.

Layoffs are difficult to face, and if you find they are unavoidable, being a caring and open boss can go a long way toward lessening the shock of the experience.

The last few years have brought on quite a bit of change to the economic and financial well being of our country. Unfortunately, the economic downturn is not just affecting big business. In fact, the problems may be causing more of an issue for the small business. If you are a small business owner, then you are most likely already aware of the problems.

A severe economic downturn can, unfortunately, be the death of small business, if business owners are not smart about how they handle the slowing market. Here, you will find a few tips on making sure your business is prepared for the highs and the lows of the country’s economy.

The first thing you need to do is to keep aware of the situation. You probably would rather just focus on running your business, but knowing what is going on throughout the country can give you a heads up on what may be in your future.

You will need to consider revising business practices. In tough economies, customers will not be as willing to spend as much. You may need to reevaluate your profits and determine where you can lower prices to help offset the drop in expenditures.

Make sure that your employees are always aware of the issues and problems the company may face. If you get your employees involved, they are much more likely to help you find ways to save without laying anyone off.

Changes and alterations should always be a part of business. Other than good customer service, be careful what you guarantee. Choose instead to include room for alterations in your company policies, and make sure that both employees and customers know that prices, policies, procedures, and business practices are all subject to change.

Remember, however that you could lose business by cutting things down too drastically. You will need to work to find an even balance between cost, offerings, and demand. The key is to not go too far in one direction or the other.

As the economy has always done in the past, there are sure to be peaks and valleys. The peak times can make a business seem invincible. However, the valleys can be detrimental. Do not be caught off-guard and your business can weather the storm.

Starting a small business can be a blessing and a curse. With the long hours and the risk of revenue swings, it can a stressful endeavor. Many entrepreneurs are well versed in failure and have had many ideas that did not succeed. These ventures are a learning experience and can help them in future situations. With the right idea, a startup can take off and make substantial strides toward success. Such is the life of Wes Hurt who now owns a successful small business in Austin, Texas.

With quite a few failures under his belt, Wes was able to start a business selling cupcakes which has grown quite well these past few years. At first, the concept was not well liked in town and his first location, a Sno-Cone stand, originally folded in 2007. His perseverance paid off after buying an Airstream trailer a few months later. With a location better suited to selling cupcakes, his idea began to catch on and he now has 27 employees as well as a brick and mortar location and a second Airstream trailer.

Many entrepreneurs in Wes’ situation take out business loans for situations like his, but he was able to save about $50,000 for this new venture, which got him on his way. There are merchant loans available as well to help with payroll costs and expansion that can be obtained online, regardless of credit. Wes is an example of a hard-working business professional with a great idea and the drive to complete his necessary tasks in an efficient manner. You too can start a small business with a little capital and the possible future use of business loans to sustain your venture through tough times. Even if you have no interest in cupcakes, you can fulfill your dreams of becoming a successful entrepreneur with the right idea and a fully established business plan.

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When you begin your small business, one of the first actions you will need to take is to set forth business policies and procedures. Many people overlook this and they only consider business policy when something is called into question.

If you wait to create the policies, you could run into a great deal of a headache. By preempting any problems or issues, you can maintain a professional business. This is true if you have two employees or two hundred.

If you are new to business ownership, you may be wondering how to even go about creating policies and procedures. The first thing you need to remember is to set forth policies for issues that do not even exist yet.

You are planning to grow your business, so instead of having to modify policies as you grow, start out with policies that may not even apply yet. This way, you will be prepared for future issues.

You can include anything you want in your policies and procedures manuals, but there are certain items that you will most definitely want to include. Here is a list of some of the most common items as well as an explanation of why they are important.

You will need a mission statement. The reason for this is to set forth a clear and concise reason for your company. This can be helpful in letting your employees know what they are working toward. You may also wish to display your mission statement to your customers, so they know what your business is all about.

You will need to include a section about employees. This should cover pay rates, evaluations, chances for pay raises, bonuses, vacation time, sick days, and holidays. If you go ahead and let your employees know what to expect, you can avoid any future confusion.

Go ahead and plan exactly what holidays will be given to employees and create an easy to use chart. Also, decide how many sick or vacation days they have. You will need to decide whether their leave is garnered on a per month or a per year basis.

Questions you will have to ask include: will the amount of leave they receive go up as they stay longer with the company? Will I have an emergency leave program available? What will I need to do as far as maternity leave? Answer these questions in your policies, since you are thinking of them, your employees will too.

Make sure that you set forth a consistent evaluation and bonus or raise schedule. Some companies choose to evaluate their employees once a year and offer bonuses or pay raises at that time. Others choose twice a year or even quarterly. Whatever method you choose, make sure it is in your policies and you stick with it.

If you are confused or concerned about what to include in your policies and procedures manual, speak with other business people whom you trust. Whether your company has a board of directors or you consult an outside source, it always helps to have another’s opinion, especially if they are experienced.

You may wish to consult a lawyer to make sure that all of your policies and procedures are legal, and that you did not leave any confusing and problem inducing loopholes in the employee section.

Once you have your policies and procedures completed, have someone else read through them one more time to look for discrepancies or mistakes. You may choose to give each employee their own copy, or you may wish to keep several copies in accessible places.

Have every current and new employee read the manual thoroughly. You may even wish to call a meeting so that employees will have a chance to resolve any questions they may have about the policies. This will also give you a chance to see if you need to make any revisions.

Anytime you hire a new employee, they should be required to read and understand all policies and procedures even before they begin work. This will offset any confusion or questions they may have.

No matter how much thought and time you put into the policies and procedures, you will need to take some time once a year to read the manual. You may find that, as your business changes, so do your policy needs.

Make any revisions necessary and hand out revised copies to employees. Any time that you need to make revisions, make sure that you note where the changes were made and confirm that every employee is aware of the changes.

It is too easy for an employee to get confused and think that an old policy is in effect, and it is too easy to just skip out on reading the policies when they are busy. You will need to make sure time is set aside for policy reading.

No matter the size of your business, thorough policies and procedures can be invaluable, and they can save you a lot of stress in the future.

There are times, when running a small business, where you may find yourself in need of extra funds. Whether it is to purchase a new piece of equipment or to deal with the slump that has hit out economy, quick cash is sometimes needed. You may wonder though, how to find sources without digging yourself into a hole.

Here are few suggestions on cash solutions for your small business. While they may not all be feasible for you and your company, one may stand out as the solution to your problems.

The first way to obtain a quick source of revenue is to change the way your customers pay you. If you allow customers to pay after they are billed or in installments, you may consider changing the arrangements to where the money in whole or in part is due at the time of service or sale.

Although this may not be feasible if the amount is very high, enforcing a partial payment up front in the very least can make sure you have a regular influx of revenue. If you allow customers to wait until they are billed, you could go for months without being paid.

You can also find ways to reduce your own expenses. You may choose to call any lenders or creditors and request lower interest rates or new repayment terms so that you can lower the payments each month. You can rework those payments later when business picks up again.

When you have no other choice, you can turn to borrowing. You will have several options with a small business. You may choose something as simple as a cash advance that will be paid back very quickly, or you may need a larger business loan.

In any case, if you make the decision to borrow, make sure you understand all repayment terms and fees of your loan and you understand the actual loan process. You will need to make payments on your loan in the coming months, so be prepared to budget in those payments as well.

Small businesses can feel the impact of the economy in ways that others may not. If you find yourself in a situation where you need to make adjustments and find means of extra revenue, consider these options.

With just a little careful thought and planning, you will be able to avoid the detrimental effects of a slow economy and make it to the other side. Be careful how your business is spending, and regulate your revenue for a healthy business format.

Is social networking just a playground for Millenials or can it really help you reach some business objectives? With all the talk about Twitter.com and Facebook.com, there is a vast number of experts who believe that social networks will be the new way to market online, but right now, it may be hard to see just how to achieve that aim. Believe it or not, social networking sites aren’t just a place to augment your contact list, it’s also a great place to find quality referrals for new hires, meet other business owners, maybe even capture a famous angel investor’s attention. How is that possible, you may wonder? It really isn’t that hard, as long as you know how.

The Magnetic Profile

The key to developing a social networking presence that magnetizes the right people to you is in the building of your profile. Take time to emphasize an authentic personality while promoting many of your business interests and activities. If people find your profile interesting, they will want to link up to you and that is a great way to meet new people.

Expose Your Private Brand

Your profile and who you are is the private brand you have on a social networking site. You will need to go to online groups and discussions that are taking place on the social networking site, blogs, and social news sites to expose your private brand to others. As long as you are genuinely contributing to the conversation, people will want to get to know your more and will link into you.

While You’re Networking

Keep an eye out for talent on these sites. It may be that a quality you need in a new hire is really hard to find locally, but not so hard online. Take advantage of social networking sites to spot new talent and see where they are congregating. When the time comes to hire you will have a ready list of people who meet your qualifications without having to hire a recruiter or human resources manager. What’s more, you will have a chance to see how they socialize with other and whether their life views fit in with your business culture.

A Chance To Meet The Publicity Shy

Famous angel investors don’t advertise themselves. Everyone would love to know who they are and how they can get a hold of their money. They are often on the lookout for good business propositions and many will be online checking people out. You may never know where your next business partner or investor comes from, but social networking can definitely help to widen the number of people who might meet this profile. In a world that gets smaller with every new contact, which leads to six more close to the big cheese, you increase your chances of stumbling onto the right person to help you further your business objectives just by being willing to have an online social presence on a social networking site.

The budget crisis in California has a few business owners wondering how they’ll survive when the government starts issuing IOUs instead of cash to its state vendors. The IOUs are a temporary stop-gap to keep the government operating while a new budget is hammered out. By October, they are supposed to be paid in cash with interest, but between then and now, many small businesses will be wondering how to cover the shortfall in ready cash at hand. Other types of credit will be essential to keep some businesses open, with many seeking alternative forms of financing, or some form of insurance, to get cash loans today in preparation for the arrival of tomorrow’s IOUs. These IOUs represent a large risk to small businesses in California who are already cash-starved and customer deprived due to large level of unemployment and defaults in the state. Some businesses will have to shut their doors upon receiving an IOU while others have negotiated with their banks or creditors to help weather the storm.

A Domino Effect Of Crushed Finances

Many businesses who have avoided credit all together and relied on a healthy balance sheet are finding that the bankruptcy or disruption of their customer’s finances can also crush their businesses. Lending is tight and unless there are advance preparations made to weather a large shortfall of cash due, if a state fails to pay its bills or a large customer defaults, the risk to a small business is high. Without sufficient credit history, even a cash-rich business can find itself falling from the weight of someone else’s misfortunes. While California’s solution of IOUs is unique to that state, the possibility of having a large account receivable go unpaid totally or at least for a long period of time is quite high during this recession.

Learning From California’s Example

Credit insurance is the type of insurance that business owners can get prior to finding out that someone is not paying them or will be paying them significantly late. There are all manner of policies out there that can be obtained, from insurance against a customer’s bankruptcy to even delays due to political decisions. The insurance can be costly, but there are ways to reduce the cost. A business owner can do a single transaction credit insurance for a particularly high income transaction that would have a devastating effect if the account receivable was not paid or paid late. They can also choose to get insurance on a particularly risky customer or all their customers. Credit insurance is becoming more popular as a way to offset the risks of doing business in an uncertain economic landscape, when even “too large to fail” entities have failed overnight. If the default of one of your customers is going to impact the survival of your own business, it’s time to take a look at your insurance options. In a time of great uncertainty it can be something that helps you sleep at night.