Credit Context Financial Advisory

  Why Is My Business Making Money but I Still Have No Cash? You look at your sales numbers and feel good. Revenue is growing. Customers are buying. The business appears busy. You may even be showing a profit on your financial statements. So why does your bank account still look empty? This is one of the most confusing financial problems business owners face. You can have a profitable business and still struggle to pay suppliers. You can increase sales and somehow have less cash available. You can have more customers than ever and still feel like you are constantly waiting for money to come in. This is not necessarily a sign that your business is failing. It may be a sign that you are looking at profitability and cash flow as though they are the same thing. They are not. Understanding the difference between profit and cash flow can completely change how you manage your business. Profit Does Not Mean Cash in the Bank Imagine your company sells $100,000 worth of products or services d...

  How to Prepare Your Business for a Bank Loan If you are thinking about applying for a business loan, preparation can make a major difference. Many business owners wait until they urgently need funding before they start preparing their financial information. By that point, they may discover that their financial statements are not up to date, their cash flow is difficult to explain, or they do not have a clear forecast showing how they will use and repay the financing. Preparing your business for a bank loan before you submit an application gives you time to understand your financial position and address potential weaknesses. Whether you need financing for expansion, working capital, equipment, inventory, a new location, or another business investment, understanding what lenders look for can help you approach the process with greater confidence. What Do Banks Look for When Approving a Business Loan? Banks want to understand the financial strength of your business and the likelihood...

  How to Find the Right Financial Advisor for Your Small Business Running a business means making financial decisions almost every day. How much should you spend on marketing? Can you afford to hire another employee? Should you take out a business loan? Is your company actually profitable? How much cash should you keep in the business? Should you expand? As your business grows, these questions become more complicated. An accountant can help you keep your financial records accurate and a bookkeeper can help organize your transactions, but many business owners eventually need something more. They need someone who can help them understand what their financial information means and how it should influence their decisions. This is where a financial advisor for small business can provide significant value. What Does a Financial Advisor Do for a Small Business? A business financial advisor helps management understand the company's financial position and use that information to make better...

  How Can I Tell If My Business Qualifies for a Loan? If you own a small business and are considering borrowing money, one of the first questions you may ask is, “Does my business qualify for a loan?” The answer depends on several factors. Lenders generally look at the financial health of your business, your ability to repay the loan, your credit history, your existing financial obligations, and the overall strength of your business. The good news is that you do not have to wait until you submit a loan application to find out whether your business is financially prepared for financing. By understanding what lenders look for, you can assess your business loan readiness and identify areas that may need improvement. What Do Lenders Look for in a Business? When a lender evaluates a small business loan application, they are essentially trying to answer one question: Can this business reasonably repay the money it is borrowing? To answer that question, lenders may review several areas of...

  How to Get a Private Loan for Your Small Business Getting financing can be one of the most important steps for a growing business. Whether you need capital to expand, purchase equipment, hire employees, manage cash flow, open a new location, or take advantage of a new opportunity, finding the right business loan can make a significant difference. Many business owners, however, are unsure where to begin. They may ask, how do I get a private loan for my business? What will lenders look at? How can I tell whether my company qualifies? What financial documents will I need? And what can I do if my business is not yet ready for financing? Understanding the process before approaching a lender can significantly improve your chances of obtaining the financing you need. What Is a Private Business Loan? A private business loan is financing provided by a private lender or financial institution rather than through a traditional government backed lending program. Private business financing can...