Business Financing Tips
Entrepreneur and SCORE mentor Steve Bloom shares exclusive tips on managing your business' financing and cash flow.
What are 3 ways to increase cash into the business?
Are there other financing options that are particularly attractive in today’s financial environment?
Accounts receivable funding, or factoring, can help improve cash flow, but be careful about using it as interest rates are dependent on your customers’ credit, not your own. For small loans of say, $500 to a few thousand dollars, peer-to-peer lending is a good potential source. I’m also a strong proponent of the SBA’s microloan program, which can provide short-term working capital.
Are government grants a viable option for small business owners?
There is no free money. You need to research and explore your financing options. The SBA supports several programs for getting loans or lines of credit. You can also consider friends/family investing, bank loans and your own deposit of owner equity. SCORE offers several free, online financing workshops that will get you started on the right path. A SCORE mentor can also answer any questions.
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