There are two golden rules to operating a small business.
Rule number 1: It always costs more!
Rule number 2: It always takes longer!
These rules are as sound today as they were over thirty years ago when I learned them from a mentor after starting my first business. Not only have they proven accurate in my own experience, but are equally true for virtually every small business owner I have come in contact with at my business funding consultancy firm ever since.
When operating a small business, today more than ever cash flow is king and in one way or another, every significant business problem that challenges entrepreneurs involves cash. Entrepreneurs who are disciplined and determined about earning, collecting and protecting their company’s cash flow are going to stay in business longer than entrepreneurs who don’t appreciate its almighty significance to sustainable business operations – that is until it’s too late.
Emergencies, shortfalls and unexpected opportunities often come at a moment’s notice. When they do, immediate access to cash is critical to protect your business but is not the time to begin the search of securing additional funds. Having access to a line of credit should be in place long before it’s needed. Think of it as “Cash-Flow Insurance” but without the monthly cost. You hope you never need it, but happy to have it in place if you do!
In this new economy, even healthy businesses seeking capital are being turned down by banks and traditional lending sources but it doesn’t have to be this way. Short term business loans, credit lines and business cash advances for any purpose are available with no up-front fees, financial statements, tax returns or collateral required and can be arranged based on the true strength of the business… it’s cash flow and sales volume… not it’s paydex or business owner’s personal credit score!
Most small businesses can see approvals for as much as $250,000 completely unsecured, in as little as 48 hours with access to cash within 3 to 5 business days thereafter, meeting almost any cash flow need with convenient payment terms, regardless of personal or business credit scores. Just like a line of credit, funding can be set up with minimal paperwork (only a few months bank statements are required) with availability increasing after every payment made that offsets the initial funds received.
As any small business owner will attest, running your own business can be challenging and rewarding but stressful if the working capital on hand is not sufficient to expand, make payroll, pay rent, cover taxes, meet a shortfall or take advantage of a buying opportunity.
Having access to cash is critical to every business owner because… it always takes longer and always costs more!
Mike Gerson is an entrepreneur and small business finance expert with over 30 years experience. Articles have appeared in INC magazine and numerous publications nationwide. He co-founded a financial services firm generating over a Billion dollars in loans, is licensed by the ST of FL Office of Financial Regulations, is a member of the National Ethics Assoc. and President of Gerson Funding 1-800-528-3163