Small Business Finance: What You Need To Know   Happy to associate with SeekCapital that provides consulting services and funding procurement to small businesses in a quick and efficient manner. This article originally appeared on seekcapital.com by Jon Zacharias.    Starting and running a small business without having some form of credit is nearly impossible. Many small businesses do not make it simply because they’re under-capitalized. One month where sales and expenses budgets cannot be met could signal the end for business that could otherwise have succeeded. Others find themselves unable to grow their operations owing to insufficient access to the necessary funds. The answer may appear to be simple: get a loan and grow your business. However, getting a small business loan isn’t always easy.   Tips for Super Organized Small Finances   Pic Courtesy: Solopreneurdiaries Getting a Bank Loan Since the recession, the FIDC has ensured that small businesses who apply for loans are subjected to very close scrutiny. The Dodd-Frank act of 2010 has effectively limited the possible sources of funding for small business. Many analysts feel that in doing so, economic recovery was slowed. Whether this is true or not, small businesses in need of additional capital often find themselves unable to secure conventional bank loans. But is a conventional loan best for your business? The convoluted application process takes a great deal of time and effort and few loans are granted. In addition, repayment terms are highly inflexible. Small businesses are increasingly turning towards alternative lenders in order to get the business finance they need quickly, successfully and under less onerous repayment terms than banks allow.   The SBA 7A Program   Pic Courtesy: Fundera   Getting the Small Business Administration to guarantee all or part of a bank loan might sound like a great idea in theory, but the program has been widely criticized for its limitations. Once again the application process is complex and lengthy and not all businesses can afford to wait up to three months to get finance approved — if it’s approved at all. Then too, the SBA isn’t actually offering the finance itself. The small business entrepreneur still has to work through a conventional bank and banks remain reluctant to supply credit to small businesses. By 2011 a Gallup survey found that although 88% of businesses had access to credit, only 29% were lending from banks despite the SBA program. Read On: Getting Out of Debt  For Good Using These 7 Powerful Tips What Banks Don’t Take Into Account The main problem with getting bank loans is that banks want to see guarantees that you’ll be able to pay back the money. That’s fair enough, but instead of looking at how good your business’ chances of success are, they look at financial history. That makes things difficult for a newer business that doesn’t have the track record banks are looking for.     Remember, banks aren’t investors, they’re lenders. If the business or its owners don’t have the kind of credit history they’re looking for, they won’t issue the loan. Nowadays, financiers can use algorithms to project business income, but banks don’t use these tools when deciding whether you’ll get a loan.   Other Financing Options Getting finance fast, especially startup business loans, can be crucial to the survival and growth of small businesses, especially startup business loans. Since the banking sector isn’t making things easy for them, small business owners are increasingly turning to alternative sources of finance that offer them faster turnaround time, rate their creditworthiness based on the business itself and offer plans with flexible repayment options. Merchant Cash Advances Businesses that handle a volume of over $5000...

If you own a small business, then you’re probably no stranger to cash flow issues. In fact, 21% of businesses claim that cash flow problems were significant issues, potentially leading to closing down. One of the best ways business owners can ensure success is by carefully managing cash flow. Because no matter how great your business plan is, your business won’t survive if you run out of money. What Causes Cash Flow Problems? Before you can get a handle of your cash flow issues, you have to understand why they occur. Here are three common reasons why cash flow problems may arise: Unnecessary Spending Many business owners have head the old adage that you have to spend money to make money. Unfortunately, this belief has caused many ambitious business owners to overspend. Not all business expenses equally as important to your operations. Consider the cost-benefit of each expense. Overestimating Future Earnings Optimism is a great trait but it needs to be paired with a healthy dose of objectivity. It’s important to forecast your sales based on previous earnings and data. By not counting on future earnings that may never show up, you can prevent overspending. Inconsistent Sales Some businesses have occasional spikes in sales followed by months where they sell next to nothing. Trends like these cause problems with budgeting and makes it difficult for business owners to make operational decisions, often choosing to survive off of their “good” months. Get started with Flexible Funding today! Flexible Funding provides payroll-funding solutions in addition to back and front office support services as well. Flexible Funding works with staffing companies to implement the right staffing-industry software solutions for each client’s unique needs to create the best solutions and to save you time and money -from off-the-shelf accounting packages like QuickBooks and Sage 50 Accounting to in-house custom-built financial accounting software tools. Whether you are a start-up or an established staffing agency looking for best business practices, Flexible Funding will find the right solution for you– from payroll and invoice processing to W-2 preparation and filing, background checks, custom reporting, and so much more.   Tips for Avoiding Cash Flow Problems Cash flow problems are a reality for nearly all business owners but there are ways to manage them. Here are five ways to mitigate your cash flow issues: 1) Take Out a Short-Term or P2P Business Loan A short-term business loan can provide the capital you need to run your business and pay for any expense, from inventory to office furniture. Short-term business loans have a high rate of approval even for businesses with limited credit history. You’ll receive the money faster than you would if you took out a traditional bank loan, which can be extremely helpful if you have immediate needs. Sometimes the application process can take as little as 24 hours. One of the first places to check for business loans as a business owner would be Small Business Administration. Or, if you prefer to bypass the government, you can try a peer-to-peer business loan. These loans are funded by individual investors through a lending platform. However, these loans usually require more frequent payments, and you will likely end up with a higher interest rate. 2) Use a Working Capital Loan Working capital loans can give you the cash flow to cover crucial operational costs like rent and payroll. This gives you the flexibility to invest in your company’s growth and still cover day-to-day expenses. Unlike other business loans, working capital loans don’t require that you state your reasons for taking out the loan. However, you will have to repay this loan quickly and your loan may have a...