The Liquidity Squeeze – Small Business Financing and Sub-prime Loans

As news of the continuing problems in the sub-prime mortgage markets spreads, most people do not expect to be affected by it, since they do not have a sub-prime loan. Business borrowers especially may be wondering how problems in the residential markets could impact them, “How could someone else’s bad home loan impact my business?”

What has happened? Almost everyone knows this part of the story by now. Throughout the housing boom, some residential lenders attracted “sub-prime” borrowers to the table with low, adjustable rates. The residential lenders then assembled them into packages and sold them in the financial markets as securities.

As the fixed periods of these rates ended, the recent increases in rates (as an example, the Federal Reserve raised its key rate for 17 straight quarters from 2004 to June 2006 – from 1% to 5.25%) drove their home payments beyond their ability to pay. Although many of these borrowers were able to re-finance with fixed-rate mortgages, too many were not so lucky. Combined with a slowing housing market, these home-owners found themselves stuck in a mortgage that they could not afford. This has led to the “sub-prime meltdown” we are all hearing about.

So, what does that have to do with the lease on my forklift or the re-financing of my warehouse, asks the entrepreneur? Well, over time, the financial markets have become globalized – like every other market. Many of the same investors who bought those sub-prime mortgage securities buy securities in commercial loans or invest in private lenders or equity firms. Now, these funding sources have become skittish and are wondering if they should hold on to more of their money – just in case something else is going to happen. Also, as the sub-prime securities exceeded their expected levels of default and investors stopped buying new securities, lenders were left with billions of dollars of securitized mortgages on their books and were unable to flip them to replenish their funds for new loans – residential or commercial.

That means a decrease in supply and, as all of you business owners know, that leads to increased prices. Also, as with many markets, there is sometimes a “knee-jerk” reaction to raise prices because everyone knows you raise prices in this kind of situation. This is causing what many economists are referring to as a “liquidity squeeze”. A “liquidity squeeze” is where the riskiest borrowers are cut out of the market.

What is next? Well, there are two main paths that this could take – bad and good – with varying levels of pain for everyone. The bad path is that the sub-prime problem is more massive than anyone can foresee, that millions more are on the verge of foreclosure, and that we go from a “liquidity squeeze” to a “credit crunch”, which is where no one can get a loan.

The good path is that this is a temporary bump in the financial markets and that once the dust settles and everyone sees that there are not anymore shoes to drop, things can return to normal (normal being pre-boom with stricter underwriting standards) and rates will come back down some (there will still be less money out there and its owners will be more risk adverse).

Which will it be? That is a tough call for experienced economists, but the consensus of what I am reading and hearing from them in person is that we will follow the good path. Based on their arguments, I am going to come down on the side of the optimists in this case.

Why? The optimistic economists are pointing to a number of factors: 1) the global and US economies are still strong overall – in the US, inflation is low (though not low enough for the Fed to be excited about cutting rates, although that may be changing, growth varies from moderate to strong, and employment is high; 2) the Federal Reserve has room to reduce rates if necessary to improve liquidity; 3) estimates are that a significant number of the sub-prime borrowers were able re-finance their mortgages; 4) as a percentage of the overall, global financial markets, sub-prime residential securities are a relatively small segment (according to Ken Goldstein, an economist for the Conference Board, in a recent article, sub-prime makes up only 10% to 15% of a $10 trillion mortgage market and of that, only some 15% is at risk); 5) a portion of these sub-prime borrowers were investors with multiple loans who were stuck with too much inventory rather than primary homeowners; 6) although everyone is in agreement that housing sales will slow, many of the construction job losses associated with reduced housing starts have been absorbed by the economy; and 7) a total housing market collapse is generally triggered by people losing jobs in large numbers, which is not happening.

Against this, the pessimistic economists point to the impact that reduced customer spending from higher home payments and reduced home equity (thanks to substantial drops in home prices) will have on the economy. However, as one economist noted at a recent commercial real estate event, the economy was already moving out of the “consumer spending” phase and into the “business expansion” phase and is not as dependent on consumers to keep it going. He mentioned that the “massive” drops in the number of home sales are just returning us to what were considered great levels prior to the boom (i.e. we have been spoiled). Also, people need to be in fear of losing their jobs and not see their income growing to really cut back on spending. Neither of these is the case and the Conference Board recently reported that consumer confidence is at a six-year high.

What does all of this mean for your business? If we follow the path of the optimistic economists as I expect we will, this means that everyone is going to be forced to live with a spike in the cost of money for the short-term (probably three to six months) and real difficulty finding funding for less-than-perfect-credit businesses or higher-risk ventures until the markets calm themselves.

Deals that were tough to do two months ago may not even get out the loan officer’s in-box and even the easier deals will take longer to fund. Lenders will want to prove to their investors that they are doing all necessary due diligence and will be sure to tighten their standards. It will be more important than ever to prepare a good, clean package that contains no surprises.

As the market corrects in the long-term, there will be more news of sub-prime loan delinquencies in 2008 as another $500 billion+ of “teaser-rate” loans reset to market and it would not be surprising to hear that a few hedge funds and private equity firms have closed shop. However, these are now known problems and, unless there are more surprises, the market will adjust for them in advance.

You can expect interest rates to be higher than they were prior to the sub-prime problem on average (it is more likely that lenders and investors will price more appropriately for risk) and that the more stringent lending requirements will remain in place. It will mean a need to plan further ahead as deals will take longer to fund. The tougher deals will be possible, but they will pay more of a risk premium and face much more attention than many in that market have been accustomed to receiving.

However, we should move out of this “liquidity squeeze” and good deals with good packages will continue to move forward, albeit with a bit more scrutiny.

How to Get Business Financing in a Tough Credit Market

The credit markets have been tightening for the last year and personal credit has become more and more elusive. Now, more than ever, we are starting to see a tightening on business credit and loans offered by banks. Banks are tightening their standards and dropping more liberal business loan programs as well.

Just a few months ago, BofA offered an express business line of credit program that even entrepreneurs in business just a month or two could qualify for with the right credit scores. They pulled the program in the last quarter. American Express for years has offered a Business Line of Credit program that entrepreneurs could apply for in addition to their American Express credit cards. The line of credit was competitive in the industry with interest rates and most small business owners with an American Express credit card were getting approved. The program was pulled in the last quarter.

The closing of great programs such as the BofA Express Line of Credit and Amex Business Line of Credit are signaling the need for small business owners to find alternative ways to finance their businesses. There are several unconventional methods that most entrepreneurs can use to build up access to capital they will need from time to time. Some of these methods include: merchant account cash advance programs, equipment leasing, equipment sale-lease back, A/R Factoring and trade credit (also known as corporate credit or business credit).

Trade credit is the single largest source of lending in the entire world. It is when one business sells services or products to another business on credit terms. For example, when Dell Computers sells a laptop to a small business owner, the business owner is given a choice: pay now with a Mastercard/Visa/Amex credit card, apply for a Dell Computer line of credit or apply for a Dell Computer Credit Card. When the small business owner chooses to apply for a Dell Credit Line or Credit Card they are using trade credit. Dell will then offer terms to the applicants who qualify. Terms may include no-interest for 30 days if paid in full, or an interest rate charged each month a balance is carried and a small monthly payment that must be made on the credit card.

If the business owner has structured their company properly before applying for the credit, they will likely receive an approval based solely on the business credit profile, business credit score and how compliant the company is with the business credit market. If the business is prepared and built some initial business credit before applying with Dell, they will likely get approved regardless of what the personal credit score of the owner looks like. This is True trade credit (corporate credit), when you rely completely on the business’ ability to obtain the credit and not just that of the individual owner or officer of the company. Every entrepreneur should have a business credit profile and score. That includes also being in compliant with the lending market.

A business credit profile and score need to be created with all the major business credit bureaus, not just one. D&B (Dun and Bradstreet) is the oldest business credit bureau, although Experian Business and Equifax Business have created very competitive products and services to compete directly with D&B over the last few years. Most credit bureaus create a business credit profile and score when companies report to the bureaus the payment history of their clients. The more companies reporting to a business credit profile, the better. Companies who purchase a business credit report for analysis to determine credit approvals, like to see when others have granted credit already. They would prefer to see several credit accounts with the business, whereas with an individual you may find it more difficult to obtain credit when you have a lot of credit accounts.

Most small business owners seeking financing are looking for the money to purchase a product or service. The majority of time the product or service can be found through a company offering credit terms. Trade credit is used by household supply stores, marketing companies, printers, graphic designers, internet marketing companies, gas stations, equipment companies, auto-dealers, shipping companies, office supply companies, furniture companies and many more.

In addition to trade credit as an alternative financing option there is merchant account cash advance programs. Although this type of financing can be expensive it is still a great option for some businesses. This type of financing is for businesses with a merchant account charging more than $10,000 per month on the account. Many merchant cash advance companies will advance up to three months charges on a merchant account with very little personal credit information required to obtain the loan. The loan is then paid back out of future merchant account activity as a percentage of the total amount charged that month.

Another alternative source of financing is A/R Factoring. If a company has accounts receivable with other businesses with decent history and credit scores, a factoring company will come in and buy the receivables for a discount on the future value. The business gets money now and the factoring company waits for the invoices to be paid. When they are paid by the customers of the business, the factoring company gets their share and repayment on the advance.

A company can also use leasing as an option to finance their business. A lot of equipment and even software can be leased. There is extremely beneficial to start-up companies and those looking for large equipment purchases. The company doesn’t have to pay up front for a large ticket item, which than conserves cash for the growth and day to day operations of the company.

Small business owners need to get creative when it comes to building a business and finding the financing they need. Using trade credit and other alternative financing options just may help your business avoid the obstacles and pitfalls so many have fallen into and lost. For creative solutions for your business financing needs go to and get a free eBook on Building Business Credit for Business Owners.

Quantum Economics – Philosophy of the Economy – Corporate & Business Structures in Market Economics

The fundamental difference between Capitalism and Marketism is the approach toward personal liability of business structures: in case corporate structures; unless the Capitalistic corporate risk management’s very limited liability the Market corporate risk management personal liability is very enhance and is in the foundations of the Economics of Marketism. To limit the existing business specula and market insecurity business laws of Corporate risk management personal liability must prevent “shady” business practices and promote personal responsibility.

Lately, many medium size US Corporations are reducing ownership of physical assets such as infrastructure and even production machinery by selling these assets and leasing them back, they are also outsourcing manufacturing and going international: these new corporations are mostly becoming Intellectual property holders by mostly maintaining risk management and sales, therefore the accent in order to protect these corporations from long and expensive court time goes to:

Intellectual property laws to be enhanced, improved and so clearly stated thus shell be no difference between physical property laws and the intellectual property laws in the way they are applied by courts, therefore they the intellectual property laws have to be criminalized much farther these currently are

Business laws to be enhanced, improved and so clearly stated to become more like criminal code: thus providing medium to small businesses and individual investors with the powers to contest big businesses and big investors in court without spending a fortune: contract laws should be mandatory and carryon personal liability of the corporate management

A consistent pressure should be applied to all countries participating in the Globalizing market to accept the same business rules and laws. These actions will give to the medium to mall businesses and investors much more power to fight for their interests and the needed security to access financing, and consequently to expand their business. At the same time to protect markets from fraudulent activities and speculations their structures:

Should be “bonded” when they do business thus because of the extensive bonding underwriting fraudulent business will be limited Their risk management should be liable for their fraudulent activities under criminalized business law Business related fraudulent promotions, advertising, court statements should equally penalized. The same rules should apply equally to all participating countries and markets.

Consequently, when such business and corporate laws are implemented the “limited liability” under current laws obviously will not exist therefore corporate risk management will have full liability under these new business laws and such personal for these liability will expand from internally for US to Globally for the entire World Market.

This approach is needed for:

First, to provide a better business environment for all corporate participants independently of size, nationality or sphere of activities: thus to enhance their ability for being financed by improving their security.

Second, to provide a better protection to the consumers and markets from fraudulent activities.

Third, to allow a smooth Global expansion to many pore participants

Fourth, to raise profitability by this expansion and therefore allow Medium to Small Investors to generate return on their investment and thus add a new sector to the farming, manufacturing and service current sectors for generation of income that will allow expansion to the Monetary and Fiscal supplies.

Fifth, and may be the most important, it will allow better control over the Environmental protection.

Business Angels and Your Start-up Finance

Business angels fall under the category of equity finance. They form the most popular form of equity finance and can truly do wonders for your business venture.

When it comes to starting up your own business the most important thing to sort out before anything else is your start-up business finance. You will need funding for your business before you even start trading. No matter what type of business you are planning to go into, whether you are selling a product or a service you will need to secure finance before you open your business up for trading.

Funding for your business can come in many forms, ensuring that you choose the one that is best for your business is the tricky part so here’s some helpful advice. Most new business fail due to incorrect funding with many making the mistake of turning to their bank for finance only to find out that the bank refuses to give them the capital they need and with many more finding out the hard way that they can’t keep up with repayments, which ends with them losing not only their business venture but typically their house that they thought was a good idea at the time to use as an asset to their bank loan.

You’re probably left thinking now ‘what am I going to do?’ well lucky for you there are people out their waiting to give you money for your business start-up funding that you, wait for it, don’t have to pay back! Who are these kind people I hear you cry, business angels of course. A business angel is a high net worth, wealthy individual who has already made their fortune through other business ventures. They are often retired individuals who invest their skills as well as capital into new and developing businesses. Business angels invest money into your business that you never have to pay back in return for a growth share of your business.

Business angels typically seek investments that will give them ten times more back than their original investment within five years of your business being active. They invest their own funds and usually invest between £10,000 and £750,000.

As well as cash, business angels can offer years of experience in the business world. Although some prefer to become a sleeping partner, others will get actively involved in your business from writing a marketing plan to taking the company through a flotation on the stock market.

Business angels will invest across most industry sectors and stages of business development. They tend to generally look for the following within your business as a basis of whether to go ahead with an investment:

o The expertise and track record of the management

o Your businesses competitive edge or unique selling point

o The characteristics and growth potential of the market

o Compatibility between the management, business proposal and their skills and investment preferences

If you do decide to choose the help of a business angel within your business start-up funding then you must ensure that the angel you choose is right for your business needs. You should choose a business angel that is best suited to the needs of your business.

It is also important to keep in mind that business angels tend to mainly invest locally and within a specialised area.

Functions of Business Finance

Strength and soundness of business depends on the availability of finance and competency with which it is used. The abundance of finance can do wonders and its scarcity can ruin even a well established business. Finance increases the strength and viability of business. It increases the resistance capacity of a business to face losses and economic depression. It is just like a lubricant, the more it is applied to the business, the quickly the business will move. Following headings explain the importance of finance to business:

(1) Initiating Business: Finance is the first and fore most requirement of every business. It is the starting point of every business, industrial project etc. Whether you start a sole proprietary concern, a partnership firm, a company or a charity institution, you need ample amount of finance. It is equally important for profit seeking and non-profit activities. It is equally important for a multinational organization and for a free dispensary.

(2) Purchase of Assets: Finance is needed to purchase all sorts of assets. Even if credit is available some down payment is to be made. Mostly finance is needed at the start of business for the purchase of fixed assets. These fixed assets consume a large amount of initial investment of the entrepreneur, so he may face liquidity difficulty in running day to day affairs of the business.

(3) Initial Losses: No business attains high profit on the first day of commencement. Some losses are normal before the business reaches its full capacity and generate enough revenue to match cost. Finance is necessary so that these initial losses can be sustained and business can be allowed to progress gradually.

(4) Professional Services: Certain business need services of specialized personnel. Such personnel have rich experience in specialized fields and they can provide useful guidance to make business profitable. Nevertheless these services are costly. Finance is always needed so that services of such professional consultants can be hired.

(5) Development: Business is always exposed to change. New innovations and emergence of new technologies replaces old techniques out of market. So in order to remain in the market, it is needed to keep the business well equipped with all emerging tools and techniques. This required finance. New technology is always expensive as it is better than others. So finance is needed to purchase new equipment and keep the business running.

(6) Information Technology: Information technology has now changed the geography of the business battle field. The home markets have now extended virtually to other comers of the world. The whole world can be your customer or competitor. To face such a fierce competition, IT is needed. Skills and competency in IT can perform miracles. But finance is again the decisive factor. It is very much needed to incorporate expensive IT products in the business.

(7) Media War: The advertisement and promotion have now become a vital elements for the success of business. The way a businessman approaches a customer and convinces him to purchase his product has become more important than the quality of product. With advertisement on International media, a businessman can reach the minds of millions of people around the globe. However, advertisement is a luxury which every business can’t afford. Huge finance is required to meet advertisement expenses.

(8) Resource Management: Finance is very essential for efficient resource management. Resources here include capital and human resources. Maintenance of plant and equipment and training of employees all need finance. Establishment of new industrial units, expansion of plant capacity, hiring of well learned skilful laborers – all
these factors can lead to huge revenue but at the first place they need finance to start with.

(9) Stock Investments: These investments are those which are made to hold ample stock of raw materials in hand. Bulk purchase of raw materials is profitable in a sense that purchase discount can be attained and there is no danger of production halts. So companies most often hold huge amount of stocks and raw materials. But such an investment can be made only if a company has sufficient capital or finance to carry out its daily operation easily besides holding huge stock.

(10) Combating Risks: Everything is exposed to one or more risks. A business is also exposed to variety of risks. These risks include natural hazards, burden of any huge liability, loss of market or brand name etc. Finance is needed to make business powerful, so that it can sustain occasional losses and liabilities.

6 Simple Steps to Organize Your Business Finances So That You Can Sleep Soundly at Night

Loose papers, receipts, notes, credit card bills, financial statements, tax returns – these are the byproducts of owning a business. They take up space on your desk and in your mind and every time you look at the litter you feel disorganized.

Before I created a system to organize my business paperwork in the manner I’ll soon explain, I felt disjointed, out of whack, and like I never got anything done. I’d walk into my office and want to turn right around and walk out.

Is there a better way to organize your business finances? You bet. Follow the steps below to create a simple, yet functional way to organize your business and live a more carefree life.

Step 1 – Get a Binder

Purchase a three-ring binder based on the volume of paperwork you produce annually. A 1.5″ or 2″ binder would be adequate for most businesses. You will use one binder for each year you are in business, so that every detail pertaining to your business that year is in one place for easy retrieval. In the viewing window type a cover that shows the name of your business and the year.

Step 2 – Get a Three Hole Punch

Purchase a three-hole punch. This is to hole punch all larger receipts, documents and financial statements and have them fit neatly into your binder.

Step 3 – Get a Zipper Compartment

Purchase a plastic zipper compartment from an office supply store to hold small receipts.

Step 4 – Purchase Accounting Software

Get yourself accounting software so that you can track your finances. Professional business owners track their profits and losses using the right tools and analyze their financials regularly. I recommend QuickBooks, but there are others such as Peachtree, Microsoft Office Small Business, and Simply Accounting. Try to begin tracking sales and expenses from the beginning of your business or the beginning of the year.

Step 5 – THE SYSTEM:

Arrange paperwork in your binder according to month. Keep all receipts, credit card statements and bank statements (make sure to reconcile these monthly), and sales tax reports (if you sell products). At the end of each month, run a Profit and Loss Statement and a Balance Sheet (collectively known as Financial Statements). The Financial Statements become the separator for each month. File small receipts that can’t be hole-punched in the zipper compartment at the back of your binder.


At the end of each year, reconcile your accounts, print your annual Financial Statements, and close out your year. Put the binder away and start a new one for the New Year. Give your accountant or CPA a copy of your QuickBooks file to prepare your income tax return.


o Only handle receipts one time. Review them. Record them in your software program. File them in your binder.

o Use one credit card for business and one for personal expenses. This way you can maintain separate business and personal expenses. If you ever need to carry a balance, you can easily determine the tax-deductible interest.

o Consult with your accountant or CPA regarding what is and is not tax deductible.

o Make an appointment with yourself one to two hours a week to do your business finance organization. When you have room in your budget, hire someone to come in and do it for you.

The system above is one way to organize your business finances. If you would like to go beyond this system and organize your business for financial success, you may want to consider writing a Business Plan.

Franchise Business Financing

The dream of every entrepreneur is to open up a business or own and operate a franchise. There is nothing like being your own boss and owning a business of your own. There is something about being able to make your own decisions and creating your own vision that is quite satisfying.

For many individuals the ultimate job is owning your own place. The opportunity to create and open up a business of your own is closer then you may think. There is plenty of opportunity out there to enter the market place with franchises that already have a record of success and a good track record.

Instead of starting a business from scratch many individuals choose to purchase a franchise and utilize the “success” formula that has already worked for others. There is a long list of franchises that are available for the entrepreneur who is looking for that one great opportunity.

Of course, with a franchise comes the initial cost. You will want complete information on franchise business financing for your decision making. The best advice on financing comes from those who have the right information and the right experience. The process of franchise business financing can be difficult and tedious. You need to find the right help for the process. Lining everything up is crucial for the franchise business. Everything must be in order for you to make the franchise a success. It can help to avoid delays in any decision making and help to get your franchise off the ground quickly and effectively.

One of the possible ways to finance your new franchise is with your personal IRA accounts and with your 401 K money. This has been by many who are seeking financing for a new business. You can also turn to the Small Business Association (SBA) for help with finding money. They basically have three loan programs to help individuals with financing new businesses. These loans are easy to apply for and are government backed. You may be able to qualify for the Basic 7(a) Guaranty Program, the 504 Loan Program, or the Microloan 7(m) program depending on what type of franchise you are trying to purchase. These are all worthwhile program to investigate.

There are plenty of private financing program available as well. If you check the internet you will find many of them listed that are willing to finance new buyers of franchises. The application process and procedures will differ. There are also many magazines and books that are available to find financing for the new franchise owner. You will want to read as much as possible about the options that you can discover.

This is a great time to follow your dream of owning your franchise business and running and operating your own business. You will need help with the process of franchise business financing but you can find that help. Investigate the possibilities of being an entrepreneur and get all the facts. Your vision of a successful business is not that far away.

Some Options for Small Business Financing

One of the major problems with being a small business is that the business owner will invariably run into difficulty with the access to and securing of funds from commercial lenders who will be somewhat deterred by the lack of market presence of the business and so will be less inclined to issue a loan.

As a result then, this means that the potential growth of the business is effectively retarded outright, as without sufficient levels of working capital at its disposal, it cannot hope to grow, develop and expand to ensure that it attracts a sufficient portion of the available market to render it a successful venture.

Being a small business is a risky affair indeed, and the reason for this is that the market will already be controlled to varying degrees by those companies that are already firmly established within a community, and which have managed to cultivate a degree of goodwill among their customers. These companies have the advantage of a steady stream of income, thereby ensuring that they have good cash flow, which in turn means that they are fully solvent and as a consequence then, self-sufficient.

A small business on the other hand will need to actually prove their worth to both the lenders as well as the customers whom they are seeking to attract, although it should be noted that this is oftentimes, a task much easier said than done.

Regrettably then, the range of small business financing options that are actually available are very narrow indeed, and so the owner of a small business may have to make some very tough decisions as to what exactly they are willing to sacrifice in order to ensure that their business will increase and blossom as a whole.

One option that the business owner may want to seriously consider is the taking out of a small business loan. This would mean that the business would be able to get his hands on some much needed capital in a short period of time, without having to relinquish any control of it, and so once the loan has been paid off in full, then the company would not be committed to any more or further obligations.

This is of course, assuming that the business will be actually able to get access to a loan, which is a fairly challenging feat in of itself it should be noted. Another option is

Another avenue to explore is small business grants provided by the government. The government is fully aware of the remarkable benefits that small businesses will bring to the economy as a whole as it means that services are much more competitive which in turn helps to stimulate greater demand for associated supplies.

Venture capitalist companies are another option for small business financing, the only problem here is that they are rather demanding as to what they expect in return for their initial investment and so the business owner must be prepared to relinquish a sizeable portion of their company away.

How the Finance and Accounting Process Is Transforming?

The chief financial officers and business owners, nowadays, look beyond cost reduction. Their focus is on developing new revenue streams for their business. They want to make a significant improvement in their performance metrics, while lowering down the inefficiencies. Consecutively, they look to address regulations and mitigate allied financial risks with the growing regulatory norms.

The financial and accounting organizations can elevate the business proficiency of any organization, thus, entrepreneurs seek to meet the following challenges.

Entrepreneurs want to:

• Accelerate revenue growth and reduce costs, without giving any risk to a business
• Acquire a greater understanding over the performance metrics and course of a business, requiring an adequate support for the growth of revenue plans
• Sustain a profitable growth and make a better investment in people and innovation

How service providers can help?

Service vendors operate as an extending arm or technology partner providing finance & accounting services and handling financial functions spanning across the following areas:

• Accounts Payable
• Accounts Receivable
• General ledger management
• Budgeting and forecasting
• Reporting and compliance

The third-party vendors help enterprises manage the fiscal and regulatory risks, drive robust business execution at the best cost and assist a business empire to accelerate growth. Service providers help entrepreneurs to explore new markets and find methods to maintain a stance in the existing market.

The outsourcing procedure not only helps an organization to improve competitiveness, but also, drive efficiency through enhanced KPIs (key performance indicators).


Offers financial centers of excellence: to drive best industry practice and benchmark finance and accounting processes.

Integrates technology as a value proposition: to help entrepreneurs reduce process timelines, accelerate process productivity, simplify processes, increase accuracy as well as maximize the value of the existing ERP or enterprise resource planning investment.

Manages risk and assures compliance and quality: to build secure and reliable operations with independent risk management, compliance, and quality assurance for your operations.

Enhances business model: to help entrepreneurs get the full mileage from outsourcing initiatives, reducing costs, enhancing control and reducing process cycle time.

A service provider implements best industry practices to enhance the overall financial and accounting functions. Reputed service vendors build the credentials of a process to support the varied financial needs of an organization, with the help of a large pool of dedicated accounts team.

Outsourcing is transforming the entire finance and accounting value chain, by working on process improvement and offering value addition to the businesses. Service providers offer end-to-end services, ranging from routine services to high-end integrations, which makes the financial stature of an organization robust. The comprehensive suite of outsourcing solutions also include, niche services such as credit referral, revenue assurance, financial settlement and rent disbursement.

Getting To Know Business Financing

Because of the troubles we face due to commercial financing crisis secondary to the economic situation that the global market is facing, we need to evaluate some newer alternatives so that we can still find some funding for our business finance. There are two major working capital financing options that we could go for namely cash advances and the popular credit card financing. They are both proven to be effective and at the same time a practical solution for small business owners like you.

A lot of business owners utilize these credit card financing basing on the activity that they will have in the future for their credit card processing. Some people also use their personal credit cards where they get cash advance from and this is often called as the credit card loan. Because of the ongoing financial problems in the market, small business owners utilize both methods just to keep their businesses running.

Both financial options are viewed differently by financing experts but sometimes they are called with the same term some other times. A lot of commercial lenders cancel or reduce their business lines of credits as well as other types of working capital loans. This is the reason why business owners are forced to depend on the cash that they can obtain through their personal credit cards.

This is the reality that most business owners face and most of them just had to go through business financing just to keep their businesses alive. However, before you plunge headlong into this method, you are urged to review the lending discussions or policies involved so that you wouldn’t face more troubles than what you are facing today.

You should only go for personal business financing as a last resort and not as your first method of securing your operating capital. If possible, you should avoid using this method just to keep your business running. You should consult with a financing expert first before you assume that it is your only source of working capital so that you would know your other options.

Finally, you should keep in mind that lenders that are providing business financing are already cutting back on their unsecured programs.