Funding a small business is an on-going challenge and one that keeps many entrepreneurs up at night. Let’s talk about one aspect of funding that can make or break your business—using credit wisely.
Many small businesses use credit cards to fill in shortages of cash but did you know that this is the most expensive money to “borrow” because of their high interest rates? If finance is not your strong suit, you need to talk to experts who will advise wisely on this critical facet of your business. The Women’s Venture Fund can help you develop a better approach to managing your cash flow through a series of consultations that will show you how to build your cash reserves, when to apply for a loan and how to get your business to the next level.
Consider applying for a business loan
If you’ve been turned down in the past by a traditional lender–a bank or credit union–there are community development financing institutions whose sole purpose is to make funding available to minority and underserved populations in their communities who are small business owners. These alternative lenders, of which Women Venture Fund is numbered, don’t just rely on credit scores and are willing to work with potential borrowers seeking micro loans to improve or establish their credit worthiness.
If you have questions regarding funding your business or need financial advisory services, please give us a call at 212 563-0499.
For start-ups: Managing cash flow
Are you faced with the problem of delayed payments from customers? Make sure you’ve done all the right stuff in the first place such as promptly billing your customers upon delivery of services; setting up payment terms with vendors and customers; following up on non-payment on a regular basis; and insisting on pre-payment from new customers.