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Oasis in a Cash Flow Desert - Four Resources That Increase Small Business Capital Streams


by Mark Uptain

Business Brokerage For small business owners, an enthusiastic vision for smooth, steady growth can become nothing more than a mirage once company cash flow problems begin to heat up. Most will struggle with the timing of payment from clients or customers at some point, all while attempting to pay their own bills in a timely fashion. With all of the best laid plans for rapid flowing cash streams evaporating down to just a gurgle in the ditch, the potential risk of joining the ninety-percent of businesses that fail within their first three years of operation becomes a very sobering possibility.

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Forex Broker Many of us would like to operate our companies the same way we do our personal lives. If we need a new lawn mower, we simply pull out the trusty credit card, sign on the dotted line and put off worrying about it until next month. Meanwhile, we enjoy the benefits of the new equipment, at least for the time being, without it costing a dime. Though in this way we may seek a certain gratification from owning our possessions, it's really just a trick we play on ourselves. The above "charge now, pay later" example doesn't really convey any kind of real, initial ownership. Instead, it's just a very common example of a direct loan. The credit card company facilitates a credit arrangement between you and themselves, and the proceeds of this extension are directly used and repaid by you, the borrower.

The company has consistently used its free cash flow (cash flow from operations less capital expenditures) generated from its operations to return value to shareholders. This is primarily achieved through share repurchases and dividends. For the twelve months ended December 31, 2006, the company paid $35.4 million of cash dividends to shareholders. The annual dividend rate per common share was increased 15% by the Board of Directors in September 2006 and is now $0.60.

Online Brokerage In business, however, whipping out the plastic to cover expenses is definitely not the best idea. Many have given in to this temptation, and are paying the heavy cost of damaged or ruined credit. And with that, their chances of digging out of the hole with other means of financing, which should have been sought in the first place, are slim to none.

Cash flow is running low When your cash flow is running low there are several solutions for you. Never feel like there are no solutions when your cash flow is no longer flowing like you would want it to be. Cash flow is the steady amount of income that a person accrues as a result of employee cash flow or any other cash flow source, such as disability or interest from other accounts. However, there are time when cash flow from your resources is not coming in regularly. There are many instances that can disrupt regular cash flow.

Real Estate Broker Thankfully, there are better, specially designed cash flow tools available for businesses that are beginning to feel the scorch of the capital income desert. Many business owners are unaware of these tools. Others that are aware fail to take advantage of them. All of them would do well to at least consider the following:

Getting that supplemental cash flow gets even easier. Once you have found our cash flow website, and have applied for the cash flow loan, then your ¾ of the way there to your cash flow pool. Just answer a few security questions from our friendly and helpful cash flow staff and you have completed the cash flow application. Now you can receive that extra cash flow in your bank account the very next day. Getting extra cash flow is that simple.

Agency Brokerage Spark Purchase Order Financing - Simply put, this tool is a loan against the future income of the business. It's designed primarily to provide the cash needed to pay suppliers and sales-generating business expenses while patiently waiting for clients to pay their invoices. Similarly, purchase order funding is utilized for the completion of existing orders by securing materials when working capital is running short. Once purchase order financing has been successfully utilized for some time, it usually becomes easier for the business to take advantage of more economical means of credit.

"Our phenomenal growth in the past few years has shown the important role email marketing plays in the growth and success of thousands of small businesses and organizations across the U.S., " said Gail Goodman, CEO of Constant Contact. "While we have been operating cash flow positive for the past two years, this additional capital provides us a tremendous opportunity to gain significant market share and expand our reach, given the readiness of the small business market."

Business Broker Equipment Leasing - With it's one-hundred percent financing, preservation of credit lines, tax benefits and the ability to avoid obsolescence, equipment leasing is one of the sharpest and most efficient cash flow tools a business owner can utilize. Paying a premium in order to own equipment can be a huge waste of money. What companies profit from is the use of equipment, not the ownership. Leases can be extremely flexible to meet the custom needs of each business. Therefore, both small and medium-sized companies can greatly benefit from them.

Brokerage Account Accounts Receivable Financing - This tool provides a line of credit secured by the company's accounts receivables. It is a strong method of financing for both short-term working funds and the permanent working capital requirements of businesses that are growing. The paperwork is considerably less involved than in more traditional types of business loans. It is also especially helpful in providing financing flexibility to firms that are growing rapidly.

Stock Broker Factoring - This is the sale, at a discount, of a business' accounts receivables. It is not based on the company's ability to repay the money advanced. Instead, it based on their customer's ability to pay what is owed. Once the factoring facility purchases the accounts receivables, they assume the responsibility for collection. It is not a loan, so neither the time in business, nor the company's debt to equity ratio are a consideration. A business has the freedom to sell only the AR that it chooses, and is not obligated to continue to do so. Factoring is an excellent source for additional working capital needed by both small and startup businesses.

Brokerage Online Stock Trading The descriptions above are general, and it's important to understand that there is flexibility and variation within each lender program. In order to get educated on the details of these types of tools, and to find which of them might be beneficial to your situation, talk to a professional loan broker or a commercial lender representative. He or she will explain the benefits of each, and help you decide which tools are right for keeping your business out of the cash flow wasteland.

Broker Justin Ticket Mark Uptain is the owner of Regent Business Capital, a loan and lease brokerage that works with lenders nationwide to help small and medium-sized businesses get financing. His website, www.EquipmentLeasingSource.com, offers free equipment leasing information and competitive quotes to businesses throughout the United States.

Real Estate Brokerage Mark Uptain is the owner of Regent Business Capital, a loan and lease brokerage that works with lenders nationwide to help small and medium-sized businesses get financing. His website The Equipment Leasing Source, offers free equipment leasing information and competitive quotes to businesses throughout the United States.

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