However, this requires business owners have the courage to be able to deal with challenges. So recently, surveys of launching a group of small business owners, American Express (Amex) has found that many of them are having trouble separating fact from fiction finance.
Take, for example, found that 34% Amex business owners surveyed believe that mistakes of term loans (funded immediately by maturity and amount) and a credit line (which is opened and closed when necessary) of a business is basically the same. And nearly 40% of them believe that the application of many lenders to raise capital is very good while the opposite is true because with a loan that has too many lenders, it can distract the your credit line.
With the framework of this article, we would like to briefly present five things you should know about the financial position to be able to help your business thrive in the future:
1. reinvested PROFITS ARE THE BEST
Hedge funds best for a business active is the amount that the company is actually created. Many entrepreneurs often miss opportunities to grow profit by using unproductive directions. Some are acting in the opposite direction, pouring money into any business project while not keep a dime. Both of these approaches can lead to bankruptcy. If you need a loan, banks will like you to pay that loan with a reasonable salary to be your acceptance. Similarly, banks also want to know the business can still achieve profitability whether to pay bank debts.
The profits reinvested in the business is the secret to get the long-term development success. This is the capital of "patience" to build enterprise value without debt or profit sharing with other partners. So, about 46% of business owners are American Express survey said they had planned to finance its growth by reinvesting profits.
2. USE OF CREDIT COMMERCIAL
Commercial credit process described deferred payments for goods and services that you purchase now from multiple vendors and various sellers. You can find plenty of sellers willing to sell on credit to a growing business - or even opened - rather than the provider if you can make a long-term agreement for the purchase from them.
And from my perspective, you will see commercial credit has also become one of the safest forms of business lending. Bank loans become endangered due to the periodic payments to pay despite low turnover. But sales drop may affect orders you have placed or not? This also depends on the level of your business credit has been down the same or not.
Just so has seen enough business credit can be valuable and easier than banks or other types of borrowing. In addition, it also allows you can split the payments and pay scattered over many months or even years without the pressure of fluctuations in loan interest rates.
3. EARLY data LIMIT
Time to set up a credit line is when you are likely to meet the requirements necessary to limit it, not wait until you need it later. Having a line of credit can help you grow your business by adequate financial resources to meet the opportunities ahead. In general, the credit limit is also very suitable for the use of credit card companies to follow the much higher interest rates and the increasingly onerous terms. But you should avoid using a credit line to bail himself out of trouble by those limits are closed when necessary and effective when newly reopened them for use next time.
4. EXPAND RELATIONSHIP WITH BANKS
If you have multiple accounts that just opened in a major bank, consider opening an account at another bank by region or community. This will give you more options in time to look for loans, line of credit or other credit support for their development plans.
5. CONSIDER ALTERNATIVE SOURCES LOAN
For more options, you can join the credit union legal, accounts receivable financing (factoring news) or lend "the same level". However, the form of loans at the same level (or by person) given in the economic downturn as the traditional lending sources no longer available, but instead is a new Internet site is currently making this form becomes easier and business owners can join and get the necessary loans.
