Reviewing Old And New Basics For Working Capital

Reviewing Old and New Basics for Working Capital

by

Allan Michael Taylor

One of the best current examples of why it is so important for small business owners to place a high priority on “getting back to the basics” is offered by increasingly limited working capital options. When businesses are faced with difficult financial circumstances, a simple common sense solution will often be more effective than a more complicated approach.

Improvements should always be welcomed by commercial borrowers when reviewing their cash management and working capital financing options. Some common advice for many complicated problems is often a variation of “it is time to get back to the basics”, and working capital loan options represent an ongoing illustration of this wisdom for small businesses. Looking at whether it is feasible to decrease overall bank financing is certainly a potential cost reduction that should not be overlooked. For almost all business financing services, many banks are increasing their fees. To avoid some of the inflated bank fees altogether, businesses should increasingly try to reduce their business debt levels. When this is not practical, the option of firing a current bank and replacing them with a new bank charging more reasonable fees will need to be seriously considered. Credit card processing is always a significant cost to evaluate when exploring business expense reductions that will help resolve a mismatch of income and costs. Certainly there will be those who say that this is easier said than done, and it is appropriate to emphasize that this process should involve the close involvement of a small business finance expert who is familiar with all aspects. This is frequently an expense area that is overlooked because the credit card processing provider was chosen for convenience or perhaps because they were recommended by a banking or other professional relationship. Analyzing alternative providers in conjunction with obtaining a merchant cash advance is one of the most practical methods for reducing this cost. Two cash flow benefits can be achieved by receiving business finance help while simultaneously reducing a major cost by combining efforts to obtain additional working capital (via a business cash advance) with a change of processing services. Business finance options can no longer be taken for granted by any business owner because of the recent ineffectiveness that prevails with commercial banking. The entire process of reviewing “working capital finance basics” will help businesses conclude how other commercial finance options are likely to be more effective in resolving their predicament than a traditional bank solution of taking on more business debt to resolve financial problems. Small businesses will quickly realize when they review working capital management and business loan basics that the most effective small business financing sources have changed during the past few years. Primarily because the active role that banks have traditionally played in providing both working capital loans as well other forms of commercial loans has been quietly stopped or significantly reduced, commercial borrowers might need to be alerted that there are both “new basics” and “old basics” for most small business financing situations.

Steve Bush and AEX Commercial Financing Group are a reliable source of

working capital loans

– Steve has offered commercial mortgage loans, business cash advance services and

business loan options

for 30 years

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