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Your Financial Habits Will Make or Break Your Business

Your financial habits will make or break your business Your business will become the management habit you have developed. Especially the habits around managing your business finances. If your financial management style afford you greater control over your business finances, you’ll have a higher chance of scailing-up your business and build a stronger business credit score. On the other hand, if you consistently find your business finances stretched, make the time to do a review of your finances and financial management habits. If you’re wondering “What kind of habits create a successful business?” From our experience, here are the 5 financial habits that can help you build a highly successful business: 1) Save Some to Win Some Why this is important: Just like your own personal savings, having a cash reserve is imperative to your business longevity so that you don’t get caught off guard by any situation. As you…

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8 Reasons Your Loan Application is Rejected

Getting your loan application rejected is a confusing situation and the reason vary from one business to the next. This article list 8 reasons why and the next steps you can take in the event of a rejection.

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Business Credit Card or Line of Credit, Which is Best?

Which is Better for My Business? A Business Credit Card or Line of Credit As the need arises for short term financing to meet immediate business expenses, you are provided with two seemingly similar options: a business credit card or line of credit. At first glance, they seem identical. Offering very similar benefits. However, as you weight these two options there is an important difference in their suitability to your business needs. Business Credit Card How it works: similar to your personal credit card, it is a revolving line of credit extended to your business with a limit set by your card issuer. You can only make purchases within the limit and repay what you used. The amount you haven’t repaid can be carried forward but there will be interest applied on it. Pros of a credit card Easy application: with business credit cards, the application process is often quick…

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3 Growth Strategies With Bad Credit Score

Will bad credit stop my business growth? 3 Key Strategies to Boost Your Growth higher liquidity Your liquidity (how much liquid assets your business possesses) will directly affect how much capital you can invest into your growth without worrying about your ability to survive the slow season. Additionally, should you need to secure additional financing to boost your growth, strong liquidity will improve your approval chances. Here are several ideas to help you improve your business liquidity: Upselling. Don’t overlook the revenue potential from selling your ancillary products. At first they might only provide a small boost to your revenue but consistent 5% to 10% boost to your sales per month will have a long run effect on your bottom line. Faster Collections. A high amount of receivables will become deadweight if your collection system is lax. Especially if you are operating in the B2B market. To avoid it, provide…

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The Small Business Year-End Checklist

The Small Business Year-End Checklist The year-end stretch holds the same importance as the start of the year. It dictates your next steps. Whether it’s a hectic or a slow period for your business, it’s important to take the time to make sure you get your ducks in a row in preparation for the upcoming year. Especially when you are asking the daunting question: what stage is my business in right now? If you’re not sure where to start, use this checklist to figure out where your company is in relation to your business ambition and goals. ON THE FINANCIAL FRONT Prepare Financial Statements and Analyze the Ratios. The first and most crucial step of a proper business year-end review is to prepare your financial reports and perform an analysis on your most relevant financial ratios. Starting with the financial statements: Balance sheet: to measure your current financial performance Income…

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Financial Ratios for Small Business Owners

Why Look at Financial Ratios? Financial ratios provide insight into your business recent performance. But it’s way more than that. It provides detailed insight into your operational effectiveness and efficiency as well as a great benchmarking tool against your competitor and the industry average. Your ratios show the details of your company’s operational strengths and weaknesses in a way that your revenue or profit figures simply can’t. For example, your revenue has been showing positive figures over the past 3 months but when you take a look at your inventory turnover rate, you found out that it takes 3 – 4 days longer than expected to sell your inventory. As a result, you have excess of inventory for the current month. There are a wide range of financial ratios that a small business owners can look at but it is very much dependent on your goals and your type of…

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5 Costly Money Mistakes By Small Business Owners

Small business owners, regardless of the industry, have first hand experience of the challenge in managing their finances from enduring and surviving financial bruises over the years. It’s said that failures make the best teachers. While that is true, learning from mistakes of others is another great way to progress without getting the expensive bruises. Here are the biggest 5 mistakes that business owners commonly make that could cost your bottomline and longevity. Quick Fix hiring The fastest and most affordable way to find staff members is usually through personal connection. Especially for relatively young businesses. Although it may work in the short term, it doesn’t always turn out well in the long term. Because they come from personal recommendations, you might overlook vital details such as their fit to the culture or if they share the same vision with your company. SOLUTION: Curate staff members who will contribute to…

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Effective Working Capital Optimization Measures

4 simple and effective measures to establish steady working capital so to boost your business growth.

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Alternative Lending Options: Can it help small business?

Small businesses are often placed in the fringes by traditional lenders as they lack the financial incentive to offer the funds. The Small Business Administration reported that around 85% of small businesses are getting rejected on their loan application by banks. A need that alternative lending platforms have taken advantage of to the benefit of small business owners. To fully take advantage of the benefits that alternative lending platforms offer, we advise you to weigh the pros and cons of to see if this type of small business financing makes sense for your company. Alternative lending provides a streamlined financing process The financing process through traditional lenders would take more than a couple hours as banks require more than a few detailed paperwork before you even begin the application. Compounded with the wait time, the process is just not sustainable for small businesses. This is where flexibility in the process…

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What questions would you ask your business?

Your business idea has taken off and is now performing well. With it, the business goals, financial needs, and challenges have also changed. Allowing you to put either more or less emphasis on certain areas of your venture. However, knowing your small business finances is doing well only tell half of the story. Do you know what you can do with it? What kind of questions does it post to you? Will you be able to upgrade your business? The following questions are a great starting place to help you figure out the next steps. 1) How is my pipeline doing? The business environment is always surrounded by uncertainties that can affect your pipeline at any given time. Thus, it is important to consistently track its progress. The revenue stream will always fluctuate on a weekly and monthly basis but does it point towards an upward trend? Pay attention also…

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