Large companies make up only around 4-5% of the whole.  The rest are smaller companies, using many techniques to export everything from light fixtures to bird seed to the far reaches of the earth.

Export businesses often face challenges when money for expansion is needed due to bank’s fear of international market volatility - where import/export business owners often see such volatility as the key to their success.  This means that export/import businesses must find other creative means to capitalize their business during growth so that they can take advantage of opportunities quickly.

Factoring for Capital Allows Rapid Action  

Some companies can use receivables as collateral - factoring - as a ready method for expansion when opportunity presents itself.  This can, depending on the math, be a stepping stone to greatness for smaller companies who have found a “mother lode” of a high demand item at low prices, or when an overseas customer asks for a big jump in orders for their own needs.  While the money is more expensive than a bank, it is quick, and repayment can vary based on the subsequent income of the company.

Currency Fluctuations Can Warrant More Expensive Loan Products

If currency fluctuations are about to affect your business, and you can lock in terms, accessing capital quickly may provide the right answer also.  Even when the US Economy contracts, the export market expands. In fact, savvy import/export business owners can take advantage of this fact for competitive advantage.

….If you look at this from the banks point of view they want you to be successful because it will mean more business for them, and it will also mean the chance for you to grow and expand your business – every one wins, but the banks really do hold the trump cards in the early days. So once you do decide to go ahead with your business and everything is in place you need to ensure that people know who you are and what you have to offer…

Building business credit is very important if you plan to grow

…Remember, it’s not just about getting access to financing; business credit has increasingly become the primary vehicle for setting terms on business loans, determining insurance premiums, even setting lease payments. Good business credit can earn you lower rates, strengthening your cash flow….

• Good Credit Increases Your Working Capital
• Good Credit Decreases Your Expenses
• Good Credit Affects More Than Just Financing

“But your friendly loan officer also nurses some deep, dark secrets. And he certainly isn’t going to let you in on them. For some secrets, particularly the ones that translate into pots of money, are well worth keeping…”

The post has details, but here are some of the secrets ( go to the post to check out the rest!)

1. Upfront fees and costs increase the cost of your loan

2. A longer tenure doesn’t always mean you’re better off

3. Your fixed interest rate is not so fixed

4. When you prepay, always reduce the loan tenure

5. How your installment is calculated

6. It is rarely necessary to pledge extra collateral

7. Approval can be swift, but only after the paperwork is over

8. Lenders will be concerned about pushing the loan type that benefits them most.

9. Loan agreements nearly always favor the lender

10. Don’t overborrow

Step 1:  Start a business credit file - To establish business credit, business owners need to obtain a D-U-N-S(R) Number, a unique business identification number, to establish a credit file as soon as they start their business.
Step 2:  Establish a credit history - Business owners should put all expenses in their business name and use a commercial bank account to pay bills, rather than using personal funds.  This approach will allow business owners to build a history of payment behavior that will help establish favorable credit terms.
Step 3:  Pay bills on time - Commercial credit scores are influenced by paying bills on time as well as other factors, such as outstanding debts and company revenues.
Step 4: Monitor and understand their business credit file - Business owners should monitor their credit file before any change occurs that might affect relationships with suppliers, customers and banks.
Step 5: Monitor customer and supplier credit - Business owners can improve cash flow by knowing the credit standing of business partners before agree in to payment terms.

 ”Both the SBA and Dun & Bradstreet have a long history of experience in working with small businesses to maximize their business success,” said SBA Administrator Steve Preston. “These are five smart and easy steps that any small business can implement to establish and maintain good business credit and protect their businesses.”

Tax preparers charge huge interest rates for the privilege of getting money a few days earlier. The IRS further mitigates the risk to lenders with its Debt Indicator, alerting them to claims (child support, unpaid federal student loan) against loan applicants’ refunds.

A report, written by Chi Chi Wu of the National Consumer Law Center discusses the high price of these loans.

One devices look a bit like a cellphone, but instead connect to the retailers wireless inventory system letting personnel access product information as well as communicate with other employees via walkie talkiie or direct calls. The device is meant to improve the retail customers’ experience by giving employees the power they need to offer pricing information on the spot.

“That [employee with a CA50] is instantly more productive,” said Craig Mathias, a principal at the Farpoint Group, an Ashland, Mass.-based advisory firm specializing in wireless networking and mobile computing. “… When you hire someone to work in a big retail store, you can’t possibly spend enough time to educate them on all the items carried in the store.” - Newsday

Motorola expects to launch new kiosk services as well, giving shoppers fast-exit options such as improved u-check-out solutions.

The device comes with wireless LAN, bar code scanning and information retrieval, and voice over Internet protocol (VoIP) for integrated mobile-phone style voice communications.   The CA50 can perform as an extension of the desktop so that incoming calls can be redirected to ensure that no call is missed or abandoned.

“Consumers will be under financial stress from high energy costs, the fallout from the housing slump, and sluggish employment and income growth,” said NRF chief economist Rosalind Wells, “Shoppers will seek to pay down debt, spend more in line with income growth, and approach discretionary purchases with more restraint,”

The NRF expects things to pick up in Q3 and Q4.

1. It takes a lot of money to finance a new business.
2. Venture capitalists are a good place to go for start-up money.
3. Most business angels are rich.
4. Start-ups can’t be financed with debt.
5. Most entrepreneurs start businesses in attractive industries.

Details on each item, as well as the other five items, can be found at the Seeds of Growth blog.

• Lease Payments can be deducted from your taxes in many situations. Unless you’ve signed a “lease-to-own” program, you can probably deduct those payments.
• You can claim payments against a lease as a necessary business expense. Since this shows in the books as an expense, the value of your business goes up.
• Shorter commitments to a given set of tools and technologies. When you’re growing, or moving around during the early phases of a business, the last thing you want to do is become saddled with a single technology or style of equipment. Leases can be short, and you can then rotate your equipment to better suit your business needs at the time. When you own the equipment, it’s much harder to justify acquiring new gear in such short periods.
• Repair programs and Warranties. Leasing equipment often comes with an attractive repair/replacement program that would cost much more were it your equipment. Highly used gear should be covered by next-business-day replacement agreements.

By freeing up your business capital, you can spend that money growing your business strategically.

This is what you’ve been looking for. If you qualify, this is typically the best type of financing for most business owners we work with. Here’s the good news…

• NO personal or business assets are required as collateral.
• NO liens or UCC filings placed on any of your business or personal assets.
• NO business or personal tax returns are required.
• NOT a “credit card program”

You will have a “yes” or “no” in 48 hours. Call 800-972-0408 or visit http://www.flowfunding.com. 

Our experience and strong banking connections allow us to maximize your borrowing potential. We will match your credit profile and business history with our network of lenders and finance companies to give you the highest borrowing success rate in our industry.

Your loan or credit line will range between four and seven years and generally can be renewed indefinitely. Interest rates typically range from Prime -1 to Prime +5, depending upon past credit history.

We help business owners with almost every credit profile.

However, for this type of financing, you will need:

• 2 years of business history
• A personal credit score of 680+ for each 20% owner
• Annual company revenues of $450,000+
• Acceptable Industries (list here)
• Available states (list here)

We are experts at matching qualified business owners with lending sources and we’re so confident in our ability for success there are NO up front fees and NO application fees at all. We’ll be paid a fee only after you are successful funded. No funding, no fees.

If you do not meet these requirements now…

We’ll help you find a program that does fit your current business and credit profile

We’ll help you position your company for better funding options the next time you need financing.

Call 800-972-0408

Business credit line application guidance on best funding options

Equipment Lease

If you need almost any type of equipment for your business and have a credit score of 580 or higher, you’re set. The better your credit the better the financing rates we can secure for you.

If you’ll return our one page application with a list of the equipment you need, we’ll give you a “yes/no” in 24 hours and have our funding in about a week.

Equipment Collateral Loan

If you own heavy equipment in your business, many lenders will give you a loan and use that equipment as collateral. Because of this security, we can offer financing at lower credit scores.

To get totally unsecured financing you’ll need strong credit but if you can use equipment that you own free and clear, credit of 600+ will typically work.

Both of these programs allow us to give you a very quick answer, typically in 24 hours.

Simply request our 1 page application and return it with a list of the equipment you own or want to purchase. We’ll have a “yes/no” answer for you about 24 hours and can typically get your financing arranged in about a week.

Call 800-972-0408