Five Steps to Improve Your Business’s Financial Statements

Small businesses looking for additional working capital can take steps now to improve their financial position and statements before approaching their banker. Most entrepreneurs are most at home in the salesman role and preparing their business for financing is not of the highest priority. US Business Finance Corp has found that following these five steps can help your business prepare great looking financial statements.

First step, create a monthly budget. Using a spreadsheet with a column for each month helps you keep important quarterly payments on your budgeting radar. The spreadsheet can often become your Cash Flow Statement used to obtain funding. Use the first column to list all the vendors or expenses and the second column for the bill due date (or the date you will pay it). The payment date column also helps keep your credit score at its best with no reported late payments.

Second, think of your employees as an asset! Their knowledge and experience enhances your company’s customer service level and a more experienced management and employee base shows banks that your business is stable and experienced. Also, new employees need to be trained – and if that training comes from the small business owner, that is costly in terms of the owner’s time.

Keep a lean inventory. Carefully weigh the benefits of buying more inventories at “bargain” prices against its impact on your cash flow, the “money cost” of holding the inventory, and time issues, such as perishable products, theft loss, storage costs or inventory going out of style.

Fourth, take the time to send out invoices in a timely manner – your creditors do! Keep your thirty days net to thirty days. You usually pay for the invoicing delay time with higher interest payments, not to mention the stress.

Lastly, take the time to go over your spending at the end of the month. Make sure the actual expenses are in line with your original budget. Avoid cash flow impacts of new purchases of inventory or equipment that are outside the budget constraints by lining up the ability to counter the expense with income prior to incurring the expense.

US Business Finance Corp has seen many companies avoid the lengthy loan process by using a Business Cash Advance to handle additional inventory or equipment costs as well as build in the ability to repay the advance from future VISA/MasterCard credit card purchases. Often, reducing expenses is not an option, so our cash advance will allow you the extra money for necessary spending without compromising your service or product availability that your customers have come to expect.

Talk to the funding professionals at US Business Finance Corp to see how easy it is to obtain your cash advance as your company grows in profitability each day.

Related Images:

Filed under: Alternative Capital, Business Cash Advance, Money Matters - Business