Starting A New Business? Finance the First 90 Days

Often entrepreneurs peg the beginning of their cash flow to opening day. Actually, from the experiences of new business owners, a more realistic view is to depend on financing to cover your start-up costs for the first three months of business. Having the necessary operating capital upfront is critical to creating your healthy cash flow. Your 90 days of working capital can come from several sources. When considering the source of working capital and the amount, the following checklist will help you estimate your financing needs:

• Marketing costs. Getting your name out is paramount to your success. Attracting new customers and creating the “buzz” is the key to drawing foot traffic to your establishment.
• Regular overhead expenses. Be ready to meet payroll, interest, licenses and taxes that come due in your first quarter of operations. When figuring your beginning payroll, don’t forget the company matching funds for payroll taxes and social security.
• Incidental business costs like shipping, postage and credit card fees. The tag-a-long expenses are usually out of sight charges, but at the end of the month, especially a month with great sales, they will tally up and need to be met.
• Office supplies. Probably the most you will spend on your office at any one time is at the start: paper supplies, office furniture, printer, printer supplies, and computers, even if some are purchased on a lease, are initial expenses. Maintaining those supplies is usually a lesser expense than setting up your initial inventory.

For many business, such as restaurants and franchises where there is a ready market or population of loyal patrons, a business cash advance from US Business Finance Corp may be an alternative business capital source, especially if you are expanding to a second location. The cash advance is paid back from a portion of your future sales, not from cash, Discover or American Express sales, only from your VISA and MasterCard sales. This allows you to meet the needs of your second location’s the first ninety days without drawing down on your main operation’s cash flow.

US Business Finance Corp has utilized its well-received business cash advance program to help restaurants (typically hard to finance) and small businesses of many kinds meet their working capital needs. Several  differences between funding with a cash advance versus a traditional loan is the speed to receiving the funds, the minimal documentation and the financing does not create an additional long-term liability on the company Balance Sheet. Contact us to see what alternative capital sources we have available for your business.

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Filed under: Alternative Capital, Business Cash Advance, Business Finance 101, Business Solutions