The long-term health of any business revolves around cash flow – what money comes in and what goes out. Ideally, more comes in than goes out over the long haul, but there inevitably will be periods where that is not the case.
Debt is part of running a business. Hiring employees, investing in equipment and participating in industry tradeshows all costs money, and can be a smart use of borrowed funds. But debt can also can sink an otherwise successful operation.
There is a reason the acronym KISS has stood the test of time. When a situation feels like it’s spiraling out of control, “keep it simple, stupid” can be the first step toward sanity.
Some customers go to any length to avoid paying, while others trickle in with small payments on a large amount due. Other business clients may encounter their own financial problems and simply are unable to pay.
American Airlines, Kodak, General Motors; household names with one crucial thing in common -- all three have filed for Chapter 11 reorganization.
Small business owners often find themselves in need of a quick influx of cash to keep the doors open. In this situation, many hear about a merchant cash advance (MCA). This is a one-time financing strategy in which a business receives a lump sum that can, on the surface, appear to be a lifesaver.
For business owners looking for fast financing, merchant cash advances can seem like an attractive option. Many cash advance companies lure entrepreneurs in with promises of no fixed monthly payments, no need for collateral and the willingness to look past bad credit. A good rule of thumb is if it sounds too good to be true, that’s likely the case.