Small Business Financing

Surviving a Small Business Failure

Few people realize how traumatic a business failure can be beyond the obvious financial problems this presents. More often than not, friends and family may gauge the severity of a failure on the extent of the business losses incurred by the owner alone. Since small operations are often financed from personal savings, 401k, or even home equity loans, the financial consequences can be truly devastating. There are however other factors to consider when operations end abruptly. They can often outweigh the monetary losses incurred.

As upsetting as this may be, and in fact as devastating as this might be on personal finances even to the extent of causing personal bankruptcy in many cases, the emotional trauma can even be more severe. Most owners either start off with a deep sense of passion for what they do or come to embrace their businesses as an extension of themselves. In a society in which people often value themselves by what career they pursue, a business failure can result in a low self esteem. Lest this might be underestimated, we need only remember that after meeting a new person, the focus of a conversation usually turns to what a person does for a living.

Most business owners however don’t simply see their businesses as livelihoods but as a reflection of their personal commitments, their passions, and their independence. It’s difficult for owners to separate their lives from their endeavors and hence the consequences of a failure can last well beyond the financial losses are regained.

Entrepreneurs must instead constantly remind themselves that companies do fail and look to the fact that even multi-million and multi-billion dollar corporations cannot always stem market changes or the plan adequately. The efforts of the mom and pop operations are truly impressive. Minimizing the amount of personal exposure to the financial side can significantly help, as financial devastation especially for those with families can be the second major source of personal turmoil.

As anyone who experiences a crisis, entrepreneurs who are committed to their trailblazing lifestyles must strive to learn from their mistakes, pick themselves up, and chart a course for the future. There is certainly no guarantee of success, but the processing of full personal recovery can often involve pursuing the difficult world of business armed with priceless personal experience and the dedication that initially started them down the path of independence and control over their own destinies.

Jacob Lumbroso is a world traveler and an enthusiast for foreign languages, history, and foreign cultures. He writes articles on history and languages for and has a website on Musical Instrument Accessories and advice on finding the right Musical Instrument Store.

More Small Business Financing Articles

Small Business Tips To Ensure Your Business Survives Christmas

In almost all cases, lenders could like to provide a tiny business a secured the web of credit during which collateral is put up for guarantee. However, if you do not you’d like to put personal assets, then applying for unsecured business line of credit have to be considered as the most acceptable choice. However, it is in a position to be quite challenging for a small business to buy unsecured business lines. Here also are a few guidelines to improve your possibilities for when you actually apply for one.

Small business financial depends upon nature of the business i.e. Fresh or seasoned business. Quantity fetched through the small business finance can be used for numerous purposes really like purchasing a land, furniture, raw material, advertisement, machinery, outgoing expenditures and so on.

Small business finance will be in a position to be accessed from numerous lenders really like prominent banks, institutions, lenders. With nowa, today little business financial is too available thru the online market.

One false move because a little the web business owner during a tiny town and you actually could find yourself without a small the internet business and without a implies to address each one of your bills and other things that come getting ready. Your tiny online enterprises success has a great deal to do with who you are also, the way you actually believe getting ready others, the cleanliness of your little the web business and the staff or employees that are also working for you really, representing what you really also are preparing and making your tiny online business feel and look brilliant each day.

On the other side if the business person doesn’t you’d like to risk estate, she or he will be able to choose for unsecured tiny business loans that are also approved without collateral. However, on unsecured little business loans, lenders fee increased interest rate for covering risks. The lender gives most effective shorter repayment duration for unsecured tiny business loans.

These are also just a couple of of the numerous resources available to small business owners. When going though hard economic times, info is key, and through nowa resources, because well as others, you actually is in a position to buy the answers to your questions, find the support you need, and have an excellent list of tips for difficult times that is going to assist your business remain strong no matter what the economic climate.

So here is chance to get your free tips on small business help and in addition to that get basic information on saving money visit small business solution

Effective Marketing Vital to Small Business Success

Loss of jobs through closures and the contraction of large businesses, has forced a shift in economic development policies for towns and cities nationwide. Many communities are recognizing the fruitfulness of encouraging small business start-ups and expansions. Small businesses play a vital role in contributing to a state’s economy and remain a significant source of creating new jobs.  By adopting economic development strategies that promote entrepreneurship, communities are fostering a healthy business climate that allows free enterprise to thrive.

The U.S. Small Business Administration posted the following statistics about the importance of small businesses to the U.S. economy:

Represent 99.7 percent of all employer firms.
Employ about half of all private sector employees.
Pay nearly 45 percent of total U.S. private payroll.
Have generated 60 to 80 percent of net new jobs annually over the last decade.
Create more than half of non-farm private gross domestic product (GDP).
Hire 40 percent of high tech workers (such as scientists, engineers & computer workers).
Are 52 percent home-based and 2 percent franchises.

In 2007, there were an estimated 27.2 million businesses* in the United States. Census data shows that there were 6.0 million firms with employees and 20.4 million without employees in 2005. Of the 6.0 million firms with employees, it is estimated that 90% of these employ 20 people or less. The resounding number without employees represents the ever growing demographic of the sole proprietor.

There are many things to consider when wanting to start your own business, such as financing, a focused business plan, and developing a customer base. There are many talented individuals who focus solely on offering the best product or service and ignore one very crucial component – developing and following an effective marketing strategy.

The emergence of Web 2.0 – business blogs, search engine optimization, social media sites, social bookmarking and microblogging – has created a powerful, cost-effective way for entrepreneurs to reach a vast audience. If you are unsure how to properly utilize these tools, we would love to work with you to create a customized social media campaign that advances your brand and meets your objectives.

*Source: Office of Advocacy estimates based on data from the U.S. Dept. of Commerce, Bureau of the Census, and U.S. Dept. of Labor, Employment and Training Administration.

Please contact us today for a consultation, either online or in person.

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Expanding your business with vendor finance & equipment leasing

If you’ve been holding off on expanding your business – what are you waiting for? The Australian economy is making a fine recovery and many industries are back on their feet after the scare of the global financial crisis. Meanwhile, for many small and medium-sized enterprises, business is booming and organisations are finally looking at kicking their expansion plans into full gear.

Ways to grow your business

When it comes to expanding your operations, the strategy you adopt will depend on the industry you’re in and the way your business is run. Here are some considerations for winning new business:

Upgrade to new technology – are your computers still running on Windows 95? Are your printers due for a serious upgrade? Upgrading to new technology is essential for staying up to date with the latest industry trends and boosting efficiency within your business – get a leg up on the competition.
Expand your range of products – one of the easiest ways to attract new business and keep your current clients happy is to diversify and expand your current range of products and services. Look for new opportunities and get feedback on what your current customers are looking for.
Break into a new field – tailor your services and offer your clients an all-in-one solution. Consider a strategic partnership with a relevant business to expand your service offerings. For example, suppliers can expand their B2B business by offering vendor finance and equipment leasing solutions for their clients.

Of course, for many small to medium-sized enterprises, capital costs can pose a significant obstacle to growing their business. If you’re in the medical field or run a printing business, upgrading or adding new equipment can be a substantial cost. You could take out a business loan to purchase new equipment, but many finance institutions are still “playing it safe” when it comes to doling out credit for even well-established organisations when it comes to asset finance.

Leasing equipment to grow your business

One easy, hassle free way businesses can obtain the equipment they need to expand their business is to lease the equipment instead of buying it outright. When you lease equipment, you’re paying for the long term use of the equipment, much like you would pay for the use of your office space or commercial premises.

In this way, you can obtain new machines and the latest technology without the costly upfront overheads – and you won’t necessarily have to deal with the stringent requirements of banks and standard lending institutions. And because lease payments are accounted for as an expense, your monthly payments can be up to 100% tax deductible – so it’s a great cash flow finance solution for your business.

Learn more about equipment finance and leasing solutions to help grow your business – visit

Is Financing Inventory And Financing Purchase Orders Actually Possible In Canada ? Yes You Can!

It’s not a myth or urban legend. Financing inventory and financing purchase orders in Canada is actually possible and in most circumstances the cost of this financing is significantly offset by your firms ability to increase sales, generate additional profits, and lower competitive pressure .The bottom line is of course more larger orders and contracts, in some cases from clients you were not able to satisfy in the past based on our financial strength or other challenges.

Let’s step back a bit and define some of our key metrics. In its simple form the financing of inventory is simply your ability to finance, or rather, ‘ margin’ inventory on an ongoing basis. The inventory is of course simply the collateral. Clients talking to us about seeking specialized inventory financing are often in the position of having inventory form a large part of their current assets, in conjunction with accounts receivable of course.

So in a perfect world you go to your Canadian chartered bank and ask they to finance you inventory and free up cash flow. It’s that simple right? We can hear you already in the background, and we’ll be the first to admit it’s not a perfect world. Even seasoned Canadian business owners and financial managers realize the inventory is not high on the list of bank financing in Canada, especially if you are a small or medium sized firm that does not have the bench strength to satisfy typical bank criteria which focus around everything EXCEPT inventory, i.e. ratios, covenants, external collateral, personal guarantees, etc.

For inventory financing to make sense you should realize that your inventory has to be marketable, it can’t be old, stale and slow moving. You also have to be in a position to demonstrate that your inventory turns regularly, and that you have sufficient gross margin to carry the financing costs associated with financing inventory and financing purchase orders. P.o. Financing is of course the ‘ kid sister ‘ to inventory finance, and such a facility contemplates direct payment to your suppliers by the p.o. financier , allowing you to of course satisfy supplier payment amounts and terms, while at the same time fulfilling client orders and contracts .

So if the bank is not your best bet how actually are these two asset categories financed? The reality is they are financed by specialized firms, and in the case of inventory pure play financing we encourage clients to bundle their inventory financing with a full asset based lending line of credit via a non bank private finance firm. This type of facility margins both inventory and A/R to maximum leverage, giving you in essence unlimited working capital to grow.

To qualify for financing inventory and financing purchase orders you should generally have solid management and industry experience, good accounting and reporting around your inventory, as well as the aforementioned marketable product that can be resold by the financier if a problem arises.

Speak to a trusted credible and experienced Canadian business financing advisor on ensuring your understand the benefits and qualifications for this valuable financing tool and strategy.

Stan Prokop is founder 7 Park Avenue Financial ; Originating financing for Canadian companies,specializing: working capital, cash flow, and asset based financing , the 6 year old firm has completed in excess of 45 Million $ of financing for companies . For info / free consultation on Canadian business financing / contact details see:


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