In today’s indecisive economic times, financial planning has become critical so as to meet life’s financial goals including retirement. A comprehensive analysis of the present financial picture will help point the direction toward meeting those goals and will aid evade excess spending. To put it briefly, financial planning refers to a business organization’s total current assets (short-term ones), accounts receivables, marketable securities, cash, and inventory. Management of the financial subdivision is a great accountability that demands equal attention on savings as well as sources of income (both short term and long term). In effect, a business firm can never augment its value if it fails to endure initial hitches in the short run. Therefore, efficient management of finances is important for any business to survive.
Strategies to investment short-term working capital need much greater consideration than are usually practiced. Specifically speaking, there are two short-term working capital financing options; short-term commercial mortgage loan programs and business cash advance programs that have been often unnoticed. But these two working capital funding options are outstanding for small and new business ventures to ward preliminary financial obstructions off their way. Business cash progress is one of the best financing alternatives for businesses accepting credit cards as method of payment. Speaking of benefits, business cash advance offers great assistance even to prospering businesses. For example, even flourishing businesses need working capital that might not be borrowed from a bank. Under these conditions, merchant cash advance or business cash advance programs come to the rescue. Retail bars, chains, and restaurants, service businesses are extremely benefited from these economics programs. Lion’s Trinity Capital facilitates clients in the Orange County area in financial planning and developing their businesses.
Credit card factoring or Receivable factoring is another inimitable working capital management strategy, whereby the businesses sell their potential receivables at a discount. Nevertheless, it is not doable for all small businesses to document their receivables with the intention of qualifying for this financing option. The documented credit card sales activity and sales volume of these small businesses serve as monetary asset to attain a merchant cash advance or a business cash advance.
Not negating the significance of short-term working capital loans, it is also essential to comprehend the significance of long-term working capital management. Make sure to get hold of a long-term commercial mortgage for at least 15-20 years while planning to finance your business long-term. In a few instances though it becomes important to evade long-term commercial mortgage loans and go for its short-term counterpart. This would particularly be applicable for those who intend to refinance or sell their business within one to five years. In reality, availing short-term commercial mortgage loans comes with the added benefit of negating prepayment penalties and ‘lockout’ debts, generally associated with long-term loans.
According to Lion’s Trinity Capital, there are few lenders providing effectual services for both these monetary strategies. Therefore, working capital loan in the form of commercial mortgage loans or business cash advance programs should be chosen with great care.