Asset-Based Lending Grows in Popularity

An article from this Tuesday’s Wall Street Journal highlights the flexibility  that asset-based lending provides.  Weezabi LLC, the company highlighted in this story, is a prime example of how small businesses can use an asset-based line of credit to say “yes” to new business opportunities. Read the article

SBA Lending: Down But Not Out

Although SBA lending is down sharply in 2009 compared to 2008, the movement of new activity as of late, is a positive sign of good things to come.  Even a slight increase in activity will give entrepreneurs some level of hope that a bigger credit thaw will happen in 2010.  In the meantime, entrepreneurs need to be creative and think outside the bank box for financing solutions.  Asset-based lending, factoring, PO financing and equipment leasing will continue to be viable solutions to today’s financing challenges.

So your customer needs a rush order?

There are a variety of red flags that can signal a potential problem with payment and/or collections from your customer. Beware: repeated rush order requests is one of those red flags. A sudden need for a “rush order” from your client might signal cash flow issues on their end. This might indicate that your customer has not planned accordingly for work flow. It could also mean they are short on cash and need to expedite delivery of a good or service, to speed up their payment and resolve a cash bind. If an unexpected “rush order” request is made, don’t be afraid to ask questions of your customer, including why the rush order is needed. You may also want to ask “What happened during the production cycle to cause this sudden need?” “Do you anticipate additional rush orders in the future and why?” The answers to these questions may signal there are troubles ahead. Keep in mind a one-time request doesn’t necessarily indicate a problem, but if you receive repeated requests from the same customer, you might want to think twice.

Macomb Incubator Promises Progress for Small Businesses

The new site of entrepreneurship for Macomb County was unveiled on Monday in Sterling Heights and what a sight it was.  After interacting with many of the 400+ business owners, professional service providers and dignitaries, it was clear that entrepreneurship in Macomb County is alive and kicking.  At a time when negative press is running wild, it was great to see so many folks energized about what the future has in store for our region.  Business owners were excited about being able to leverage the Incubators talent in the areas of sales introductions, marketing, finance, business coaching and business planning.  It will be a valuable resource in moving entrepreneurship forward. Learn more about the Incubator

SBA Lending Jumps in May

Good news from the SBA this week - could it be? Encouraging information featured in a Crain’s Detroit Business  article indicates that small business lending, specifically SBA 7(a) loans increased in May. Could this mean preliminary signs of credit markets thawing? Perhaps the American Recovery and Reinvestment Act is actually creating a degree of recovery and reinvestment. Only time will tell, but things seem to be looking up for small business lending this month. Read the Crain’s article

Small Business Loans Criticized

Monday President Obama released a plan to increase the federal guarantee of small business loans to 90% and decrease fees associated with the loans. However, the action is being met with significant criticism. Read the Wall Street Journal article: Small Business Loans Criticized

Access to Capital Webinar

Entrepreneurs throughout the country are encountering challenges in gaining access to capital. With credit markets dried up and few banks lending to small businesses, it’s become increasingly difficult for small enterprises to get the working capital they need to grow their business. If you are interested in learning more about the financial spectrum and where to turn when your credit line shrinks, register for the upcoming “Access to Capital” webinar.

Thursday, March 18
9 a.m. EDT

E-mail name and company to: Nicole@macombcountychamber.com.

12 Tactics Entrepreneurs Should Consider

This outstanding Bnet article offers insight on 12 tactical moves (defense and offense) that small business owners can put into play now to weather the economic storm, particularly in the area of cash management. In a challenging economy, it’s important that business leaders focus on cash flow and are proactive in recognizing long-term working capital needs. It is beneficial for entrepreneurs to identify an alternative lender early in the process, before there is an immediate need. Also, CEOs and CFOs need to do their homework – does your working capital provider understand your business and industry, is there transparency regarding fees and processes and can they understand how the additional cash will be used and repaid?

Where Does My Business Fit?

In today’s often challenging job market, there seems to be an increase in those who are interested in starting a new business or growing their current small business into new markets and industries. All entrepreneurial ventures, regardless of business model or industry, seem to lead to the same place, because almost all require the same thing… financing.

Today, we’re going to try to demystify the financing quandary and provide some insight on how small business financing works.

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Welcome to the Conversation!

This is the first post of capital conversations, a podcast and blog about making sure small busineses find the financing they need to succeed.