Many small businesses don’t have the time or resources to adequately monitor their own financial status, no less the ability to screen the finances of their partners, vendors, suppliers or customers. However, if SMB CEOs take away one thing from the current recession – it should be a clear understanding of how important it is to have a transparent view of their customers’ financial situation.
But with so many CEOs plagued with time, money and employee restrictions, how can they effectively implement the strategies to do so? Here are a few tips to help small businesses get started:
1. Evaluate Your Businesses’ Current Financial Standing – You can’t monitor your customer until you monitor your own business.…
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The U.S. economy’s worst recession in the post-war era has begun to turn for the better. Yet, despite the fact that the doom and gloom of the past 20-plus months may be behind us, entrepreneurs seeking to buy businesses still find it difficult to get banks to finance their purchases.
It used to be that even upstart businesses with no credit history could secure $50,000 lines of credit with no documentation. Bank of America began such a program in 2006. And since then, other banks followed suit offering $50,000 and $100,000 loans to new and un-proven businesses. In a press release at the time, Bank of America stated that even “a small business owner in business for only one day could qualify” for its $100,000 line of credit program.
Another large credit card company this week launched a business credit card to specifically meet the needs of small business owners. This launch is yet more proof of how fast the small business segment is growing and contributing to the U.S. economy.
