by My Commercial Capital | Mar 24, 2023 | Blog
Change is a critical factor for both individuals and businesses. Indeed, it could be said that sameness is an enemy to greatness. Every business owner should want to achieve some type of business growth. No business owner likely ever tried to shrink to success. As James Cash Penney, founder of JCPenney stated, “Growth is never by mere chance; it is the result of forces working together.” One of the key forces is financing for business growth.
The Measures of Business Growth
Business growth can be achieved and measured in many ways including increased topline sales, increased bottom-line profitability, added products or services, greater market share, a larger customer base, more employees, and added locations. Each of these will likely require financing.
Why is Business Growth Desirable
Business growth just for growth’s sake is not a wise strategy. Growth should be pursued purposefully and strategically. Then it becomes desirable for many reasons including being able to attract more talent, defend against competition, achieve a stronger market position, achieve economies of scale that result in lower costs, secure stronger buying power, become more economically resilient, and seize new opportunities.
Sources of Financing for Business Growth
Sources of financing for business growth include:
- Traditional bank or credit union loans. These loans are often difficult to obtain for small businesses and they often involve an intensive and slow application process. Â
- An SBA loan is a loan that is offered by a bank and backed by the Small Business Administration. These loans are specifically for small businesses and usually come with lower interest rates and favorable payment terms. Â
- A business line of credit. Â
- Equipment financing. Â
- Equity financing. Financing can be obtained through angel investors or venture capital firms, but this often comes with a loss of control. Â
- Financing from lending specialists instead of from banks. Â
Seek Expert Financing Assistance
Contact My Commercial Capital, based in Bel Air, MD, for expert financing assistance. We have a wide variety of financing solutions to meet your needs, structured to provide maximum benefits to borrowers.
by My Commercial Capital | Mar 21, 2023 | Blog
Your customers’ shopping patterns change as technology changes. Your company’s marketing plan should also evolve. A successful digital marketing strategy uses multiple aspects of electronic technologies to communicate your message. Take the time to make sure that all of these components reflect your business plan. Here are some types of strategies you should be sure you are using effectively.
Website
Your website is the core component of your online presence. This is your customer’s landing page, and most transactions are placed through this site. In addition to your product, history, and contact pages, your website should include blogs, videos, and testimonials. Your website should be current and easy to read.
Social Media Advertising
Develop a consistent social media strategy to attract your customers to your website and learn more about your company. You can post videos, blogs, or promotions through different social media outlets. Use this digital marketing tool to build brand awareness with your customers and prospects. The feel of your website and social media must be similar so that the transition between the two is seamless.
Search Engine Optimization
SEO involves identifying commonly searched keywords related to your company. When your customer enters those keywords, your website appears as a search result. Customers navigate to your dynamic content which then directs them to your website.
Pay Per Click Promotion
PPC advertising is a component of SEO. Your website or ad appears at the top of a search engine results page. When your customer clicks on the link, they are directed to your website, and you pay a fee. The fee is based on the frequency of keywords and where your link appears on the SERP.
Content Marketing
Content Marketing is a long-term SEO strategy that involves developing materials that increase brand awareness. These materials include videos, e-books, podcasts, and white papers. This strategy encourages you to nurture customers from lead generation to advocates for your company.
Email Promotion
A sound email marketing strategy gives you frequent contact with your customers and prospects via email. Make sure you are developing rich content to engage your customers. Personalize and time your e-mails for the most effective reach.
Many digital marketing components have built-in measurement tools to measure the success of the strategy. They also allow you to adapt your strategy in near real-time. Integrating any or all of these components can improve your online reputation and increase sales.
Seek Expert Assistance
Some advertising companies try to impress you with a bunch of tech jargon and big words that don’t mean a thing. At My Commercial Capital, we prefer to let the results speak for themselves. Like other small businesses, our main concern is to make our clients happy. We work hard, give you high-quality content, and produce digital marketing that has a great effect on your company’s online reputation.
by My Commercial Capital | Mar 17, 2023 | Blog
Many businesses across the country have embraced alternative financing. To find out if your company should join them, keep reading to learn why alternative lenders are so attractive.
Speedy Application Procedures
Speed is one of the best features of alternative financing. Often, alternative lenders can process applications in a fraction of the time a traditional bank may take to make a loan decision. That speed advantage is especially helpful when a business encounters a time-sensitive opportunity, like a great real estate deal or a chance to make a bulk purchase on inventory. It also helps in less favorable conditions, such as when an emergency situation calls for a funding injection.
Less Time Spent Doing Paperwork
Generally, alternative lenders require relatively little paperwork. That means that rather than dealing with mountains of forms, you can put your attention where it should be: on your business.
Versatile Solutions
Another strength of alternative financing is its versatility. Lenders in this industry can not only extend loans but also offer a wide range of other arrangements. Whether your business is seeking a line of credit, invoice factoring, equipment financing, or something else, there’s likely a solution available.
A Lower Barrier to Entry
Alternative financing is gaining steam partly because of traditional banks’ reluctance to lend to new, less-established companies. For entrepreneurs who haven’t had the opportunity to build a long record of solid credit, alternative lenders may be more amenable partners than traditional banks.
Continued Ownership
Some financing methods require owners to surrender some control of their company, with one example being when an entrepreneur takes on a partner to access their capital resources. Alternative financing is often a way business owners can stay in control of the show while still gaining needed funds. In fact, in many situations, borrowers don’t even need to put forth an asset as collateral.
My Commercial Capital has a variety of alternative financing products that can help your business. To learn more, just call or message us.
by My Commercial Capital | Mar 10, 2023 | Blog
Sometimes, as the expression goes, “there’s too much month left at the end of the money.” If that is the case with your business, a useful solution can be accounts receivable financing.
What is Accounts Receivable Financing
Accounts receivable financing is the process by which companies, large and small, secure loans against their outstanding invoices. A financing company provides a lump sum of cash based on your receivables and those receivables serve as collateral for the cash that is advanced.
How Does Accounts Receivable Financing Work
First, your business applies for funding with an accounts receivable financing company. The financing lender will require invoices and other supporting documentation.
Second, the lender funds a portion of the invoice total, generally about 80 percent of the invoice value, depending on the industry and the invoiced customers’ credit history.
Third, your business uses the funds as you desire.
Fourth, the lender charges a weekly fee against the loan until the end customer pays his/her invoices.
Fifth, the invoiced customers pay their invoices directly to the financing company. The lender pays the balance to your business less their fees.
Why Do Businesses Use Accounts Receivable Financing
Accounts receivable financing is a financing option for when businesses have short-term cash flow challenges, when they need extra cash for an unexpected business opportunity, to deal with seasonal business swings, when they need to support rapid growth, when they need help to pay for current business expenses, and when they need funds to make business improvements.
The Advantages to Accounts Receivable Financing
The advantages include generally quick approval and rapid funding, an easy application process, there are no long-term contracts required, and there is flexibility to choose the financing amount and financing timing. This approach can smooth cashflow and ease a company’s financial challenges, plus collateral is not needed (because the invoices themselves are assets,)
Seek Expert Financing Assistance
Contact My Commercial Capital, based in Bel Air, MD, for expert financing assistance. We have a wide variety of financing solutions to meet your needs, structured to provide maximum benefits to borrowers.
by My Commercial Capital | Mar 3, 2023 | Blog
Improving cash flow is one of the best things a business can do for its financial health. The following tips can help any business do just that.
Finance Equipment
Buying equipment outright can eat up too much of a business’s cash flow. That’s why many companies use equipment loans or leases. Loans mean your company will make set payments and own the equipment once the loan is paid off. Leases mean your business gains use of the equipment for a set period of time in exchange for payments, which are usually much lower than shelling out a large lump sum.
Weed Out Expenses
Sometimes, improving cash flow is as simple as spending less money. In practice, that means canceling unnecessary subscriptions, vacating unneeded office space, and pursuing other methods of tightening up your company’s spending.
Take Out a Loan
Loans are useful for purchases far beyond equipment. They’re particularly well-suited to spreading out large expenses, such as those associated with renovations, over a long period of time, which preserves cash flow.
Use Invoice Factoring
Invoice factoring occurs when businesses sell unpaid invoices to a lender. In exchange for a fee, the lender will advance a large amount of invoices’ value, then send the rest once they’ve collected the amount due from the party responsible for paying the invoice. This setup turns clients’ unfulfilled payments into immediate cash.
Utilize a Business Line of Credit
A business line of credit can be a lifesaver for cash flow. Once you’ve set up a line of credit, you can withdraw as little or as much money as you need, up to the line of credit’s limit. Your business will only be responsible for paying back the funds it takes out.
Get a Business Credit Card
A business credit card can be useful for making purchases during period of low cash flow. However, you should be aware that these tend to have high interest rates. To avoid paying interest, businesses can pay off their credit card balance monthly.
Want financing solutions tailored to your business’s unique needs? Contact My Commercial Capital today.
