With government loans for small businesses, entrepreneurs throughout the country have a greater source of capital for their development purposes. That may prove necessary to offset some of the challenges inherent with operating a stable company today. Even if the result only indirectly affects the budget, adding funds for projects can have a net benefit by reducing the original spend.
In a May 17 statement, WePay announced the findings of a recent survey assessing the payment pressure points for small businesses in a difficult climate. Some of these hazards included fraudulent chargebacks, delinquent payments and cash-flow difficulties. There was a clear standout among these concerns: While just a quarter of businesses dealt with chargeback fraud, 41 percent said that they’ve experienced cash-flow problems.
The company’s Vice President of Risk and Chargeback Operations, Tina Hsiao, said that the digital tools on the market may emerge to swing things in the business’ favor.
“It’s disheartening to see how many, and how much, small businesses are distracted by challenges related to collecting their hard-earned money,” Hsiao said. “Yet it’s also encouraging to see how software platforms with integrated payments processing are starting to fundamentally change the game.”
As Small Business Trends pointed out, forecasting, planning and analyzing possible cash flow sources can all help companies avoid possible flow pitfalls. The source spoke to The Profit Experts CEO Fred Parrish, who cited the importance of preparation, including an accounts receivable plan to follow, as a good balance.
In lieu of cash streams, business owners can try to fund projects using government resources like an Ohio SBA loan, the different programs available through Growth Capital can help fill important gaps, such as fixed asset financing, refinancing costs or major essential equipment purchases. Register for our mailing list to learn more.
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