Financial Strategies

In the face of a growing commercial finance funding crisis, many small business owners are exploring new options for commercial financing. Credit card loans and business cash advances are two working capital financing strategies which are proving to be practical and effective sources of operating cash for commercial borrowers.

The use of credit card financing often refers to business cash advances in which working capital is obtained by business owners based upon future credit card processing activity. Alternatively the use of personal credit cards to obtain a cash advance is also referred to as a credit card loan. With business finance funding shortages, small business owners are increasingly using both approaches to obtain operating cash for their business. The two financing approaches are not equal in terms of how they are viewed by commercial financing experts although the strategies might be called by the same name occasionally.

Many commercial lenders have suddenly reduced or cancelled business lines of credit and other forms of working capital loans. In response, many business owners have been forced to rely on cash obtained via their personal credit cards to sustain their businesses. We strongly urge all commercial borrowers to review our predatory lending discussion in The Working Capital Journal in order to prepare for some of the most undesirable actions being taken by many lenders which have a substantial credit card loan exposure.

There are two particular observations we want to emphasize about small business owners using personal credit cards to obtain operating cash: (1) This really is a business financing method of last resort that should be avoided whenever possible. Before assuming that this is the only source of capital available, commercial borrowers should consult with a working capital finance expert. The possibility of business cash advances and working capital loans should be thoroughly explored. (2) This questionable method of obtaining commercial finance funding will prove to be increasingly more difficult because credit card issuers are already cutting back on their unsecured lending programs.

Like reductions in their lending programs for business lines of credit, most banks are now making similar cutbacks in credit card lending. They are reducing or cancelling credit lines even when borrowers have a superb payment record. The rationale for banks reducing both credit card lines and commercial lines of credit is similar. With unsecured commercial loans or personal loans, banks fear that massive defaults are almost inevitable due to a very shaky economy and business lending climate. Unlike residential real estate financing in which real property is pledged as collateral, banks know that they have no collateral to fall back on with working capital loans and credit card loans because they are unsecured. Many small business owners use home equity lines of credit to obtain operating cash, and these funding sources are also diminishing in most areas of the United States. Although these lending programs are backed by collateral, the value of homes in many areas has decreased to the point that many outstanding loans exceed the current property value.

One of the most disturbing and frustrating occurrences in the current difficult commercial financing environment is the lack of clear information for many business owners about which funding options are realistic and possible. This factor alone has probably led thousands of commercial borrowers to obtain operating cash from their personal credit cards when there were better alternatives.

Due to the growing tendency of several major credit card issuers to exhibit predatory lending practices, the use of personal credit card loans should be avoided. At a minimum, each business owner should contact a business finance funding expert to determine if a business cash advance program or a working capital loan program can be used to obtain needed cash.

Business Finance Broker Ltd. is a team of dedicated corporate financiers, with over Eighty years combined, Corporate Finance, Banking, and Financial Law experience, making us the ideal choice for your financing needs.

Our highly experienced team’s efforts without doubt are quickly establishing us as the major player in the otherwise highly volatile International Business, Corporate, and Corporate Construction financial marketplace.

At Business Finance Broker, we specialize in arranging Business, Corporate and Commercial Construction finance for our increasing International clientele that now spans twenty-four countries globally.

Our specialist service caters only for clientele in the following categories:

Business Loans – (Multi purpose Business Loans from: $100,000 – $500,000). Corporate Finance – (Multi purpose Corporate Loans from: $500,000 – $50,000,000). Construction Finance: (Corporate Construction/ Project Finance from: $1,000,000 – $100,000,000).

Business Finance Broker Ltd. bridges the gap and opens the door between your business and a network of 1000+ Swiss family offices, hedge funds, venture capitalists, and private lenders. The very sources that will provide your business the much needed financing most lenders and banks will not.

Business Finance Broker Ltd. differs from the many competitors out there, we are in the business of securing funding for your business. We do not promote or condone the hard sell, or false promise tactics used by the competition, we will tell you straight out within 72 Hours if you will qualify for funding.

We are so confident in our abilities to arrange the financing your business requires that we do not need to charge UPFRONT or APPLICATION FEES like our competitors; our commissions is earned when an offer of loan is made.

If we cannot arrange the financing your business requires nobody can, it really is that simple.

Arranging your financing requirements through Business Finance Broker is as easy as 1-2-3.

The world is in the grip of an economic downturn which in turn is leading to soaring unemployment rates. We should understand clearly that Finance jobs have always been a preferred career choice amongst the masses. Despite current economic situations surveys show that nearly three-quarters of all job seekers in the financial services sector believe they will be gainfully employed by the year end. More than 50% of these people also believe that they will receive compensation either at par or higher than present amounts in the finance sector.

What we need to bear in mind is that the finance sector is one of the hardest hit as the economy struggles to get back on track. Despite this there is an air of optimism amongst finance professionals in the job market.

Let us review some of the biggest hurdles one faces in landing a job in the financial sector. We can summarize as follows:

- Many companies have instituted a hiring freeze – no new hires for the year or that particular financial period.

- Competition is exceedingly high – the finance sector, remember is one of the top job choices for people.

- Insufficient experience for the finance jobs available – the current trend is for companies to seek professionals who can turn business around – not every one has this high level of experience and expertise.

Okay! Let’s move on from hurdles to the mood set of the finance job seekers. The mood surprisingly is very buoyant and optimistic despite the tough road ahead. Surely you know that you have many challenges ahead of you in your chosen field of finance due to the current market situation. Don’t let this be a deterrent in any way. Continue to hold fast to your aspirations and seek the goals you have set for your self.

What about the younger generation who have chosen finance job as their career path? Let us look at the finance graduates who are emerging into the finance job market. They feel it is a good year to be graduating and a strong need is felt for continued education with the industry changes that are being made every year.

Financial planning and non-banking sectors are seeing the highest recruits presently. He feels the recent volatility in the mortgage industry and the decline in the housing market will have some impact going into fall, but overall says it appears to be stable. Most recruiters are cautiously optimistic in the present economic conditions.

Some Tips to Succeed in the Finance Job Market

As finance professionals seeking a job in present economic conditions, here are some tips you can act upon to push yourself ahead of the competition.

Tip #1: Improve and Update your Skills Set – the basic thing that will put you ahead of the competition is to have a skills set that is better than your competition.

Tip #2: Polish Your Resume – presentation of your resume is very important and can effect a decision on whether you get the job or not.

Tip #3: Register with Finance Recruitment Consultants – the top recruitment houses is always in the know of the jobs available in the market. Register your resume with the best agencies for your finance job.

Don’t give up on your personal goals and aspirations. Fight for what you believe is the chosen career path for you and make a success. Markets will turn around as governments work overtime to bring about this change.