Established in 1953, the Small Business Administration (SBA) is a division of the U.S. Department of Commerce, created to help individuals operate small businesses in the U.S. One of the ways this agency helps small business owners is with financing through SBA loans. Specifically, the Small Business Administration guarantees loans to qualifying businesses that do not currently meet their bank's lending criteria. If you can't get a business loan from other sources, the SBA might be a good option.
Here's how it works: The SBA guarantees loans from commercial banks that provide the capital for the business loan. This way, the financial institution, such as The JPMorgan Chase Bank, will lessen the risk taken in extending the credit. Chase provides Small Business Administration (SBA) loans. Chase is also a SBA preferred lender, which means we can process your loan application faster. Chase has helped many businesses get the financing they need, even when other financial institutions have turned them down.
SBA loans can help you get the credit you need to start or expand your business. To learn more, visit the SBA web site at www.sba.gov.
Essentially, cash flow is the money that comes into and goes out of your business. Here's an example. Let's say a used car dealer bought a car for $5,000, then sold it for $8,000. While the car dealer makes a profit of $3,000, he has a positive cash flow of $8,000 because that's how much more he has in the bank now that he's sold the car. If the dealer then bought another car for $5,000, he has a net positive cash flow of $3,000, which is the same as his profit. The kinds of things that impact your cash flow include inventory management, credit, capital expenditure financing, etc
Your working capital is simply current assets minus current liabilities. It's also an indication of your liquidity at any point in your annual business cycle. By looking at your working capital, you can tell if you have enough protection to handle emergencies and/or take advantage of opportunities on short notice.
It's a flexible, easy way to get immediate cash for your business needs. You can use a revolving line of credit to cover temporary cash-flow needs, finance receivables, purchase inventory, or take advantage of seasonal opportunities. Revolving lines of credit have variable rates, and the loan amounts typically range from $10,000 and up. Accessing your line may include writing a check, using an access card, telephone transfers or through chase.com. You repay the amount borrowed through monthly payments that can usually be deducted directly from your business checking account.
This is a fixed or variable rate loan, available in amounts from $5,000 and up for a specific length of time, e.g. five years. These funds can help finance capital expenditures like new equipment, redesigning your offices, or expanding your business.
Tax considerations are one important factor in deciding whether to lease or buy property. You may want to review your options with your accountant to determine which alternative is most advantageous for your specific situation. Another consideration is the fact that true leases are essentially "off the balance sheet" -- they're not considered debt, even though they are a liability to your company. Thus when it comes to obtaining financing, leases won't play much of a role in your overall debt from a creditor's perspective.