Today, many business owners continue to feel the credit crunch. However, business owners continue to have cash flow challenges that are affecting them in obtaining alternative financing.
“One of the biggest pitfalls that business owners make is a historical of Non-Sufficient Fund (NSF) activity. As a credit analyst, I have analyzed a dozen of deals with the same issues. I review businesses that deposit $100,000, $300,000 and even $500,000 per month. However, even though the monthly deposits are large, the cash flow management at some of these companies are very poor. Many of these businesses write checks and make payments without knowing what their present bank balance is. As a result, they bounce checks and causes their business bank account to be negative resulting in non-sufficient fund activity. Some of these business may have 10 NSFs in one month. If they are seeking a daily payment or weekly payment loan, they may not get approved, because the cash flow is poor. At the same time, some of these businesses may close out with low close out balances and even negative balances”. States Richard Lopez, Credit Analyst for Lendinero.
Businesses need to realize that large gross deposits will not help them obtain alternative business funding if they don’t manage good cash flow and have positive close out balances.
Launched in 2012, Lendinero initially launched from Miami targeting Hispanic businesses. Today, it has opened up its doors to cater to businesses from all ethnic groups and backgrounds. Lendinero provides funding when banking is not an option. Lendinero can provide a business credit decision within 24 hours and fund as fast as 7 business days.