Skip to content
Jazoodle Logo white with orange double o binoculars - trademarkedJazoodle logo - all white trademarked
  • Features
  • Pricing
  • Blog
  • Help
    • Xero-Partner
    • MYOB-Partner
    • Qb-Partner
    • Are You A Financial Guru?
    • Project Analysis
    • Breakeven
    • Business Plan Template
    • Business Canvas
  • Contact
Login
Edit Content
Jazoodle Orange and black trademarked logo
  • Sign in Sign in to access our services
  • Get started Create your account with us
  • Our Plans
  • Terms And Conditions
Alternative Lending Solutions, Business, Business Loans and Credit, Business Risk, Cashflow, Financial Planning for SMEs, Small Business Financing

Business Financing Options For US Businesses

February 21, 2022 Andrew Paton-Smith No comments yet
Guest Blog Header Orlando Arden

Entrepreneurs and business owners are the financial life blood of communities, and wider economies in the provision of products and services.  According to the Small Business Administration (SBA) small businesses in the USA represent 99.9% of employers and thus are the top employer for millions of people. This is similar to most advanced economies, such as Australia and the UK. Employees rely on businesses to offer employment, income, and benefits (health and group life insurances, retirement plan’s, etc.), and in turn the business owners depend upon skilled labor to help support the efficient, and productive operation of their businesses. These relationships are vital towards supporting the economic operation of economies with earned income and employees as consumers, will spend into the economy.

Entrepreneurial Risk Taking

Business owners and entrepreneurs are risk takers. They decide to passionately pursue their vision to solve a problem, better serve a need in an area they feel is underserved and inspired by their sense of purpose to better serve that need.

Financial Risk

Business finance and financial risk is among the greatest risk small business owners take towards realizing their dream of operating a successful thriving business. As a result, most businesses will fail within their first year of operation. Of those surviving beyond their first year, 50% will fail to be in operation beyond 5 years.  According to the SBA, the number one cause of business failure is their lack of access to business capital. Further, only 20% of US businesses qualify for funding from a bank or other lender, which is needed to operate their business. That means that 80% of US based businesses are left vulnerable due to a lack of access to readily available capital. What disqualifies this 80% of small business to adequate funding?

  • A business owner having less than a 680 credit score, which is required by most banks. In many instances, the business owner may even have less than a 560 credit score, the minimum required to receive working capital from the SBA.
  • Both the bank and SBA require collateral (real estate) be offered to secure much needed funding. Many business owners either don’t have or choose not to offer their real estate as collateral.
  • Banks and the SBA require the completion of long, intensive applications, which oftentimes result in funding request approvals and disbursements that take either weeks, or even months to occur.

Identifying Business Financial Risk

What can a business owner to do to access capital to help their business survive and thrive? And how can a business identify that it may need access to additional operating or asset renewal capital?

A first check an be made with the Jazoodle platform. Assess your Cash Runway and business finance needs. This is the amount of funds within your business, based upon your average monthly expenditure and comparing this to the amount of currently available funds in your bank accounts. Most businesses should aim to have a cash runway of at least 3 months, ideally minimum of 6 months.

Your second check would be to assess both your invoice collection period and compare this to your supplier payment periods. Jazoodle assesses these periods for your business in seconds. You should aim for your client receivables period to be less than your supplier payables period. If so, you are probably generating cash efficiently. If not, you may be storing up problems within your business with cashflow issues likely to rear their head in the future

A third check would be to check how efficient your business assets are working for your business. Within Jazoodle, this is on the main dashboard, or efficiency area of the KPIs. Ensure that your asset turnover is at least 1. That means for every dollar invested in your business, it is generating at least a dollar in revenues. If less than 1, it may be time to assess replacing machinery, or other assets. You can create your own Jazoodle business performance and health dashboard here

Identifying Alternate Forms Of Finance​

Now you’ve established your funding need, and the problems associated with the raising of capital, especially unsecured or lower credit score capital, you should consider non bank lenders such as David Allen Capital. It’s with this vastly underserved need facing many business owners that a company based out of Milford, Michigan, named David Allen Capital (DAC), founded by a business owner, David Rutz, was created. DAC believes that business owners are “the rock stars” of American Capitalism and deserve a channel of capital receptive to and customized to serve their funding needs. How does DAC accomplish this?  In contrast to traditional funding sources being the bank or SBA, DAC serves business owners’ capital needs in the following ways:

  • The minimum credit score for a business owner to qualify for business capital is a minimum score of 450.
  • The business owner at a minimum must have been in business for at least 6 months.
  • No collateral required, but instead a business’ most recent 3 months of sales revenue verifiable from their business banking checking account, at $5k and greater in consistent revenue also qualifies them to receive working capital.
  • A 100% automated process where the business owner completes a brief on-line application, and submits it, will result in an immediate approval, and funding either the same or next business day. For working capital amounts approved for $25K up to $2M, $500K can be potentially funded in one week, and up to $2M funded within 2 weeks.

As a business services company, working capital for business owners is the primary way DAC uniquely help and serve the small business owner community. Additionally, DAC provides the following services: Business to consumer credit, health care plan coverage, merchant card processing, and recently, a revolving Line Of Credit from $5000 up to $100K, telecommunication services and equipment.

Summary

Small business owners need and deserve the funding support necessary for them to survive and thrive as the financial backbone of the US economy. The first step is to identify the capital need risks or opportunities within your business – Jazoodle can do this in seconds. Next, assess your own circumstances and credit score. Non bank lenders such as David Allen Capital have more business friendly criteria in which it assesses funding requests. For generations they have served and continue to serve its business and entrepreneurial clients.  DAC’s mission is to enable American business owners with a source of funding that both understands their needs and to assess and provide those funds efficiently, and effectively.

Written by Orlando Darden Jr, who is a partner at David Allen Capital https://davidallencapital.com/

  • Alternative Business Funding
  • Business Financing Options
  • Equipment Financing
  • Invoice Factoring
  • Lines of Credit
  • Merchant Cash Advances
  • SBA Loans
  • Small Business Loans
  • SME Financial Planning
  • Term Loans
Andrew Paton-Smith

Post navigation

Previous
Next

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Search

Categories

  • Accounting Industry News 1
  • Accounting Integrations 1
  • Accounting Technology 1
  • Accounting Tips 1
  • Alternative Lending Solutions 1
  • Bookkeeping Best Practices 1
  • Bureaucracy and Regulation 1
  • Business 22
  • Business Advisor 14
  • Business Advisory 1
  • Business Advisory Services 1
  • Business Automation 1
  • Business Finance 1
  • Business Forecasting 1
  • business growth strategies 1
  • Business Health Assessment 1
  • Business Loans and Credit 1
  • Business Performance 1
  • Business Performance Management 1
  • Business Performance Metrics 3
  • Business Podcasts 1
  • Business Risk 16
  • Business Strategy 1
  • Cash Flow Considerations 1
  • Cash Flow Forecasting 2
  • Cash Flow Management 1
  • Cash Flow Optimization 1
  • Cash Flow Strategies 1
  • Cashflow 13
  • cashflow forecasting 2
  • Cashflow Management 3
  • Company Performance 1
  • Corporate Governance 2
  • Economic Impact on Small Businesses 1
  • Economic Policy Impacts 1
  • Economic Volatility Management 1
  • Entrepreneur Insights 2
  • Financial Analytics 1
  • Financial Automation 1
  • Financial Health and Performance 1
  • Financial Health Monitoring 2
  • Financial Literacy 1
  • Financial Management for SMBs 1
  • Financial Metrics for SMBs 1
  • Financial Planning 1
  • Financial Planning and Analysis 1
  • Financial Planning for Hiring 1
  • Financial Planning for SMEs 1
  • Financial Software 1
  • Freedom of Speech and Business 1
  • Geopolitics and Business 1
  • Global Business Environment 1
  • Global Economic Challenges 1
  • Governance 12
  • Government and Policy Impact 1
  • Guides 2
  • Inflation and Business Strategy 1
  • Inflation Impact on SMBs 1
  • Insights 7
  • Jazoodle 4
  • KPI Dashboard 1
  • KPI Dashboards 1
  • KPI Monitoring 3
  • Leadership and Governance 1
  • Leadership Appointments 1
  • Operational Efficiency 1
  • Performance Improvement 1
  • Profitability Analysis 1
  • Small Business Finance 1
  • Small Business Financing 1
  • Small Business Management 1
  • Small Business Resilience 1
  • Small Business Strategy 1
  • Small Business Success 1
  • SMB Growth Strategies 1
  • SME Advice 1
  • SME Coaching and Mentorship 1
  • SME Financial Planning 6
  • SME Financial Tools 1
  • SME Tools and Technology 1
  • Strategic Business Management 5
  • Strategic Business Planning 2
  • strategic financial planning 1
  • Strategic Growth 1
  • Strategic Partnerships 1
  • Uncategorized 2
  • Workforce Planning 1

Recent posts

  • Picture of an office boardroom with blue sky looking out of the windows
    Business Valuation as Strategy: How a Company Valuation Can Drive Growth and Smarter Advisory
  • know your numbers blog. Picture of a professional business woman with grey background and blue blouse
    Understand Your Business Health in 60 Seconds with a KPI Business Dashboard
  • Image of Donald Trump Signing Tariffs
    The Impact of Trade Tariffs on Small Businesses’ Financial Health

Tags

advisor tools automated business valuation business advisory software business growth strategies Business Health Assessment business health metrics business performance metrics Business Sustainability business valuation business valuation service business value metrics Cash Flow Forecasting cashflow forecasting Cash Flow Management company valuation corporate valuation exit planning for businesses Financial Forecasting financial forecasting tools Financial Health Monitoring Financial Metrics financial performance analysis Financial Planning Tools fractional CFO tools Jazoodle KPI analysis KPI Monitoring MYOB business analytics Operational Efficiency proactive financial management QuickBooks tools for advisors real-time business insights revenue forecasting tools Small Business Financial Health SME financial health SME Financial Planning SME financial strategy SME Growth Strategies Strategic Business Management strategic financial planning Strategic Planning valuation as a service valuation software valuing a company Xero integrations

Related posts

Monochrome picture of business boardroom with Jazoodle logo in the corner
Business, Business Advisor, Business Health Assessment, Business Risk, Cash Flow Forecasting, Cashflow, cashflow forecasting, Governance, Guides, KPI Monitoring, SME Financial Planning, Strategic Business Management

Is Your Business Going To Be OK?

October 14, 2020 Andrew Paton-Smith No comments yet

Recent ABS statistics showed that between 60 and 70% of all businesses do not make it to their 5th birthday. Think of all that blood, sweat and tears within those businesses. There are a myriad of reasons for such levels. Two of the key reasons are 1) poor financial spatial awareness and 2) inadequate financial planning and forecasting. As a company, these […]

Business Performance Metrics,SME Financial Planning,Cash Flow Management,KPI Monitoring,Strategic Business Management,Financial Health Indicators,Monthly Business Review,Operational Efficiency,Business Sustainability,Financial Forecasting,6-business-indicators-you-should-check-every-month
Business, Business Advisor, Business Performance Metrics, Business Risk, Cashflow, Cashflow Management, Governance, Insights, Jazoodle, KPI Monitoring, SME Financial Planning, Strategic Business Management

6 Business Indicators You Should Check Every Month

October 7, 2020 Andrew Paton-Smith No comments yet

If, like thousands of other business owners, you are at times unable to see the wood through the trees, there’s some little tricks that you can use to ensure your business is on track – and these will only take a few seconds each month. We recommend checking at least every month, after closing your […]

Corporate Zombiism,Zombie Companies,Business Risk Assessment,Financial Health Monitoring,Strategic Business Management,SME Financial Planning,Corporate Governance,Debt Management Strategies,Business Sustainability,KPI Monitoring,corporate-zombiism
Business, Business Advisor, Business Risk, Corporate Governance, Financial Health Monitoring, Governance, SME Financial Planning, Strategic Business Management

Corporate Zombiism

July 6, 2020 Andrew Paton-Smith No comments yet

Corporate Zombiism According to Banerjee and Hoffman, (2018) a Zombie company is an established company that is being artificially kept alive and unable to service its mounting debts. Their key takeways from their research were: [Corporate Zombiism appears]: “ to be linked to reduced financial pressure, reflecting in part the effects of lower interest rates. […]

  • Terms
  • Pricing
  • Contact
  • News
  • Facebook
  • Twitter
  • Instagram
  • Youtube
Jazoodle Orange and black trademarked logo

Nexus Smart Hub
3 Amy Close
Wyong
NSW 2259
Australia

Call us
  • Australia
  • Australia 1300
  • USA
  • UK
Resources
  • Support center
Company
  • About us
  • Latest news
  • Contact us
Social
  • Facebook
  • Twitter
  • Instagram
  • Youtube

© Jazoodle. All Rights Reserved.