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The United Capital Source Business Journal

You may have heard that factoring has a bad reputation. That it’s the small business loan of last resort for failing companies. Well, you aren’t failing. You just need more money right now to boost your furniture wholesale business. More money than you have on hand. Should you pursue accounts receivable factoring?

A thriving business benefits from a large percentage of positive working capital. Somewhere between profits and liabilities, this enables a small business to continue to invest in future growth. Yet, it’s common for a small business owner to have trouble understanding this concept. Most don’t have a good idea where the business stands. The Small Business Administration advises that working capital has a direct influence on a company’s ability to pay its debts and to remain financially viable. Small business loans can support this goal by providing an extra source of income when liabilities and assets don’t balance out well.

Women who go into business for themselves often face unique challenges, including obtaining the much-needed capital to cover startup costs. Many turn to personal savings and relationships for financial support. That’s according to a recent Babson College and Baruch College annual survey named the Global Entrepreneurship Monitor that surveyed 5,944 individuals between the ages of 18 to 74 about trends concerning women entrepreneurs. The study found that startups operated by women took on average $10,000 in capital. While some women reported that they needed half that amount to get started because they intended on borrowing from friends and family.

The holiday season has been good to retail owners in recent months. It’s been estimated that during Black Friday and Cyber Monday sales alone, consumer spending was up by as much as 3% over last year’s figures. Projections have been correct, according to just in reports from Trading Economics figures through December 14th. The National Retail Federation also reported that consumer spending is up, 56% of it taking place online. The average amount individuals spent on gifts for the holidays was $588.90; the largest portion spent on gift cards, clothing, consumer electronics, food and beverages. It’s no wonder that holiday sales generally represent around 20% to 40%of the annual revenues for most retail owners.

Now that 2017 is already weeks old, and Father Time has gone back to bed for his long winter nap, most small business owners have already begun working on their books for the New Year ahead. Being profitable and cutting costs are probably on the list of resolutions for small business owners, along with offering better services to customers. But what needs to be on the top of every small business owner’s to-do list is fixing any bad credit issues that may be present.

Traditionally, credit unions do not do business with non-members. In recent years, some credit unions have expanded their membership requirements, to encourage more participation. Even if you are a member, though, you might not qualify for a small business loan. Especially if you have bad credit.