Whether you own or run a small business, it’s important that you understand the importance of understanding your business finances. Your business finances can literally make or break your efforts at success. So what’s the best way to learn about them? Here are five good sources for getting started:
FOREX ADMISSIONS The world of foreign exchange currency exchanges is a terrific place to learn about business finances. With literally hundreds of online tutorials and guides to help businesses learn the basics, you can begin learning the basics of investing and trading currencies in a breeze. Bank accounts, loans, and other types of accounts will all be covered in great detail by the many FOREX tutorials available. Many of these sites also have great content on what types of forEX transactions are safe and which are not.
DEBT AND FINANCIAL Managerial style sites offer many useful tools for understanding your business finances. Many provide a fantastic collection of articles on money management and debt reduction, as well as how to work smarter, not harder. Debt and finance articles give helpful information on how to manage your credit cards, personal loans, business loans, auto loans, and other debt. They also will educate you on how different debt models work, and how the best model for your lifestyle will allow you to leverage the funds you have wisely to grow your cash flow. Many of these sites also offer sections that will educate you on how to manage your business finances with debt and on how to create a viable plan for debt repayment. All of these helpful finance articles to help you learn how to manage your debt and improve your cash flow.
Lending KPI Many people forget that there are different types of lending. Commercial real estate loans, business financing through banks and other lenders, commercial real estate loans, business loans with government funds, and even private sector commercial real estate financing are all available to businesses. These are just a few of the forms of short-term finance available for businesses working with limited funding. Understanding how each of these types of financing works can help you decide which type of financing is best for your business finances.
BANK ACCESS If you are running a business, then one of the primary concerns of your business finances is working capital financing. Working capital financing is the money you use to purchase raw materials or pay employees. While it is common practice for business owners to access their bank accounts to fund their business, many do not realize that they can also access their bank accounts through third party financial institutions like banks or credit unions. This type of financing is referred to as bank account financing.
SMALL SPILLS AND MONEY Every business should have a savings account just for their own use. Most business finances are kept separate from the owner’s personal finances because they involve so much more money. The small sums involved in keeping the business finances separate are nothing compared to the large amounts of money involved in keeping personal finances separate. It is very important for all business owners to keep a good track on their expenses and savings.
PAYMENT FOR RESERVE FOOTHING Loans are another common form of financing. When a borrower takes out a loan to start or expand a business, they are required by law to repay part of the loan at some point. Many businesses take out loans with the intention of repaying all of the loan by some specific date like the end of the first year, etc. Businesses should take into consideration how long they want to repay the money and what will be the total amount of interest and other costs associated with the repayment. Once you have decided on the amount you are going to repay, make sure you calculate your financial management plan because this will affect the type of financing you obtain.
SMALL SAVINGS Businesses should consider taking out short term and medium term finance to manage their finances for the long and short term. Lenders are usually willing to lend large amounts of money for small businesses because these businesses have less chance of defaulting on a loan. Small businesses usually require a shorter repayment period for financing.