{"id":1792,"date":"2018-05-02T15:38:56","date_gmt":"2018-05-02T13:38:56","guid":{"rendered":"https:\/\/financiallyfitlife.co.za\/?p=1792"},"modified":"2019-12-29T13:51:39","modified_gmt":"2019-12-29T13:51:39","slug":"financial-tips-for-businesses-4","status":"publish","type":"post","link":"https:\/\/financiallyfitlife.co.za\/blog\/financial-tips-for-businesses-4\/","title":{"rendered":"Financial Tips for Businesses #4"},"content":{"rendered":"<p><strong>Types of funding for businesses<\/strong><\/p>\n<p>Lack of funding is one of the reasons many businesses fail. Lack of funding also discourages many potential entrepreneurs from starting a business. These are some sources to acquire funding for your business.<\/p>\n<ul>\n<li>Personal Savings<\/li>\n<li>Loans from family, friends or close associates<\/li>\n<li>Bank loans or credit cards<\/li>\n<li>Loans from government organisations focussing on assisting small businesses<\/li>\n<li>Get a partner for your business<\/li>\n<li>Angel funding (wealthy individuals who will provide funding in exchange for an equity share in the business)<\/li>\n<li>Venture capital (provide significant amounts of funding in exchange for an equity share in the business, but will only consider businesses who can ensure a good return on their investment)<\/li>\n<\/ul>\n<p><strong>Revenue and Cash flow<\/strong><\/p>\n<p>Whenever businesses apply for credit, ensure that your revenue and cash flow can cover the instalment. Also budget for a potential interest rate increase to avoid ending up in financial difficulty when you cannot afford the increased instalment.<\/p>\n<p><strong>Short-term debt versus Long-term debt<\/strong><\/p>\n<p>Short-term debt refers to debt which is due within one year and will reflect as current liabilities on a balance sheet. Short-term debt is typically used for short-term funding needs i.e. buying new computers or when there is a timing delay on your cash inflows. Short-term debt includes credit cards and overdrafts. Long-term debt refers to financing or leasing agreements which will be payable over the longer term i.e. new premises or expansion projects. Long-term funding will reflect as non-current liabilities on a balance sheet.<\/p>\n<p><strong>Negotiate better credit terms<\/strong><\/p>\n<p>Negotiating better credit terms i.e. lower interest rates and \/ or longer repayment periods with your creditors can have a significant positive impact on your cash flow. Budget for your creditor payments to ensure you can pay your creditors when it is due and you don\u2019t pay late. Maintaining a good credit record with your creditors will count in your favour when negotiating for better terms.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Types of funding for businesses Lack of funding is one of the reasons many businesses fail. Lack of funding also discourages many potential entrepreneurs from starting a business. These are some sources to acquire funding for your business. Personal Savings Loans from family, friends or close associates Bank loans or credit cards Loans from government [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":2443,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":""},"categories":[178],"tags":[90,55,99,100,73,101],"_links":{"self":[{"href":"https:\/\/financiallyfitlife.co.za\/blog\/wp-json\/wp\/v2\/posts\/1792"}],"collection":[{"href":"https:\/\/financiallyfitlife.co.za\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financiallyfitlife.co.za\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financiallyfitlife.co.za\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/financiallyfitlife.co.za\/blog\/wp-json\/wp\/v2\/comments?post=1792"}],"version-history":[{"count":1,"href":"https:\/\/financiallyfitlife.co.za\/blog\/wp-json\/wp\/v2\/posts\/1792\/revisions"}],"predecessor-version":[{"id":2444,"href":"https:\/\/financiallyfitlife.co.za\/blog\/wp-json\/wp\/v2\/posts\/1792\/revisions\/2444"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financiallyfitlife.co.za\/blog\/wp-json\/wp\/v2\/media\/2443"}],"wp:attachment":[{"href":"https:\/\/financiallyfitlife.co.za\/blog\/wp-json\/wp\/v2\/media?parent=1792"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financiallyfitlife.co.za\/blog\/wp-json\/wp\/v2\/categories?post=1792"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financiallyfitlife.co.za\/blog\/wp-json\/wp\/v2\/tags?post=1792"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}