04 24 2014

04 24 2014

Study: Owners’ Business, Personal Finances Linked

CFED recently conducted a study to examine the financial product, service and capability needs of low and moderate income small business owners to see what affects their operations and potential needs for more working capital.

“In Search of Solid Ground: Understanding the Financial Vulnerabilities of Microbusiness Owners,” which was supported by MasterCard’s Center for Inclusive Growth, aimed to determine what financial products business owners need and whether the market is meeting those needs. The main finding of the study was that owners’ business and personal finances affect each other.

The study results are enlightening, as 92 percent of the country’s small businesses have five or fewer employees, including the owner. The owners also typically have a household income of $50,000 or less, which is less than the national median of more than $53,000.

Forty nine percent of respondents said they have two months’ business savings or less, while 55 percent said they could only cover a month of business expenses. Even more shocking is that 30 percent of respondents said they don’t have any business savings.

Business owners who suffer an emergency – such as a natural disaster that damages their facility or a fine from their municipality – may want to turn to nontraditional lenders like National Funding. These lenders offer greater ease of access and more flexible terms for owners of such small businesses that tend to be cash strapped.

A small business cash advance may help some owners make unexpected payments should they run into an emergency. All owners should focus on saving money and practicing good business habits to start building an emergency fund for such times.

A Forbes piece about the survey advises small business owners to:

  1. Seek financial advice: Other successful business owners, industry association heads and business development experts can help owners gain insight about being financially responsible.
  2. Stay organized: Keeping records of income and expenses is key to making sure business dollars go further.
  3. Stretch out payments: Sometimes, using credit cards to pay for expenses can make debit cards and cash flow last longer.

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Terms & Conditions

General Acceptance

Any applications submitted electronically shall have the same force and effect as if the application bore an inked original signature(s). The above information, together with any accompanying financial statements, schedules, or other materials, is submitted for the purpose of obtaining credit and is warranted to be true, correct, and complete.

 

US Patriot Act:

To help the United States Government fight terrorism and money laundering, Federal law requires us to obtain, verify, and record information that identifies each person that opens an account. What this means for you: when you open an account, we will ask for your name, a street address, date of birth, and an identification number, such as a Social Security number, that Federal law requires us to obtain. We may also ask to see your driver's license or other identifying documents that will allow us to identify you.

 

For Loan/Merchant Services:

The Merchant and Owner(s)/Officer(s) identified in the application (individually, an “Applicant”) each represents, acknowledges and agrees that (1) all information and documents provided to National Funding, Inc. (“NF”) including credit card processor statements are true, accurate and complete, (2) Applicant will immediately notify NF of any change in such information or financial condition, (3) Applicant authorizes NF to disclose all information and documents that NF may obtain including credit reports to other persons or entities (collectively, “Assignees”) that may be involved with or acquire commercial loans having daily repayment features and/or Merchant Cash Advance transactions, including without limitation the application therefor (collectively, “Transactions”) and each Assignee is authorized to use such information and documents, and share such information and documents with other Assignees, in connection with potential Transactions, (4) each Assignee will rely upon the accuracy and completeness of such information and documents, (5) NF, Assignees, and each of their representatives, successors, assigns and designees (collectively, “Recipients”) are authorized to request and receive any investigative reports, credit reports, statements from creditors or financial institutions, verification of information, or any other information that a Recipient deems necessary, (6) Applicant waives and releases any claims against Recipients and any information-providers arising from any act or omission relating to the requesting, receiving or release of information, and (7) each Owner/Officer represents that he or she is authorized to sign this form on behalf of Merchant.(8) I consent to receive direct mail, faxes, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (9) this request is for business and not for consumer purposes.

 

For Equipment Services:

I hereby certify: (1) the information provided is true and correct, (2) you are hereby authorized to investigate all bank, credit, and trade references, and said references are hereby authorized to release any requested information to you or your nominee, (3) such authorization shall extend to obtaining personal credit profile in considering this application and subsequently for the purposes of update, renewal or extension of such credit or additional credit and for reviewing or collecting the resulting account, (4) this information may be transmitted by us to you and by you to underwriter(s) for the purpose of granting me credit, either electronically or manually, and that by submitting this application, I take full responsibility for transmission thereof, (5) I am over 18 years of age, (6) I acknowledge my rights under the Fair Credit Reporting Act, (7) I consent to receive direct mail, faxes, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (8) this request is for business and not for consumer purposes.

The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status or age (provided the applicant has the capacity to enter into the binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. If for any reason your application for business credit is denied, you have the right to a written statement of the specific reasons for the denial. To obtain the statement, please write to National Funding Inc., 9820 Towne Centre Drive, San Diego, California 92121.  Funding amount and credit approval is subject to a full credit profile review.