Lending & Finance

 

01 18 2017

01 18 2017

Paying Bills and Covering Small Business Expenses

Managing business expenses isn’t easy. Taxes, utility payments, supplier invoices, store or facility maintenance, employee salaries and benefits are just some of the costs that small business owners need to stay on top of. Over time, it becomes easier to fall behind on payments or mismanage business expenses.

To help small business owners more manage their payments more effectively, here are a few essential pointers:

Avoid using cash

There are situations where it makes sense to pay bills in cash. For instance, Houston Chronicle contributor Al Bondigas advised that cash payments can make sense for smaller purchases, or if there is a sudden or urgent need for money. As a general rule, however, it’s in a small business owner’s best interest to make the majority of payments directly through a checking account, or even with credit. This helps to build a paper trail, which is important for later payment verification and future tax write-offs. Using credit and then making on-time payments is also a great way for small businesses to improve their FICO scores.

Keep business and play separate

In cases where there is a sole proprietor to a business, there’s a bit of wiggle room when it comes to keeping personal and company expenses separate. However, Entrepretunity contributor Eric J. Nisall highly recommended that wherever possible, small business owners draw a very clear line between personal and business expenses. In any event that there is overlap, Nisall suggested “Writing a check to yourself in the form of a distribution.” Muddling the line between person and business expenses can result in income tax liability shifts down the road, which can be a real headache – or if times are tough, much worse.

Consider automating your payment schedules

The topic of automation is somewhat dicey. The immediate benefit of signing for automatic bill pay is that you essentially eliminate the risk that you might miss a payment out of sheer oversight. This helps you to avoid late fees, simplifies management of overhead expenses and creates an opportunity to improve your company’s credit. However, it’s important that if you do this, you manage your company checking account more closely. Nerdwallet contributor Erin el Issa noted that automatic bill pay introduces the risk of account overdrafts or bounced payments, which will do much more harm than good in the end. Not only will you have to pay late fees, you may also be met with overdraft fees and other headaches.

Take out a small business loan

At some point, every business has needed – or will need – to tap into an immediate source of capital with the help of an alternative lender. Whether this need arises in response to difficult times, or as a way to manage future expenses in response to a growth opportunity, there are are plenty of lenders that can supply the quick injection of capital that your business needs.

Again, managing business expenses isn’t easy, but with a little bit of help from the right alternative lender, it can be easier for your small business to find a way forward.

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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 government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person and business that seeks a business loan. What this means for you: When you apply for a loan, we will ask for your business name, address, and Tax Identification Number. We will also ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.

 

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, text-messages, 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, text-messages, 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.

 

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By providing my wireless phone number to National Funding, Inc., I agree and acknowledge that National Funding, Inc. may send text and multimedia messages to my wireless phone number for any purpose. I agree that these text or multimedia messages may be regarding the products and/or services that I have previously purchased and products and/or services that National Funding, Inc. may market to me. I acknowledge that this consent may be removed at my request but that until such consent is revoked, I may receive text or multimedia messages from National Funding, Inc to my wireless phone number.

  
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.