(BPT) - How businesses access working capital has shifted, as traditional methods haven’t kept pace with the speed of business.

Growth is one of the biggest indicators of small business success. According to the Small Business Administration (SBA), more than 500,000 businesses have between 20 and 99 employees as of 2014. These established businesses are in the upper end of growth but have not yet met the threshold of being a medium business. In fact, 39 percent of growing companies — between three to five years old and seeking more than $100,000 — consider accessibility to capital their greatest concern. It’s during this stage businesses typically are faced with growth challenges.

Where can they turn for funding? These three alternative options may be worth considering.

1. Lines of credit

Lines of credit, provided by online lending platforms like Kabbage, offer established businesses in all industries the flexibility and convenience of accessible capital.

With Kabbage there are no fees to apply for a line of credit or annual costs to access funding. Small businesses don’t pay a thing to see for how much their business can qualify. Kabbage offers access to lines of credit up to $250,000, helping small to mid-market businesses access funding for operational costs and strategic investments like cash flow needs, purchasing specialized equipment, business expansions and launching high-growth marketing projects. There are also no obligations in how much a business is required to take. Businesses can take the amount they need from the line of credit when they need it, with no hidden fees or pre-payment penalties.

Lines of credit are faster and more flexible than traditional loans. In fact, Kabbage offers a loan application that can be finished in minutes — even through a mobile app — eliminating the time usually spent waiting in lines or filling out numerous forms.

2. Merchant cash advances

Some established businesses turn to a merchant cash advance (MCA) due to lower credit ratings, not having enough assets to provide as collateral, short-term financing needs or the flexible repayment terms.

Essentially, an MCA is an advance on future credit card payments. The cash advance is decided upon by the funding company, with the specific amount being paid back in full plus fees and interest.
With merchant cash advances, borrowers pay a set percentage of their credit card sales and make payments every time they receive credit card payments from clients.

3. Invoice factoring

Invoice factoring is another funding option established businesses use in lieu of bank loans. Factoring is the process of selling accounts receivables to a financing company for immediate cash.

Factoring helps businesses receive cash much faster than waiting for clients to pay their invoices. The financing company, known as the “factor,” pays the business the majority of the invoice upfront. Once the business receives payment from the client, they send those funds to the factor. The factor then pays the remaining percentage to the business.

Factors are more concerned with the financial health of the business’s clients rather than the business itself. These companies collect directly from a company’s clients and customers, sometimes requiring payment history validation from the business. A benefit of factoring is not assuming debt for money received; however, if clients are not creditworthy, you may not receive funding.
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To maximize this growth, consider looking online at www.kabbage.com/yes to learn about and find new options that fit your business. Merchant cash advances, invoice factoring, and lines of credit are three alternative solutions that help growing businesses go beyond traditional financing methods.

(BPT) - A challenge for any entrepreneur is getting access to capital. If you’re like many, you’re constantly looking for ways to reduce expenses and free up cash flow so you can be ready for anything, whether it’s a slow season or an opportunity to expand.

When tax season rolls around, you’re already taking a deep dive into your expenses and income for the past year. Don’t stop when you file. With all that information at your fingertips (and fresh in your mind), it’s a great opportunity to take a big-picture look at the health of your business and make sure it’s running as efficiently as possible.

Use the following tips to take your tax preparation efforts a step further and boost your cash flow in the upcoming year.

Dust off your business plan: No doubt when you started out in business, you were eager to put your vision to paper. Most entrepreneurs get busy with the day-to-day pressures of deadlines, and that vision can recede into the background. Schedule some time with your board members or business partners to revisit and update the business plan. Now that you understand the realities of your market, you should have plenty of ideas on creating the 2.0 version of your enterprise. When finished, it’s important to not allow it to gather dust again. Set goals and schedule check-in meetings with your team to make sure everything’s on track.

Update your budget: The nature of entrepreneurship is being agile in the face of change. Market trends, price changes from vendors and suppliers, effects of new laws and ordinances, even road construction are variable forces that can send anyone’s budget into a new direction. That’s why your budget isn’t ever going to be a spot-on prediction. Think of it as a plan. If you stay on top of it, you can spot the trends early and make adjustments right away so you can reap the full advantage — or head off problems before they become unmanageable.

Check your credit score: If you’re planning to raise capital to expand or make improvements in the next year, checking in on your credit score is an important first step you can take several months before you apply for the loan. Even if you have a business credit score, certain business loans still require a look at your personal credit score, especially if you’re a sole proprietorship. Visit Your.VantageScore.com to find free resources to learn your credit score. There’s also helpful information on what factors influence your score and things you can do that can help increase it over the coming months to help you get the best rate possible.

Create a tax strategy: The tax break Congress passed in December will save small business owners 20 percent on their tax bill this year. In the coming year, small business owners have many opportunities to capture more tax savings with the right plan and strategy. For example, if you’re planning a large equipment purchase, you may find yourself in a better tax bracket in 2019 if you time it before Dec. 31, rather than waiting until the following year as planned. Have a meeting with your accountant to discover more ideas.

Pay down debt: One way to use the windfall of your 20 percent tax savings is to pay down revolving loan debt. Doing so is a great way to raise access to working capital should you need it down the line. Depending on the source of credit, reducing your credit-to-balance ratio is one factor that could raise your credit score. Before you do so, make sure you have enough cash flow to meet your expenses.

Improve accounts receivable: If your business extends lines of credit to your customers, it may be worthwhile to implement a credit check policy on all new customers. Knowing they’re creditworthy before the fact can help you create the appropriate plan for them and protect your business. Credit reporting is also an effective way for even a small business owner to let customers know they are serious about collecting what’s owed. In the end, you’ll get paid faster and increase cash flow.

The life of an entrepreneur means things can change drastically on a dime. A thorough check-in with your finances can put you in the best position for success. To learn more about the tools and solutions offered by VantageScore, visit Your.VantageScore.com.

(BPT) - The dollar, the euro, the pound, the yen… the currency people use around the world has many different names, but it all shares something in common. Paper forms of currency are out and digital payments are in. The security and convenience of card based electronic payments and digital payments are driving a global shift away from cash. As consumers and merchants around the world become more and more digitally connected this shift will continue to accelerate.

All over the world, the shift toward cashless payments is well underway. On the beaches of Cabo San Lucas, taco and tamale vendors are starting to offer their delicious food to customers with the swipe or tap of a card on a mobile phone. In Singapore, consumers can rent bikes, pay for their morning coffee and split their dinner bill without ever needing cash, and in Warsaw, as cashless payments are becoming increasingly accepted, tourists can start to tap and pay their way around the city without carrying cash.

Changes abroad, changes at home

The United States is seeing similar changes. Cash and checks are on their way out and swiping, dipping, tapping and clicking are filling the void — benefiting consumers and businesses alike.

A recent Cashless Cities study from Visa, set to be released later this year, finds that if businesses in the top 100 U.S. cities transitioned from cash to digital payments, those businesses and their cities would experience net benefits of $312 billion per year. Businesses in New York City alone would net $6.8 billion while saving more than 186 million hours in labor. But the benefits of taking checks and cash out of the system do not stop at labor cost efficiencies. They include:

* Convenience. Consumers and businesses alike benefit from the speed and convenience of electronic and digital payments. Faster checkout times mean more sales for businesses and more time to spend on the important things in life for consumers.

* Security. Accepting cash payments has always placed businesses in a bind; as their revenue increases, so does their risk of falling victim to theft. Transitioning to cashless payment options enhances security and reduces risk for businesses and their customers.

* Reduced costs. Cash payments must be counted, stored and transported. There are costs associated with all of these processes. Adopting cashless payments saves businesses time and money.

Moving forward to take advantage of cashless opportunities

Many businesses across the country are already benefiting from going cashless, but for companies — particularly small businesses that have yet to take the leap — now is the perfect time to make such a change.

Visa is announcing The Visa Cashless Challenge, a call to action for small business restaurants, cafés or food truck owners to describe what cashless means for them, their employees and customers. Visa will be awarding up to $500,000 to 50 eligible U.S.-based small business food service owners who commit to joining the 100 percent cashless quest.

Business owners can learn more about the challenge and the other benefits of going cashless at www.visa.com/cashless. Complete rules and information will be available on the website on Aug. 15.

(BPT) - If you're carrying a balance on your credit card, don't worry - most Americans are too. In fact, the average U.S. household carries just over $15,000 of credit card debt, which isn't a bad thing when managed properly. Let's look at the big picture.

You most likely have more than one credit card - your first card is from your college days, and the second one you picked up because it had travel rewards. After a few years of properly budgeting your finances and making payments on time, you've improved your credit score quite a bit. That first card you got in college with the high interest rate no longer makes sense to have as a tool in your wallet. Sounds like it's time to consolidate your balances.

Balance transfers allow you to take the balances on your existing cards and transfer them to another credit card, usually at a lower rate. This new lower rate helps to reduce your level of debt because more of your monthly payment will go toward paying off debt principal, rather than paying interest.
"A balance transfer at a low rate makes it easier to pay down your balance, improving your debt-to-credit ratio as your balance decreases," said Randy Hopper, vice president of credit cards at Navy Federal Credit Union.

Reducing your debt sounds great, but wouldn't it be awesome to be debt-free? To truly benefit from a balance transfer, follow these simple tips:

Know when a deal isn't actually a deal

Typically, credit card issuers charge a fee associated with a balance transfer. This could be a flat fee per number of transfers, or percentage of the total balance you're bringing over to the new card.
"Keep an eye out for balance transfers with no fees, zero percent interest during the introductory period and a low rate after the intro period expires," Hopper says. This is where you can really make a difference to your credit score, but make sure you select a card that will give you enough time to pay down your balance in full.

Be sure to read the fine print on the zero percent offers, too. It could be in your best interest to choose a 2.99 percent APR that doesn't have a balance transfer fee, over a zero percent offer with a three percent fee. In the long run, it could cost you more than you're saving.

Consolidate from high to low

If you've got several credit cards and have trouble managing payments, consolidate to one card. You can save money on interest by moving your higher balances into this new account with a lower interest rate. Check the APR on all your credit cards to know which ones would be best for a balance transfer.

"This is a great option for store cards that usually have high interest rates, where credit unions never charge more than 18 percent," Hopper says.

Once you've consolidated your credit card debt, avoid making purchases until your debt is paid down. Remember, your goal is to become debt free. Making any new purchases will start accruing interest immediately, which isn't ideal.

Always pay on time

Make your payments on time or you could be hit with a penalty APR. Not only do missed payments negatively affect your credit score, but you could risk losing the low introductory rate as well. Forgoing your intro period APR could mean missing your goal of becoming debt-free.

"If possible, set up automatic payments along with alerts on your mobile device to ensure payments are made on time," says Hopper. "Maintaining a healthy track record will boost your credit score."

You'll lose them if you don't use them

Finally, when your balance hits zero, keep the account open. Doing so indicates your track record of reliability. As a general rule, credit cards that are in good standing over a long period of time positively impact your credit score. The longer these accounts are open, the better it is for your profile.

If you're looking for a lower interest rate, a simplified payment process, or both, balance transfers are for you. Reducing your credit card debt is within reach. With a good payoff plan and the right card, you could become debt-free sooner than you think!