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Posts Tagged ‘Companies’

If your small business were a grocery store or automotive mechanic shop, most every lender in the U.S. would immediately understand your business model. If you were to approach them looking for a line of credit, they would be able to rather quickly determine if your business is able to receive some small business financing from them or not. However, as the owner of a telecommunications company you know that this is not always the case for your industry. Traditional lenders just simply do not understand how telecom companies do business and the intracacies of telecommunications funding. If you are a large multi-national telecom company, funding abounds for you just simply because of the huge amount of revenue your business generates month after month. However, if you are a small telecom business, obtaining that line of credit can be much more difficult. When you approach a traditional lender for funding, you will likely find that they do not understand your business model and Read More

Are you a reseller, importer/exporter or own a trading company? Most resellers make their money by buying products from their suppliers at a favorable price, and then selling them to their customers for a markup. The business model is simple, clean, and above all, profitable. Many companies can easily pull margins of 15% to 30%. And I have even seen companies with margins that are close to 100%. So the business model is good. But it’s also challenging. Why? Well, when you buy from a supplier, they always want immediate payment or payment by letter of credit. Coupled with this is the fact that your customers always want to pay in 30 to 60 days. Many times, this payment timing discrepancy creates major problems. When this happens, most business owners will run to the bank and try to get a business loan. But business loans are very hard to obtain. Many businesses – especially small and mid sized businesses – will fall flat on their faces when they go to a bank for Read More