Managing Small Business Cash Flow is Simple... With this Tip!

Managing Small Business Cash Flow is Simple. With this Tip!.jpg

Profit Does Not Equal To Good Cash Flow

You can’t just look at your profit and loss statement (P&L) and get a grip on your cash flow. Many other financial figures feed into factoring your cash flow, including accounts receivable, inventory, accounts payable, capital expenditures, and taxation.

Effective cash-flow management requires a laser focus on each of these drivers of cash, in addition to your profit or loss. Rules of accounting define profit simply as revenue minus expenses.  However, a smart business owner understand the fact that whether you earned a profit is not the same as knowing what happened to your cash.

Managing Small Business Cash Flow is Simple... With this Tip!

Positive cash flow: This occurs when the cash entering into your business from sales, accounts receivable, etc. is more than the amount of the cash leaving your businesses through accounts payable, monthly expenses, employee salaries, etc.

Negative cash flow: This occurs when your outflow of cash is greater than your incoming cash. This generally means trouble for a business, but there are steps you can take to fix the negative cash flow problem and get into positive zone.

Despite the fact that cash is the lifeblood of a business, the fuel that keeps the engine running, most business owners don't truly have a handle on their cash flow. One way to keep that situation under control is by tracking your cash flow results every month to determine if your management is creating the type of cash flow your business needs. This also helps you get better and better at creating cash flow projections you can rely on as you make business decisions about expanding your business and taking care of your existing bills. Your cash flow troubles aren't going to fix themselves, so it's best to have a plan and be proactive.

Getting Control of Your Cash Flow Starts with LVRG.

Why getting to a position of excess cash flow is vital to a small business. (video)

Why getting to a position of excess cash flow is vital to a small business.jpeg

Cash flow also gives your business greater flexibility in responding to emerging dilemmas or making critical decisions. Confidence in cash flow makes it easier to make critical purchases in the near term rather than waiting. It also allows you to disperse cash in the form of dividends to shareholders or owners. This strengthens the bond between the company and its owners. You also have the ability to offer favorable credit terms to attract new buyers if you are less desperate for cash.

Why getting to a position of excess cash flow is vital to a small business. (video)

Uneven cash flow is one of the biggest challenges of small businesses throughout all industries. In a perfect world, you’d walk into your local bank and walk out with a business loan long before you wound up in a cash crunch. Well, those days are long gone! If you haven’t been in business at least two years, or lack good credit and collateral, chances are a traditional bank loan is never going to happen. 

Is Cash Flow Lending in your Business Future?

In order to deal with this shortfall, a cash flow loan may be your best option. For this type of business financing, lenders provide you funds and use your future expected cash flow as collateral for the loan. You’re essentially borrowing from cash that you expect to receive in the future by giving the lender the rights to a predetermined amount of these receivables. These are primarily used for working capital or take advantage of short-term ROI opportunities. Your credit scores will usually be checked, but they play less of a role. As the name indicates, the lender is more concerned with inspecting your cash flow (usually bank statements) to approve your application. Turnaround time is another great feature of a cash flow loan, as funding usually takes place in a matter of days.

What's the best way to manage my cash flow for my small business?

A cash flow loan may be used for any business expense, but some common uses are: 

  • Working capital
  • High ROI short-term opportunities
  • Purchasing highly-discounted inventory
  • Payroll
  • Marketing
  • Business expansion

Get up to $500,000 to grow your business in as little as 24 hours, regardless of credit.

How to get cash flow for your existing small business in Metro Detroit 2018. (video)


How to get cash flow for your existing small business in Metro Detroit 2018. (video)

Cash flow loans can be obtained despite low credit history and low exiting capital. A small business in Metro Detroit with only a few months of operating history also obtain cash flow loans from LVRG Funding. Lenders for small business cash flow loans do not consider existing assets of borrower, but counts on future cash flow projections. In case of traditional banks, it’ll be nearly impossible to obtain anything if a company does not have enough assets, a very good credit history, or no credit history at all.


Points to consider when determining if a cash flow loan is right for your business:

  1. Will it help you take advantage of inventory discounts? Imagine you have an opportunity to buy bulk inventory at a discount. A cash flow loan can help if you don’t have the money to make the purchase.

  2. Will it help you say “yes” to a job? Say you own a restaurant and are asked to cater a big event in the near future. To jump on the opportunity, you’d need to hire a few more servers, and you don’t have the cash. A line of credit or short-term loan could allow you to say “yes.”

  3. Are you entering a slow period? Another example: You own an ice cream shop and winters are slow. Ideally, you’d budget for this by saving more in the summer months, but a cash flow loan could get you through in a pinch.

  4. Do you have a lot of outstanding invoices? Many small businesses experience uneven cash flow because their customers pay invoices weeks or months after receiving their product or service. If you’re in this situation, a short-term small-business loan could bridge the gap, but consider invoice financing instead.

Short-term cash flow loans are best used for short-term projects that would divert money from day-to-day expenses but ultimately grow your business, like taking on a big contract with a major company or adding extra seating in your restaurant. If you need cash fast, a cash flow loan may be your lifeline.


For starters, we are a local small business funding company with a vested interest in Metro Detroit Small. We are an established small business finance company, backed by local finance professionals with an extensive track record of success. We combine data-crunching software with a human touch to come up with affordable funding solutions that best fit your needs. LVRG is a team of the right people, working with the right data, getting you the right-sized funding for your business. We know that time is of the essence when it comes to obtaining financing and our quick closing time will ensure that you get the money you need, when you need it. Headquartered in Detroit's Historic Ford Building, we are a “local” finance company dedicated to helping the local small business community thrive and grow. Give us a call today (855) 998-LVRG, we're here to help!

Shopping Online Small Business Loans and Merchant Cash Advance Lenders in 2018? Think Twice! (video)


Shopping Small Business Loans and Merchant Cash Advance Lenders? Think Twice! (video)

Since the onset of the 21 st century, the various access to small business loans have flourished. From typical business loans offered by local banks and credit unions to credit cards, crowdfunding websites, and specialized online lenders, (to only name a few), the small business owner has a plethora of financing options to choose from. Despite this commoditization of business funding, research on choice difficulty seems to suggest that it may be even tougher to choose an optimal funding source from so many alternatives.

Even within each category of financing sources, numerous lenders propose different procedures, rates, and terms, which can be quite overwhelming for the borrower. Decision research shows that having too many options often reduces engagement and increases decision difficulty for individuals in general. You’ll know what I’m talking about, if you’ve thrown away that 20th credit card advertisement envelop in your mailbox.

Moreover, the growth of online lending has resulted in the introduction of sub-optimal lenders that engage in less than ethical practices. Unfortunately, some lenders push small business owners to take on more credit than needed, or initially promise unsubstantiated terms and rates in a bait-and-switch scenario. The reality is, with zero regulation in small business finance and the merchant cash advance industry, coupled with the fact that anyone can buy their way to the top of a search engine... it's the wild west and thousands of small business owners are learning a very dear lesson, the hard way.


Here's the problem.... Do you know that there are NO requirements needed to "sell" small business loans and merchant cash advances? I use the word "sell" because that's exactly what most small business funding companies and loan brokers are doing. They are NOT offering prudent small business financing solutions that make sense for your particular business, they are "selling" merchant cash advances and other small business funding products to earn a commission. They could care less about your business, or how deep of a cash flow crunch you will wind up in, they are using you for a commission check and telling you anything you want to hear, in order to make money off you. Literally, NO barrier to entry in small business finance. No education. No experience. No certification. No schooling. No classes. No tests. No nothing. Would you undergo open heart surgery from someone you found on Craigslist? What about getting on an airplane with someone who calls themselves a pilot, although has never flown a plane. How does getting a cavity filled by your local butcher sound? Would you have your estate planned by someone who's broke or buy a stock from someone who doesn't know the difference between NYSE or DJI? Hiring a stranger who hates kids to babysit your newborn? Those analogies are about as ridiculous as trusting the future of your business and the lively-hood of your family in the hands of a telemarketer or loan broker with no knowledge, education or experience in finance and/or business.

Shoulda, woulda, coulda... Don't put your business at risk shopping online for small business loans.

Folks, MOST online lenders are NOT finance companies; they are call centers ran by very young sales reps in cubicles without any knowledge, or background in finance; and zero experience in business. We have never seen so many small businesses implode, and often times it's due to taking on way more debt than the business can handle, stemming from an unethical loan broker or immoral small business loan lender.

How to Shop for a Small Business Loan and Merchant Cash Advance Effectively (Video)

For no-nonsense small business financing, offered by a team of experts who not only care, but also have the wherewithal to advise you properly, the choices is obvious.... Call (855) 998-LVRG or click below, we're here to help!

How to Shop for a Small Business Loan and Merchant Cash Advance Effectively (Video)


How to Shop for a Small Business Loan and Merchant Cash Advance Effectively (Video)


The trend of shopping small business loans may be more damaging than you realize... Thousands of small business owners are doing this all wrong, and literally putting themselves out of business by accepting way more capital than their cash flow will allow them to pay back.

Shoulda, woulda, coulda... Don't put your business at risk shopping online for small business loans.

If you own a small business, chances are you've probably looked into the myriad of financing options available to you. In today's online and digitally connected business world, nearly all small business owners have 'shopped' banks, loan brokers, online lenders, loan platforms, etc., simply to see what kind of financing options are being offered. Heck, you don't even have to go out and search for financing anymore, it's practically being thrown at you from every angle. From telemarketer solicitations, loan brokers harassing you, social media constantly in your face, postcards arriving in the mail, flyers landing on your desk, banner ads flooding your search engines, pop ups appearing on every website you visit and emails flooding your inbox. All promising the lowest rates, best terms and instant pre-approvals for hundreds of thousands of dollars simply for having a pulse! These days, you can't get away from all the small business loan offers if you tried.

The more you "shop" for small business loans, the better rates and options you'll receive... Right?

It is important to remember that small business financing is meant to be an individual solution that fits your specific business, business model and goals. Business loans are NOT meant to be bought, sold, or haggled over. So, before you start filling out countless applications and forwarding your financial information to everyone promising a better rate and more money, consider your business' complete financial standing, the purpose of the loan and just how 'shopping' for the best rate could negatively affect your credit standing and the future of your business.