Each Reedview Credit article takes one funding question from owners in New Bedford, Massachusetts and across Bristol County, MA and answers it fully: a direct answer first, Census counts for the county, a labeled example with invented figures, a checklist and follow-up questions.
What Is Monthly Cash Flow, and Why Does a Partner Read It Month by Month?
Monthly cash flow is the difference between the money that came into the business account in a month and the money that went out. Partners read it month by month because the average hides the weak months, and the weak months are when a payment is hardest to make. Twelve months of statements show the pattern.
What Is a Cash Flow Loan Compared With an Asset-Backed Loan?
A cash flow loan is approved mainly on the business's earnings and deposits; an asset-backed loan is approved mainly on what secures it, such as equipment, receivables or inventory. Many offers mix both. Loans for construction companies shows how a contractor's file leans on each.
What Is Cash Flow Lending to a Bristol County, MA Shop Owner?
For a shop owner, cash flow lending means the partner looks first at deposits and earnings rather than at property. A shop with steady card and cash deposits and modest existing payments has a stronger cash flow case than its collateral alone would suggest.
What Is Global Cash Flow When the Owner Has Other Income or Debts?
Global cash flow adds the owner's personal income and debts to the business's. Partners use it when the owner personally guarantees the loan, because the owner's mortgage, car loan and other obligations compete with the business payment for the same money.
By Reedview Credit · Updated
