CAN Capital Blog

We've been at this since 1998 - we have a lot to share
CAN Cares
The Hidden Dangers Behind Debt Settlement Companies: A Cautionary Tale

In the complex world of financial management, individuals and businesses often find themselves navigating the treacherous waters of debt settlement. As we shared previously, while the allure of a quick fix to overwhelming debt can be tempting, the reality of engaging with some debt settlement companies can lead to a situation far worse than the original financial strain. Today, we share a cautionary tale that underscores the risks and ethical concerns associated with these companies, alongside a recent lawsuit that has brought to light the predatory nature of such practices.  This story has been edited for length and clarity.  Names and identifying details have been changed to protect privacy.  Individual experiences and outcomes may vary. A Cautionary Tale John Smith, a pseudonym for our client to protect his identity, reached out in desperation after his encounter with a debt settlement company John owns a small business, which faced significant cash flow issues. On a friend's recommendation, John sought to restructure and extend the terms of his existing loan through what he believed to be a reputable company. The debt settlement company promised to negotiate his debt from $100,000 to $50,000, offering longer terms and lower payments for a 35% fee of $35,000. Trusting their expertise, John signed the agreement, only to find his situation drastically worsened. The promised debt reduction did not materialize, and the total amount owed skyrocketed to $135,000 due to the added fee of the debt settlement company. The stress from this financial spiral took a significant toll on John's personal well-being and business stability, highlighting the severe consequences of defaulting on loans and potentially ruining future access to capital. Attempts to resolve the issue or get a refund from the debt settlement company were met with evasion and silence. A Legal Battle Against Predatory Practices This alarming tale is a stark reminder of the widespread challenges our society faces with the debt settlement industry. In a strikingly similar vein, the Consumer Financial Protection Bureau (CFPB) and seven state attorneys general recently sued a business for operating an illegal debt-relief enterprise and for illegally swindling more than $100 million from financially struggling families. The claims in this lawsuit highlight the deceptive practices and false promises that characterize the dark side of the debt settlement industry. Understanding the Risks As John Smith's ordeal vividly illustrates, debt settlement companies often promise more than they can deliver, emphasizing the absence of guarantees in their negotiations for lump-sum settlements. This approach not only risks accruing late fees and legal actions but also may significantly damage credit scores. Even if a settlement is reached, it may represent a default that can severely impact future access to capital, jeopardizing the stability and growth of businesses like John's. Debt settlement companies often recommend halting loan payments, a tactic that can lead to accruing late fees, legal actions, and significant damage to credit scores. They may negotiate for lump-sum settlements, emphasizing the absence of guarantees and the risk of default, even in the event of a settlement. This may severely impact a person or company’s future access to capital, putting their business in danger. Moreover, these companies frequently charge hefty upfront fees without guaranteeing any debt reduction, placing an additional burden on their clients. Ethical Concerns Debt settlement companies may exploit the vulnerabilities of individuals and businesses at their lowest points. They often offer false hope, charging exorbitant fees for services that may lead to increased debt, damaged credit scores, and legal complications. The ethical implications are profound, raising questions about the exploitation of financial hardship for profit. Navigating the Maze For those navigating the tumultuous waters of debt, it is crucial to approach with caution. Direct communication with lenders, leveraging reputable resources like the National Foundation for Credit Counseling, and considering legitimate debt consolidation loans as a means to pay off debts in full can offer a safer path to financial stability. Unlike debt settlement companies, reputable debt consolidation firms operate transparently, offer structured repayment plans, and do not advocate for delinquency on payments. It is crucial to: Conduct thorough research and due diligence before taking any action. Be wary of companies that charge upfront fees, promise guaranteed results, or advise you to stop making payments to your creditors. Consider reputable alternatives, such as direct negotiation with lenders or consulting with accredited credit counseling agencies. A Call for Awareness and Action The journey to financial stability is fraught with challenges, but the allure of quick fixes can lead to greater peril. The experiences of our client, coupled with legal actions against predatory companies, underscore the importance of awareness and cautious decision-making. By sharing these stories, we aim to empower others to seek ethical and effective solutions to their financial struggles, ensuring a safer path toward financial health and stability. Let the experiences of John Smith and countless others be a beacon, guiding you away from the treacherous shores of deceitful debt settlement companies towards the safer grounds of informed, ethical financial decision-making.

Read more...
Finances
Conducting a Mid-Year Business Review – A Small Business Guide
CAN Cares
Navigating Debt Settlement
CAN Cares
The Hidden Dangers Behind Debt Settlement Companies: A Cautionary Tale

In the complex world of financial management, individuals and businesses often find themselves navigating the treacherous waters of debt settlement. As we shared previously, while the allure of a quick fix to overwhelming debt can be tempting, the reality of engaging with some debt settlement companies can lead to a situation far worse than the original financial strain. Today, we share a cautionary tale that underscores the risks and ethical concerns associated with these companies, alongside a recent lawsuit that has brought to light the predatory nature of such practices.  This story has been edited for length and clarity.  Names and identifying details have been changed to protect privacy.  Individual experiences and outcomes may vary. A Cautionary Tale John Smith, a pseudonym for our client to protect his identity, reached out in desperation after his encounter with a debt settlement company John owns a small business, which faced significant cash flow issues. On a friend's recommendation, John sought to restructure and extend the terms of his existing loan through what he believed to be a reputable company. The debt settlement company promised to negotiate his debt from $100,000 to $50,000, offering longer terms and lower payments for a 35% fee of $35,000. Trusting their expertise, John signed the agreement, only to find his situation drastically worsened. The promised debt reduction did not materialize, and the total amount owed skyrocketed to $135,000 due to the added fee of the debt settlement company. The stress from this financial spiral took a significant toll on John's personal well-being and business stability, highlighting the severe consequences of defaulting on loans and potentially ruining future access to capital. Attempts to resolve the issue or get a refund from the debt settlement company were met with evasion and silence. A Legal Battle Against Predatory Practices This alarming tale is a stark reminder of the widespread challenges our society faces with the debt settlement industry. In a strikingly similar vein, the Consumer Financial Protection Bureau (CFPB) and seven state attorneys general recently sued a business for operating an illegal debt-relief enterprise and for illegally swindling more than $100 million from financially struggling families. The claims in this lawsuit highlight the deceptive practices and false promises that characterize the dark side of the debt settlement industry. Understanding the Risks As John Smith's ordeal vividly illustrates, debt settlement companies often promise more than they can deliver, emphasizing the absence of guarantees in their negotiations for lump-sum settlements. This approach not only risks accruing late fees and legal actions but also may significantly damage credit scores. Even if a settlement is reached, it may represent a default that can severely impact future access to capital, jeopardizing the stability and growth of businesses like John's. Debt settlement companies often recommend halting loan payments, a tactic that can lead to accruing late fees, legal actions, and significant damage to credit scores. They may negotiate for lump-sum settlements, emphasizing the absence of guarantees and the risk of default, even in the event of a settlement. This may severely impact a person or company’s future access to capital, putting their business in danger. Moreover, these companies frequently charge hefty upfront fees without guaranteeing any debt reduction, placing an additional burden on their clients. Ethical Concerns Debt settlement companies may exploit the vulnerabilities of individuals and businesses at their lowest points. They often offer false hope, charging exorbitant fees for services that may lead to increased debt, damaged credit scores, and legal complications. The ethical implications are profound, raising questions about the exploitation of financial hardship for profit. Navigating the Maze For those navigating the tumultuous waters of debt, it is crucial to approach with caution. Direct communication with lenders, leveraging reputable resources like the National Foundation for Credit Counseling, and considering legitimate debt consolidation loans as a means to pay off debts in full can offer a safer path to financial stability. Unlike debt settlement companies, reputable debt consolidation firms operate transparently, offer structured repayment plans, and do not advocate for delinquency on payments. It is crucial to: Conduct thorough research and due diligence before taking any action. Be wary of companies that charge upfront fees, promise guaranteed results, or advise you to stop making payments to your creditors. Consider reputable alternatives, such as direct negotiation with lenders or consulting with accredited credit counseling agencies. A Call for Awareness and Action The journey to financial stability is fraught with challenges, but the allure of quick fixes can lead to greater peril. The experiences of our client, coupled with legal actions against predatory companies, underscore the importance of awareness and cautious decision-making. By sharing these stories, we aim to empower others to seek ethical and effective solutions to their financial struggles, ensuring a safer path toward financial health and stability. Let the experiences of John Smith and countless others be a beacon, guiding you away from the treacherous shores of deceitful debt settlement companies towards the safer grounds of informed, ethical financial decision-making.

Read more...
Marketing Others Finances CAN Cares
CAN Cares
The Hidden Dangers Behind Debt Settlement Companies: A Cautionary Tale

In the complex world of financial management, individuals and businesses often find themselves navigating the treacherous waters of debt settlement. As we shared previously, while the allure of a quick fix to overwhelming debt can be tempting, the reality of engaging with some debt settlement companies can lead to a situation far worse than the original financial strain. Today, we share a cautionary tale that underscores the risks and ethical concerns associated with these companies, alongside a recent lawsuit that has brought to light the predatory nature of such practices.  This story has been edited for length and clarity.  Names and identifying details have been changed to protect privacy.  Individual experiences and outcomes may vary. A Cautionary Tale John Smith, a pseudonym for our client to protect his identity, reached out in desperation after his encounter with a debt settlement company John owns a small business, which faced significant cash flow issues. On a friend's recommendation, John sought to restructure and extend the terms of his existing loan through what he believed to be a reputable company. The debt settlement company promised to negotiate his debt from $100,000 to $50,000, offering longer terms and lower payments for a 35% fee of $35,000. Trusting their expertise, John signed the agreement, only to find his situation drastically worsened. The promised debt reduction did not materialize, and the total amount owed skyrocketed to $135,000 due to the added fee of the debt settlement company. The stress from this financial spiral took a significant toll on John's personal well-being and business stability, highlighting the severe consequences of defaulting on loans and potentially ruining future access to capital. Attempts to resolve the issue or get a refund from the debt settlement company were met with evasion and silence. A Legal Battle Against Predatory Practices This alarming tale is a stark reminder of the widespread challenges our society faces with the debt settlement industry. In a strikingly similar vein, the Consumer Financial Protection Bureau (CFPB) and seven state attorneys general recently sued a business for operating an illegal debt-relief enterprise and for illegally swindling more than $100 million from financially struggling families. The claims in this lawsuit highlight the deceptive practices and false promises that characterize the dark side of the debt settlement industry. Understanding the Risks As John Smith's ordeal vividly illustrates, debt settlement companies often promise more than they can deliver, emphasizing the absence of guarantees in their negotiations for lump-sum settlements. This approach not only risks accruing late fees and legal actions but also may significantly damage credit scores. Even if a settlement is reached, it may represent a default that can severely impact future access to capital, jeopardizing the stability and growth of businesses like John's. Debt settlement companies often recommend halting loan payments, a tactic that can lead to accruing late fees, legal actions, and significant damage to credit scores. They may negotiate for lump-sum settlements, emphasizing the absence of guarantees and the risk of default, even in the event of a settlement. This may severely impact a person or company’s future access to capital, putting their business in danger. Moreover, these companies frequently charge hefty upfront fees without guaranteeing any debt reduction, placing an additional burden on their clients. Ethical Concerns Debt settlement companies may exploit the vulnerabilities of individuals and businesses at their lowest points. They often offer false hope, charging exorbitant fees for services that may lead to increased debt, damaged credit scores, and legal complications. The ethical implications are profound, raising questions about the exploitation of financial hardship for profit. Navigating the Maze For those navigating the tumultuous waters of debt, it is crucial to approach with caution. Direct communication with lenders, leveraging reputable resources like the National Foundation for Credit Counseling, and considering legitimate debt consolidation loans as a means to pay off debts in full can offer a safer path to financial stability. Unlike debt settlement companies, reputable debt consolidation firms operate transparently, offer structured repayment plans, and do not advocate for delinquency on payments. It is crucial to: Conduct thorough research and due diligence before taking any action. Be wary of companies that charge upfront fees, promise guaranteed results, or advise you to stop making payments to your creditors. Consider reputable alternatives, such as direct negotiation with lenders or consulting with accredited credit counseling agencies. A Call for Awareness and Action The journey to financial stability is fraught with challenges, but the allure of quick fixes can lead to greater peril. The experiences of our client, coupled with legal actions against predatory companies, underscore the importance of awareness and cautious decision-making. By sharing these stories, we aim to empower others to seek ethical and effective solutions to their financial struggles, ensuring a safer path toward financial health and stability. Let the experiences of John Smith and countless others be a beacon, guiding you away from the treacherous shores of deceitful debt settlement companies towards the safer grounds of informed, ethical financial decision-making.

Jul 11, 2024

Finances
Conducting a Mid-Year Business Review – A Small Business Guide

As we approach the midpoint of the year, it’s crucial for small business owners to pause and reflect on the first six months of the year. A mid-year review is not just about checking whether you’ve met your targets—it's about strategic planning and setting your business up for success in the second half of the year. Here’s how you can conduct a thorough review of business so far that could be transformative. Step 1: Review Your Financial Health Evaluate Key Financial Metrics: Start by assessing your business's financial statements—profit and loss (P&L), balance sheet, and cash flow statement. How do these figures compare to last year? Are you meeting the expectations set at the beginning of the year? Analyze Cash Flow: Cash flow is the lifeblood of any small business. Look at your cash flow statement to understand the ins and outs of your finances. Are there any cash flow problems? Could these be addressed by better management of receivables, payables, or inventory? If cash flow is a concern, consider a working capital loan to smooth out the financial bumps. Step 2: Assess Your Business Goals and Objectives Goal Alignment: Revisit the goals and objectives you set at the start of the year. Which goals have you met, which are ongoing, and which have not been addressed yet? Understanding this will help you realign your strategies for the rest of the year. New Opportunities and Threats: The business landscape can change dramatically within a few months. Identify any new opportunities that have emerged and consider how you can leverage them. Similarly, recognize new threats or changes in the industry and plan how to mitigate them. Step 3: Review and Adjust Your Operations Operational Efficiencies: Look at your business operations for any inefficiencies that may be costing you time or money. Are there processes that can be automated or streamlined? Staff and Customer Feedback: Your employees and customers are great sources of insight. Collect feedback to find out what’s working and what isn’t. This can help you make necessary adjustments in your service delivery or customer interactions. Step 4: Update Your Marketing Strategies Marketing Performance: Review the performance of your marketing campaigns. Which marketing strategies have brought in the most business? Are there new marketing channels you haven’t tried that could potentially bring in more customers? Brand Health: Is your brand growing stronger in your market? Consider your brand’s health and visibility. It might be a good time to refresh your brand message or try new promotional tactics. Step 5: Set Up for Future Growth Adjust Business Plans: Based on your mid-year review, adjust your business plans accordingly. This might involve shifting resources to different areas, scaling back on some initiatives, or pushing harder where you’re seeing success. Financial Resources for Growth: If your review highlights opportunities for growth that require financial investment, consider your options for additional funding. Whether it’s through reinvesting profits or seeking external financing like business loans or lines of credit, make sure you have the financial resources to support your plans and opportunities that may arise. Leverage CAN Capital: At CAN Capital, you could get access to a variety of simple financing solutions designed to help small businesses grow. From working capital and flexible lines of credit to equipment financing, CAN could help you find the right financial solutions to meet your mid-year adjustments and support your business goals. Conducting a mid-year review is essential for any business that wants to stay on track and adapt to changing market conditions. By taking the time to thoroughly analyze your business’s performance and plan for the future, you set the stage for sustained success and resilience. Let this mid-year be a turning point for your business. Review, adjust, and charge ahead with confidence!  

Jun 07, 2024

CAN Cares
Navigating Debt Settlement

In the intricate landscape of business or personal finance, grappling with the burden of overwhelming debt often propels individuals to explore solutions that promise relief. Among these, debt settlement companies, sometimes masquerading as debt consolidation loan services, may seem like a viable option. However, the risks associated with these services are not to be underestimated. In this article, we will delve deeper into the dangers of debt settlement while providing an extensive analysis to empower individuals to regain control of their financial well-being. Understanding Debt Settlement Companies Debt settlement companies, often camouflaging themselves as debt consolidation loan services, often employ aggressive tactics and make misleading promises to target financially struggling individuals and businesses. Although operating within legal boundaries, they frequently resort to unethical and harmful practices. Here is a detailed breakdown of their method[1]: Encouraging Loan Default: Stop Payments: Debt settlement companies often recommend stopping all loan payments, allowing debts to go into default. This strategy comes with consequences, including accruing late fees and potential legal actions. The possible damage to personal and business credit scores weakens negotiation power during financial crises and impedes access to crucial capital. Extortive Negotiation with Your Lenders: Lump Sum Settlement: After accumulating funds, these companies attempt to negotiate a one-time lump sum payment significantly lower than the outstanding debt. This protracted process, taking months or even years, allows interest and penalties to accumulate, which could further negatively impact credit scores and access to future capital. Threats and Deception: Using scare tactics, such as impending lawsuits or asset seizure, is common. This pressure aims to force lenders into accepting lower settlements. Misleading Representation: Debt Consolidation Falsehood: Often portraying themselves as debt consolidation loan services, some companies falsely imply manageable repayment plans. In reality, it could create a financial trap that harms credit and inflates costs. Guaranteed Results Deception: Unrealistic promises of quick debt elimination or significant reductions ignore the complex realities of debt settlements and their possible negative impact on credit scores. Fees and Exploitation: Upfront Fees: Debt settlement companies frequently charge hefty upfront fees before achieving any debt reduction. This red flag places an additional burden on financially struggling clients. Hidden Costs: Additional fees that may be concealed within contracts lead to higher expenses and reduced debt savings. Ethical Concerns: Preying on Vulnerability: Debt settlement companies often prey on individuals and business owners at their most desperate, offering false hope and exploiting their financial hardship for profit. Misleading Services: Targeting business owners with no apparent financial difficulties, they represent their service as a legitimate method for consolidating debt into "fair" terms.[2] Unethical Practices: Using questionable practices, such as misleading claims, scare tactics, and deceptive business practices, raises significant ethical concerns. Navigating the Pitfalls of Debt Settlement While understanding the method of debt settlement companies is essential, it's equally important to grasp the specific pitfalls associated with their services: Expensive Fees: Debt settlement companies often impose fees ranging from 15% to 25% of the total debt amount, adding significant financial burdens to already struggling clients. Negative Impact on Credit Scores: Advising clients to halt payments exposes them to late fees, penalty interest, and substantial credit score drops ranging from 75 to 125 points.[3] Unpredictable Results: In many cases, debt settlement companies can only settle a portion of debts, leaving some accounts unsettled and contributing to ongoing financial instability.[4] Legal Consequences: Ceasing payments may lead to debt-collection lawsuits, which comes with the possibility of legal consequences. Proactive Communication, Resources, and Informed Action Addressing the potential for predatory practices by some debt settlement companies necessitates proactive solutions and informed action. It is crucial to acknowledge the importance of choosing reputable services that prioritize the well-being of clients over profit. Additionally: Proactive Communication: Adopt a proactive approach by directly communicating with lenders. Taking the initiative to foster open communication demonstrates a genuine willingness to explore and pursue viable solutions. Remember, if you are legitimately struggling and expecting to become delinquent on your loan, just call us! Like you, we want your business to stay on track. Utilize Resources: Consider leveraging resources like the National Foundation for Credit Counseling to establish a plan or access additional support. These organizations offer expert guidance and resources to navigate financial challenges. Empowerment Through Informed Action: When facing financial challenges, it's essential to consider options that support your long-term financial stability rather than quick, risky fixes. In contrast to debt settlement companies, reputable debt consolidation companies offer a more structured and reliable approach. These companies help by paying off your existing loan balances in full and then consolidating these loans into a new one. This consolidation typically results in a lower monthly payment, achieved either by extending the loan term or by offering a lower interest rate compared to your current loans. Importantly, legitimate debt consolidation companies operate with transparency and integrity. They do not encourage clients to become delinquent on payments, refrain from charging upfront fees, and avoid employing high-pressure tactics. By understanding these distinctions and the intricacies of your financial situation, you can embark on a journey toward relief from the burden of debt with greater control and confidence. In conclusion, the complex terrain of debt settlement demands a comprehensive understanding of its risks and pitfalls. As individuals navigate this terrain, it's crucial to recognize the predatory nature of some debt settlement companies and their detrimental impact on financial well-being. By advocating for proactive communication with lenders, leveraging reputable resources, and opting for transparent, integrity-driven debt consolidation services, individuals can reclaim control over their financial futures. Empowered by informed decisions and a commitment to long-term stability, individuals can embark on a journey toward relief from the burdens of debt, fostering a brighter financial outlook for themselves and their families.         [1] What is a debt relief program and how do I know if I should use one?. Consumer Financial Protection Bureau. (n.d.). https://www.consumerfinance.gov/ask-cfpb/what-is-a-debt-relief-program-and-how-do-i-know-if-i-should-use-one-en-1457/ [2] Fay, B. (2023, August 2). Predatory lending: Laws & Unfair Credit Practices. Debt.org. https://www.debt.org/credit/predatory-lending/ [3] Jackson, T. (2023, December 21). Best debt consolidation programs (2024). InCharge Debt Solutions. https://www.incharge.org/debt-relief/debt-consolidation/free-debt-credit-consolidation/ [4] What is a debt relief program and how do I know if I should use one?. Consumer Financial Protection Bureau. (n.d.). https://www.consumerfinance.gov/ask-cfpb/what-is-a-debt-relief-program-and-how-do-i-know-if-i-should-use-one-en-1457/

Mar 20, 2024

Finances
Adaptable Financing: A Closer Look at the Benefits and Strategies of Business Lines of Credit

In the dynamic world of business, access to flexible and reliable financing can make all the difference. One such financial tool that has proven to be invaluable for businesses is a line of credit. Unlike traditional loans, a line of credit offers businesses a versatile and convenient solution to meet their financial needs. In this blog post, CAN will help you explore the benefits of a business line of credit, compare it to a regular working capital loan, and delve into some common and strategic uses for this financial instrument. Benefits of a Business Line of Credit: Flexibility and Convenience: A line of credit provides businesses with a revolving credit limit that they can draw from as needed. This flexibility allows for quick access to funds without the need to reapply for a loan each time. Businesses can draw funds, repay, and redraw as the need arises. Interest on Utilized Amounts: Unlike traditional loans, where interest is charged on the entire loan amount, a line of credit only accrues interest on the amount that has been utilized. This can result in cost savings for businesses, especially when they only require intermittent access to capital. Responsive to Seasonal Fluctuations: For businesses with seasonal variations in cash flow, a line of credit is an excellent solution. It provides the necessary financial cushion during low seasons, helping to maintain a healthy cash flow throughout the year. Builds Business Credit: Responsibly managing a line of credit can positively impact a business's credit score. Timely repayments and judicious use of the credit facility can enhance the company's creditworthiness, opening up opportunities for better financing terms in the future. Comparison to a Regular Working Capital Loan: While both a line of credit and a working capital loan serve the purpose of providing businesses with the funds needed for day-to-day operations, they differ in their structures and applications. Loan Structure: A working capital loan provides a lump sum amount upfront, typically with a fixed interest rate and repayment term. A line of credit offers a flexible credit limit that can be drawn upon as needed, with interest charged only on the utilized amount. Use of Funds: Working capital loans are generally used for specific, planned purposes like purchasing equipment, inventory, or expanding operations. A line of credit is more versatile and can be used for various needs, including managing cash flow gaps, covering unexpected expenses, or seizing time-sensitive business opportunities. Some specific ways some small businesses use a business line of credit include: Managing Cash Flow Gaps: A line of credit is an excellent tool for bridging temporary gaps in cash flow, ensuring that operational expenses can be met even during lean periods. Seasonal Inventory Purchases: Businesses with seasonal inventory demands can use a line of credit to fund the purchase of inventory before peak seasons, ensuring they are well-stocked and ready to meet customer demand. Emergency Expenses: Unforeseen circumstances, such as equipment breakdowns or sudden repair needs, can be covered with a line of credit, providing businesses with a financial safety net. Opportunistic Investments: When lucrative business opportunities arise, having a line of credit allows businesses to quickly capitalize on them without missing out on potential growth.   Conclusion: In the ever-evolving landscape of business, having access to flexible and responsive financial tools is crucial. A line of credit stands out as a versatile and efficient solution, offering businesses the freedom to navigate various financial challenges and capitalize on opportunities. By understanding the benefits, distinguishing it from traditional loans, and exploring its myriad uses, businesses can harness the power of a line of credit to propel their growth and success. If a Business Line of Credit sounds like the solution your small business needs, explore your options with CAN Capital. Discover what you may qualify for without impacting your credit score at applynow.cancapital.com or simply give us a call at 1.877.500.8282. Our team is ready to assist and answer any questions you may have.

Feb 19, 2024

Finances
Year End Financial Check Up

As the year draws to a close, it's the perfect time for small business owners to reflect on their financial health and set the stage for a successful future. The year-end financial check-up is a critical practice for businesses of all sizes, but especially for small business owners who often wear multiple hats and have limited resources. Taking the time to review your finances can help you make informed decisions, plan for growth, and ensure a stable financial foundation for the year ahead. Review Your Financial Statements The first order of business is to dust off those financial statements. Your income statement, balance sheet, and cash flow statement are your financial compasses, guiding you through the business landscape. Carefully analyze these statements to get a clear picture of your financial health. Revenue: Look at your revenue trends and identify areas where it's grown or dipped. This data can help you fine-tune your sales and marketing strategies. Expenses: Take a deep dive into your operating expenses. Find areas where you can cut costs and boost your profitability. Profitability: Calculate your net profit and gross profit margins. These metrics will reveal the efficiency of your business operations. Tax Planning Don't let tax season sneak up on you. Year-end is the ideal time to consult with a tax professional and ensure you're taking advantage of all available deductions and credits. Deductions: Identify every possible tax deduction you qualify for, such as expenses related to your business, like office supplies, employee wages, or equipment. (Grab our guide to equipment financing deduction, Section 179) Estimated Tax Payments: Ensure you've made all required estimated tax payments. This step helps you avoid last-minute surprises or penalties. Retirement Plans: To lower your taxable income, consider contributing to retirement savings plans like a Simplified Employee Pension (SEP) IRA or a Solo 401(k). Assess Your Cash Flow Managing cash flow is crucial for small businesses. At year-end, take a close look at your cash flow to see if it aligns with your business goals. Accounts Receivable: Chase down outstanding invoices to improve cash flow. Inventory: Review your inventory levels. Decide if you need to reduce excess stock or invest more to meet future demand. Debt Management: Examine outstanding debts, including loans and credit lines. Develop a plan for paying down high-interest debts or consider refinancing if it makes financial sense. Set Financial Goals for the Coming Year With your financial check-up complete, it's time to set clear financial goals for the year ahead. These goals should be specific, measurable, and aligned with your business strategy. Setting targets for revenue growth, expense reduction, or market expansion can help keep you on track throughout the year. Secure the Right Financing If your year-end financial check-up reveals a need for additional capital to fund growth, cover unexpected expenses, or seize new opportunities, that's where CAN Capital comes in. We understand the unique financial needs of small businesses and offer various tailored financing solutions, including working capital loans, lines of credit, and equipment financing. Our simple online process could get you funding as fast as the next business day, and our team is always happy to answer any questions you have. A year-end financial check-up is the cornerstone of small business success. It's the compass that helps you navigate the ever-changing financial landscape of entrepreneurship. By carefully reviewing your financial statements, engaging in proactive tax planning, managing your cash flow effectively, and setting clear financial objectives, you'll be better positioned to steer your business toward prosperity in the coming year. So, start your year-end financial check-up today and pave the way for your small business's successful, thriving, and financially sound future.  

Dec 05, 2023

Finances
How Do You Know if Your Small Business is Ready for a Loan?

Your entrepreneurial heart set you on a path to building a small business that thrives. As a small business owner, you're hard-working, driven, resilient, and don't mind taking a small risk here or there. None of those things make it any easier to make decisions affecting the business you've worked so hard to build. Financial decisions are clearly one of the most important that you'll need to make at any stage. Taking on a loan of any type requires thought and planning. You can manage your finances effectively by taking a thoughtful approach to seeking aid. Begin with some in-depth planning of where the money will go, how much is needed, a confident forecast of its value, and how it will be repaid. Although the world of business loans can seem overwhelming, it is not necessary to let your fear of debt stop you from growing your business. A small business loan could provide the financial power your business needs to grow. So, how do you know when you're ready to take on a small business loan? Don't wait until you need the loan to apply; prepare ahead. Have a plan and write it out. Make sure you've built and maintained your business credit as well as your personal credit— lenders will look at both. Once you clearly understand your business goals and your financial situation, you can determine if you require a loan. It is best to use your loan for strategic investments that will bring you returns and help you achieve long-term success. With the vast array of types of small businesses, loans are taken for many reasons; CAN Capital put together three of the big ones: READY TO EXPAND YOUR BUSINESS Expanding your business is a great reason to apply for a business loan. For example, growing your products or services may help you attract new customers and increase sales. You should consider getting a loan before expanding to help you prepare your company for future growth and the financial requirements that go with it. Remember, don't wait. You should seek help as soon as you have established a plan to expand. Repaying your loan will become less of a burden once you have completed your expansion plans and started generating revenue. NEED UPGRADED OR ADDITIONAL EQUIPMENT Having the right equipment is essential for any small business. Regardless of the scale of the equipment, having the right equipment is essential to the success of your small business. Equipment financing is a great option to get the equipment you need to move your business forward. Equipment financing is different from a standard business loan and is an option that is simple, fast, and loaded with additional benefits. With equipment financing, you can spread out the cost of purchasing new equipment over a longer time period. This will allow you to maintain a strong cash flow while purchasing the equipment necessary to grow your business. CAN Capital has more information on equipment financing, its benefits, and if it's right for your business here. PREPARING FOR PEAK SEASON OR OFF-SEASON Just about every industry has a peak season, and an off-season, businesses can go from extremely busy to a lull throughout the year. Again, planning is essential here. A small business loan could help prepare your business for the busy season with added inventory, staffing, marketing, or other needs. Having the extra cash to invest in your business could help you to respond more effectively to the dramatic rise in demand for your services or products during peak periods. A successful season means you can pay back the loan without worrying about cash flow while improving your business's financial health. With a peak season comes an off-season. Securing cash assistance may be beneficial to maintaining a healthy cash flow during periods of low demand. Having the extra funding could help ensure that your business can continue its daily operations even if sales are down. It's not as difficult as it seems to decide if the time is right for you to apply for a small business loan. With solid business goals and a clear understanding of your financial situation, you can determine if a loan is right for your business.   CAN Capital has helped many businesses access working capital and equipment financing; we've been successfully working with small business owners for over 24 years. If you have questions, we are here to help! You can reach us at directsales@cancapital.com or 1-877-500-8282. If you are ready to grow your business now, you can get started online here.

Oct 03, 2023