Small businesses face unique challenges, especially when they are first getting off the ground.
On the one hand, their need for capital is at its highest because they don’t have an established revenue stream yet.
On the other, that same fact means that it is hard for the business to actually get loans from a bank. The problem is compounded for female business owners because they face problems like dismissive bank managers, inappropriate advances, and general lower respect compared to their male counterparts.
At CPN Numbers we make it a priority to ensure that our programs and products deliver business loans for women and support their growth as entrepreneurs. In this post, we’ll discuss the needs of small businesses and female business owners and how CPN Numbers fits into that picture.
The first thing to understand about businesses is that it is quite common for them to not have enough money on hand to pay for all of their expenses. When they bring in revenue or investment money, a business owner has to think about where the money will go. The best use of that money is some kind of project or acquisition that will support the growth of the company.
Having thousands of dollars sitting in the bank does nothing. Spending that money on a digital marketing consultant, however, can lead to better customer awareness and more growth. This focus on growth is the key to success and to surviving the initial period when a business has just been founded. A new small business has to take advantage of the fact that it is positioned to make a first impression on a lot of people.
This is not unique to small businesses, either. Big, established corporations like Wal-Mart, Amazon, and Bank of America also prefer not to keep cash on hand. Anytime they have some accumulated money, they want to invest it in growth or improving the business in some way. They only hold onto money if they believe that there will be tough times ahead and they need to prepare, or if they aren’t sure what they want to do.
If companies don’t like to hold onto cash, then how do they pay their bills? Their workers have to get paid, the utilities and rent need to get paid, and plenty of other expenses require cash. The answer is capital. Businesses make small, low-interest loans on a short-term basis to help them pay for these expenses. They need what is called working capital to help them pay for their day to day operational costs. They do need to pay a little bit of interest on these loans, but they are betting that they can make a higher return on their growth investments than the interest that they must pay.
That’s not the only use for capital. Another typical role for capital is to fuel projects and expansions directly. These include things like a restaurant building a new location or a store investing in a new online shopfront. The company can’t accumulate the whole cost of these investments up front, so they take out a loan and then pay back the money later once their project is up and running.
Challenges of Getting Capital
It should be clear now that there are several different reasons that businesses, especially small ones, need access to loans. Getting a small business loan isn’t a sign of weakness. It is just a tool to help businesses grow. However, obtaining capital is often far harder than business owners anticipate.
In the wake of the 2008 financial crisis and the ongoing economic uncertainty, banks are more reluctant than ever to lend to businesses. They believe that the risk of the business failing is too high and that they might not get their money back. As a result, they frequently refuse to issue loans or set high-interest rates that make the loans not worth it anymore. They also try to use special tactics to lead business loan applicants into other products, like mortgages and home equity lines of credit. These provide the bank with some collateral in case the business fails, but they also expose the business owner to additional risk and danger.
These challenges are significant because they interfere with the growth of the business during its most critical time: that initial phase when it is not yet established with a customer base and loyal fans. This is a fragile time. Business owners don’t just need a single loan- they need ready access to capital that they might need to use on short notice as things come up. In other words, they need a relationship with a lender. That can mark the difference between surviving a crisis and going under.
CPN Numbers prides us on being able to be the lender that helps small businesses in Florida succeed. A big part of what makes CPN Numbers different is the focus on business. Banks have to handle customers with accounts, mortgages, credit cards, and all kinds of different financial products. That makes it harder for them to do the research and become familiar with local businesses. They also tend to have policies and goals set from higher up in the corporate structure, and that restricts their flexibility. If the corporate office is warning them to be cautious, they will not lend.
At CPN Numbers, on the other hand, the focus on business loans and capital mean our staff is dedicated and knowledgeable about the problems that businesses face in the local area as well as potential solutions. That includes working capital needs, loans to fund new projects, and other issues. Instead of just providing loans, we handle many different products that can help small businesses succeed. For example, invoice factoring allows you to sell your future revenue for cash now. That helps you deal with intermittent payments and uncertain accounts, smoothing out your income.
Our programs for businesses owned by women and minorities are a major part of our mission. We feel strongly that we should support these communities by providing them with capital products that are customized to their needs and supportive of their businesses. This holds true for all of our service areas: business loans for women Miami, business loans for women Jacksonville, business loans for women Tampa, business loans for women Orlando, business loans for women St.Petersburg, business loans for women Hialeah, business loans for women Tallahassee, business loans for women Fort Lauderdale, business loans for women West Palm Beach, business loans for women Boca Raton, and business loans for women Brandon.
CPN Numbers truly values the relationships we build with local businesses and our nature as a local capital provider means that we are heavily invested in the success of your business. Unlike a big bank where you wind up as just another liability in a spreadsheet in a headquarters five states away, to us, you’re our neighbors and friends. If you need business loans for women or any other type of business capital, please consider us first. Between our deep experience with the Florida region and our selection of financial products, we’re sure to be able to find something that works for you.
When you succeed, we succeed. Nothing is more important to us than supporting local Florida business.
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