To be a good manager, you must do things right. In order to be a great leader, you must do the right things.  As a leader of your organization, one of the top things you can do is to make sure you have backup plans in case of a change in your cash flow.  This may mean getting a bank line of credit for your small business or nonprofit organization.Is There an Alternative to a Bank Line of Credit?

Quoting the Rev. Dr. Martin Luther King, “The time is always right to do what is right.” If you are thinking about a bank line of credit (LOC) for your small business or nonprofit organization, but wondering if its right for you, read on.


What Can a Bank Line of Credit Do for Your Small Business or Nonprofit Organization?

If your yearly revenue is under $10 million then you can expect a hard time when seeking approval for a small business loan from a bank. Banks are not always a friend to small businesses.

A line of credit is one of the most important tools a small business or nonprofit can have. It is as significant as having a good accountant, a good team, and good software.

All businesses or nonprofits should have a LOC in place. There isn’t a orgnaization out there that doesn’t sometimes have a cash flow issue or emergency expense.

Uneven cash flow is frequently the result of seasonal slumps or poor account receivable turns. You may also have numerous cash advances and small business loans that you are paying. This means that your cash is going to these areas. As a result, you are vulnerable to running out of money. When the time comes for you to use your LOC and save your business, having the foresight to get the line in place ahead of time will make all the difference.


Where is the Best Place to go for a Bank Line of Credit?

Answer: not a bank. Banks have a multitude of restrictions that make it almost impossible for a small business to qualify for funding with a bank line of credit.

This includes having the correct debt to income ratio and keeping a minimum net worth. And those are not even the most difficult requirements to meet.One of the biggest things that a bank want to see is that you have collateral to back up your bank line of credit.

Also, you must have at least a 700 credit score or a bank won’t even consider your application. Also, they will only offer you a secure line of credit, which means you must have collateral to back it up.

Perhaps the most you will get is a home equity line of credit. This requires that you put your most important asset, your home, on the line to save your business. In the end, you might lose both.

You should also know that a bank can demand that you pay the line down to a zero balance every so often which is often very hard to do.


Is There an Alternative to a Bank Line of Credit?

Alternative funding companies are the way to go for a LOC if your yearly revenue is $300,000 to $10 million. These financing companies do not have to deal with stifling government regulations. They are private companies so they can move faster and charge less.

For a quick and easy remedy, your best option is a line of credit from a company like Financing Solutions ( They will give you a business credit line in about 48 hours.

A LOC from Financing Solutions costs nothing to set up and costs nothing until you use it. They work with many small business owners and nonprofit executive directors to provide instant business financing or a LOC.

Research shows that the main reason a business fails is that it simply runs out of cash. Without cash, you cannot make payroll, pay bills or handle expenses that you weren’t expecting. The companies that get a LOC in place seem to be the ones whose business lasts because having financing in place is a critical competent of survival.

Emergencies happen. Business is stressful enough and you shouldn’t have to worry about fluctuations in your cash flow. When you do need emergency business funding, it is great to have a LOC. There is nothing like when you take the right proactive steps and then watch it pay off.


How to do Business Right

On any given day, you have literally hundreds of decisions to make. One of them is how you will run your business.

To be successful, you must do the right things at the right time in the right way. Of course, it’s easier to say this than to find ways to do it. The following tips can help put you on the right path.

Stay ahead of the next guy (or gal)

Don’t stick your head in the sand and ignore what’s going on around you. Pay attention to the competition and to trends in your industry. Engage customers to learn where you excel and what you can do better. Find out where your competitors are lacking. Keep an eye out for challenges which are sometimes opportunities in disguise. If you keep your eyes and ears open, you will be ready to pounce when the right opportunity arises. Having enough small business financing helps, too.

Don’t take shortcuts

It might be tempting to skimp on materials or to do more with fewer employees. However, this will only serve to hurt you in the end. Cutting corners for the sake of saving money is the equivalent of cutting your nose to spite your face. When quality control slips, customers will notice and take their dollars elsewhere. Overworking good employees will create animosity and cause them to jump ship. It’s best to build your working capital, take your time and generate your success the right way.

Be good to people

They say that the people you meet on your way to the top are the same you see when you come back down. You don’t want to burn bridges or cut ties that might be useful later. Being callous and despicable will only leave you constantly looking over your shoulder and wondering when someone you hurt in the past will come back and stab you in the back. This doesn’t mean that you have to be a pushover. Just be straightforward, respectful and make your word your bond. In this way, you will gain the trust and admiration of all those around you, from vendors to employees. It may sound corny but when you treat people right, good things come to you.

Maintain your focus

Some small business owners waste time chasing every little potential opportunity. Others believe they must have a personal hand in every decision and action. They make staff members wait for a signature on even the smallest of tasks. Often you might find yourself repeating directives and assigning duplicate work. This type of behavior is expensive, time consuming and affects your progress. On the contrary, you must have a laser-like focus on your growth and survival. Don’t pursue prospects that do not directly relate to advancing your business. Anything that does not correlate directly to this goal is something you should delegate to employees you trust. It’s easy when you hire the right people the first time. Also, realize that you don’t always have all the answers. Communicate your ideas clearly and surround yourself with those who can carry them out.

Always deliver more

It’s easy to exist by doing the bare minimum. People know what to expect from you and you may maintain your current customer base. In other words, if it isn’t broke, don’t fix it. Many companies stay in business for years with this approach. However, since you are continuing to read this far, chances are that you are not happy with your status quo. It might be time to shake things up. One way to do this is to give more than everyone anticipates. Look ahead to discover not just what people want today, but what they will want tomorrow. Offer customers an outlet to engage with you and make recommendations. Use this as a stepping stone to foster trust and increase sales. Don’t just provide customer service, excel at it. Make doing business with you an experience. This is how you build a loyal clientele and a great brand.

Use technology to its full advantage

Even paper companies use computers and technology to get the job done. These days, you can find applications for just about anything you need to do. Of course, there are pros and cons, especially in regards to security issues and breakdowns. Still, you are better off with it than without. Also, your customers expect you to use it for speed, convenience and adaptability. This is how you connect, stay relevant, and make sure you are always on their minds. Then, when they are ready to make a purchase or a recommendation, your name will be the first on their list. When you understand the resources that are at your fingertips, you can make the right business decisions quickly and confidently.

Find the right source for fast business funding

No matter what you do in business, time is of the essence. The world spins fast and you must keep up. If you don’t, the competition will pass you by. Success comes to those who are ready for it. A business line of credit from Financing Solutions is an ideal way to ensure that your company remains flexible, nimble and successful.