Running a small business requires adaptability. Managing your finances and planning new product launches are important assignments. But if you have to turn down clients, prepare to launch a new product or location, or have a specific set of tasks that require a different set of skills than you have, you should consider hiring employees to grow your team.

 

Hiring is one of the biggest challenges for small businesses. Recruiting new team members is not just about filling a vacant spot; it is an investment in your company’s future. It requires careful planning, thoughtful decision-making, and a clear understanding of your business needs. 

 

However, the process can feel overwhelming, especially when navigating it for the first time. This article will walk you through the essential steps to hiring new employees ensuring you find the right fit for your team.

 

Recruiting Talent

 

Craft a Comprehensive Job Description

A precise and informative job description can save you time in the long run. Specify the essential skills, experiences, and qualifications for which you are looking. Describe the responsibilities, but also share the mission and vision of your business to attract those who align with your values. Compensation and benefits details, if competitive, can lure top candidates.

Use Multiple Avenues to Find Candidates

Platforms like Glassdoor, Monster, and especially LinkedIn can be invaluable. Your network—family, friends, and business associates—can also be a treasure trove of recommendations. A personal referral can sometimes lead to a better fit than an unknown candidate.

Attend Industry-Related Events

Trade shows, seminars, workshops, and job fairs are goldmines for networking and spotting talent. You can engage with potential candidates by setting up a booth or simply attending as a participant. This allows one to gauge their interest, expertise, and fit for your company in a more informal setting. Moreover, these events can give your business visibility among professionals in your industry, making them more likely to consider joining your team.

 

The Hiring Process

 

Begin by categorizing the received resumes into ‘yes,’ ‘no,’ and ‘maybe’ groups. Streamline this process by ensuring each candidate meets the essential qualifications, presents a polished resume free from glaring mistakes, and possesses the necessary soft skills.

 

Once your potential interviewees are shortlisted, design your interview strategy. Formulate questions that delve into the candidate’s mindset, problem-solving abilities, and possible fit within the role. 

 

Probe into scenarios where they have excelled or faced challenges. A question about managing a challenging customer scenario could be revealing for roles directly interacting with customers. 

 

Further, gauge their enthusiasm for your company by inquiring about their specific interest and how they envision their first few months. End the interview by inviting any questions they might have and discussing the subsequent stages in the hiring journey.

 

Upon identifying the perfect employee to hire, determine a suitable compensation package. Before formalizing the offer with a letter, acquaint yourself with your state’s labor regulations, ensuring your offer complies. 

 

Setting Up Payments, Benefits, and Systems

 

Hiring is just the first step. Integrating your new hire into your business system is next.

 

1. Get an Employer Identification Number (EIN), essentially a business’s SSN. A state or local tax ID might be needed, depending on your location.

2. All employees must fill out and return a W-4 or 1099 form. Decide on your pay schedule, leave and vacation policies, and which benefits you will offer.

3. Have a process to administer payroll. Make sure your team’s hours are correct and reimbursement requests are getting paid.

4. Ensure the new employee is equipped with the necessary hardware, such as a computer, and has access to all the software and platforms they will use. Send out invites or set up permissions in advance so they can seamlessly transition into their role from day one.

 

Employee Retention

 

Prioritizing employee retention not only helps in saving resources and maintaining productivity. It also preserves the foundational culture and knowledge base of the organization. Investing in your employees is an investment in the success and growth of your business.

 

Here is how you can keep your staff motivated and loyal:

 

• Competitive Compensation: Stay updated with industry benchmarks and ensure your compensation packages align.

• Avoiding Burnout: Understand that continuous work without breaks can lead to employee burnout. Ensure mechanisms are in place to give employees adequate downtime, regular holidays, and vacations. Create an environment where employees feel comfortable taking time off without fearing falling behind.

• Guidance to the Next Level: Ensure your employees know the path forward. Provide them with clear guidelines on how to advance in their roles. This could involve training programs, mentorship, or even a clear list of milestones they need to achieve to move up in the company.

• Benefits Beyond Salary: While a competitive salary is essential, employees often appreciate additional perks such as health and wellness programs, childcare assistance, and other non-traditional benefits.

• Engagement Activities: Organize team-building events, workshops, and other activities to foster camaraderie and keep spirits high.

 

The Benefit of Contractors

 

When your business encounters peak seasons, contractors might be a valuable solution during these crucial times. By bringing them on board, you can effectively lighten the load on your current employees, allowing them to focus on higher-priority tasks and strategic initiatives.

 

Contractors usually bring specialized expertise tailored for specific projects or temporary needs. Their proficiency often means they require minimal training, making their integration seamless. Furthermore, opting for contractors provides flexibility; you get the necessary skills without committing to long-term benefits or contractual obligations.

 

Wrapping Up

 

Every small business has its own growth trajectory. As you consider expanding your team, it is vital to pinpoint what your business requires explicitly. Whether adding permanent team members or bringing in specialized contractors, being strategic in your hiring decisions is crucial. By making well-informed choices, you set the foundation for lasting success and continuous growth in your business.

 

How FINSYNC Can Help

 

FINSYNC allows you to run your business on One Platform. You can send and receive payments, process payroll, automate accounting, and manage cash flow. To learn more about how we can help your business start, scale, and succeed, contact us today.

Few small businesses get going, much less succeed, without hard work, tenacity, and tolerance for risk. Having a good idea for delivering a product or service better than the competition doesn’t hurt, either. None of those attributes matter much, however, if your business is chronically low on cash. 

 

This is the reality for many small businesses; it can be their undoing. Nearly a third of small businesses fail because they run out of money, according to an analysis by business intelligence company CB Insights.  

 

Of course, there is no shortage of ways businesses can end up in dire financial straits. Sometimes, the economy hits a downturn, and projected sales dry up. Or there’s a problem with a key supplier that spoils what would have been a big payday.  

 

Even so, forward-thinking entrepreneurs know there are ways to put their business on the best footing to ride out the inevitable swings.

 

All too often, the source of small business cash flow problems is within your control. Have you set up your accounts payable and accounts receivable to maximize your cash flow? Are you able to accurately forecast your cash needs six months or a year from now?  

 

Are you certain you’re doing all you can to ensure your company can withstand a big, unexpected, and unavoidable expense? 

 

Here are three common reasons small businesses run out of cash — and what you can do to avoid a similar fate.  

 

Badly Timed Invoicing  

 

One of the first places to eliminate potential cash flow issues is in your business’s own back-office operations. This is where poor planning in how you set up your billing and other accounting practices can have costly ripple effects months or even years down the road.  

 

One big red flag is when businesses fail to coordinate their accounts payable and accounts receivable. This comes down to sending out invoices to your customers on a deliberate schedule that takes into account when you will need to meet your most pressing cash needs, like covering payroll, paying your bills, or other key expenses.  

 

This isn’t likely to work well if you’re still sending out invoices by mail. Even sending email invoices can be hit-or-miss if you opt to do it yourself or rely on an employee. There’s always going to be some distraction that ends up delaying when those invoices go out. And why risk that when there’s technology you can use to ensure it gets done on time, every time?  

 

FINSYNC allows users to automate bill payments and invoicing, along with payroll processing and other back-office tasks. Sending out invoices automatically increases the likelihood that you’ll be paid sooner. This reduces the possibility that you’ll come up short on funds to cover your business expenses.  

 

Lack of Foresight  

 

A big part of managing cash flow is having good insight into what it will take to financially navigate through the predictable ups and downs of your business cycle.

 

For example, retailers need to ensure they have the funding to place orders for goods in the spring so that they have fully stocked shelves in time for back-to-school sales in the fall. Also, they can hire more workers for the holiday shopping season in November and December.  

 

Your business has its own seasonal patterns when demand — and the potential for more revenue — is perhaps strongest. And conversely, when sales are likely to slow. By syncing up all your financial accounts, FINSYNC can help you better manage how you plan for these cash flow swings.

 

FINSYNC’s accounting and cash flow management platform provides you with an accurate, comprehensive view of your company’s finances, making it easy to get quick answers to questions such as which bills are coming up, the status of accounts receivable, and where you stand on covering payroll.  

 

This data is key to forecasting your cash flow needs. That way, you can take steps to avoid any funding problems well in advance. Features like built-in time and expense monitoring and employee time tracking can also make it easier for you to manage your cash flow.  

 

Things Outside Your Control

 

Sometimes, things happen that are well beyond your control in business. All you can do is hope that you’ve done enough to ride out the turbulence. This is what many businesses had to do more than a decade ago, when a booming economy, housing, and stock market skidded, triggering the biggest economic slump since the Great Depression.  

 

Many businesses didn’t make it, especially as the credit markets dried up. Those who survived learned that certain strategies can help. For example, building up cash reserves to cushion against times when sales slow. Lining up capital before you need it can be key, especially during a severe economic downturn that could lead to banks pulling back on lending. 

 

Even if you’ve been turned down in the past for a business loan from a traditional bank, there are more options than ever for small businesses to obtain the financing they need.  

 

The pullback in traditional lending after the 2008 financial crisis helped give rise to online lending companies that use technology to speed up the loan application process and broaden how they gauge a borrower’s creditworthiness, including looking beyond a business’ collateral. That’s led alternative lenders to become a key source of financing for small businesses in recent years.  

 

FINSYNC’s Network matches applications from small businesses with a variety of lenders in a matter of minutes, making it easy for you to choose who has the best option for your business.  

 

Finding other ways to extend your cash flow is also a good strategy when funding needs increase suddenly. FINSYNC Card Processing will allow you to use your credit cards to cover costs that you would normally only be able to pay with cash, such as your rent, freeing up your cash for other needs.  

 

While there are many trajectories for growth, successful business owners know investing in sound financial management will help get them there faster. No matter the challenges along the way.

 

How FINSYNC Can Help

 

FINSYNC allows you to run your business on One Platform. You can send and receive payments, process payroll, automate accounting, and manage cash flow. To learn more about how we can help your business start, scale, and succeed, contact us today.

Small business owners know that the customer is the top priority, but so many tasks demand your time that customer service often gets lost in the shuffle. 

 

Not only is it a good practice to keep in touch with customer needs, but statistics show it costs five times more to acquire a new customer than to retain an existing one. Not only that, according to one study, a 5% increase in customer retention can increase profit by more than 25%.

 

Needless to say, it makes good business sense to keep your finger on the pulse of your customers’ wants and needs. While not all small businesses have the luxury of a customer service department, there are many steps you can take to improve customer satisfaction.  

 

Listen to Customers 

 

Customers want to feel valued and heard. Be open to all feedback, and make sure you respond in ways that make your customers feel listened to. This will create a greater affinity for your company and encourage continued honest feedback. Sometimes, the best way to get feedback from customers is to just ask! It may seem obvious, but many small business owners overlook this simple step. Don’t let feeling awkward about it hold you back.

 

Build rapport with your customers, and start with those you have the closest relationship with. It doesn’t have to be a daunting formal conversation; simple, open-ended questions about a customer’s experience with your company, your product, or customer service can produce valuable insights. 

 

Ready to reach more customers? Create a simple survey on one of the many form-making platforms, such as Google Forms, and link to it from your homepage, share it on your social media platforms, or send it in a newsletter. Allow customers to remain anonymous for more honest feedback. 

 

Make it a habit to solicit feedback. Consider offering incentives. For example, a free download or a discount on their next service to thank customers for taking the time. Be sure to keep track of all this valuable information. Combine this survey and interview data with feedback from customer service for a more complete picture of customer experience. Analyze your compiled data for patterns and opportunities to improve.

 

Monitor Social Media 

 

Keep an eye on those social media accounts! Ensure you’re monitoring and responding to all mentions, comments, and private messages. Whether positive, negative, or neutral, every message should receive a direct response. This is vital to ensure that customers know their opinions matter to you and your company. 

 

Social media has transformed customer service. People often vent their frustrations with companies on social media. It’s important to be aware of what’s being said about your company and get out ahead of any issues. 

 

Not only is it important to know what comments people are directing at your company, but be sure to search your company name, abbreviations, and relevant hashtags regularly. Some customers will voice their feedback without directly messaging or linking to the company’s account.  

 

Social listening tools allow businesses to automate the process of monitoring social media by gathering all comments, whether or not customers directly mention a company. Many of these tools also track relevant keywords, customer demographic information, and overall sentiment.   

 

Social media is also a great place to solicit feedback! Ask simple and direct open-ended questions of your followers in posts. You can also share your surveys on your pages and encourage customers to reach out in comments or messages with any comments, questions, commendations, and complaints. This makes customers feel listened to. In addition, you can add this data in with the rest of your customer feedback for even more insight. 

 

Improve Response Time

 

It’s important that you address all customer correspondence directly, professionally, and in a timely matter. These types of communications can build up. Even if your business doesn’t have a dedicated customer service professional, be sure to check regularly. 

 

A great way to handle this with a small team is to dedicate 30 minutes every day to check all inboxes and respond. Ensuring regular and timely responses. You can even block this time out on your calendar as a reminder.   

 

Facebook business pages automatically monitor your average response time and report it to customers once you reach a certain threshold. This can let customers know how quickly to expect a response, help you keep track of how you’re doing, and even provide motivation to improve.   

 

If you find you’re getting a lot of similar questions and feedback from customers, why not try out a chatbot? Chatbots were once reserved for large companies that could afford to develop them. Nowadays, Facebook and many AI website-builder platforms offer the option to create your own chatbot.  

 

Offer Simple & Flexible Payment Options 

 

Technology has made it simple to collect payments, with friends easily splitting bills in real-time on P2P networks, so why are checks still the most commonly used form of payment for B2B transactions? Lack of options. Still, your customers expect the same convenience they’re accustomed to in their personal lives. You can offer it to them, even without an existing merchant account.  

 

FINSYNC is a secure payment platform that allows your customers to easily make payments without ever revealing their sensitive account information. It also gives your customers the option to use their preferred method of payment, including check, ACH, debit, or credit card. This freedom of choice will go a long way toward customer satisfaction. 

 

But what if you don’t have a merchant account set up to accept credit cards? No problem. FINSYNC makes it simple for you to accept credit card payments in a few quick clicks. The platform can even convert paper checks to ACH. You can still receive payments electronically if your customer prefers to pay by check. 

 

With FINSYNC Pay, all of your payments (no matter the type) are streamlined into one integrated platform that connects all of your accounts, which helps you stay on top of your cash flow.

 

Free up Time & Resources to Dedicate to Customer Service 

 

As much as business owners would like to dedicate time to improving value for customers, the reality of running a small business means that there’s rarely enough time for everything. If customer service tends to get pushed to the bottom of your to-do list, take steps to free up some time in your day-to-day schedule. 

 

Automating administrative back-office tasks can save you significant time so you and your team can spend less time pouring over spreadsheets and put the focus back on the customer. Automating your accounting with FINSYNC helps you streamline all payments going in and out, integrate with bank accounts, track cash flow, prepare taxes and see high-level graphs and reports all in one place. 

 

Don’t waste time tracking down invoices and keeping track of payment dates. With FINSYNC, you can automate manual processes like invoice requests. Automated reminders let your clients know when it’s time to pay. This will help you avoid uncomfortable late-payment interactions, which can hurt the rapport you’re working so hard to build. 

 

With all these back-office tasks off your plate, you can focus on what matters most: the customer! By keeping the conversation going with customers, addressing any issues quickly, using feedback to find opportunities to improve, and offering convenient payment options, even a small team can deliver ongoing customer satisfaction and boost retention.  

 

How FINSYNC Can Help

 

FINSYNC allows you to run your business on One Platform. You can send and receive payments, process payroll, automate accounting, and manage cash flow. To learn more about how we can help your business start, scale, and succeed, contact us today.

If you’re like most small business owners, you probably don’t enjoy pulling monthly financial reports and managing things like payments and bank reconciliations. If you did enjoy these things, you probably would have opened an accounting firm. Nevertheless, managing your small business finances is something that you have to do if you want to stay in business.

 

At FINSYNC, we’re committed to helping your small business succeed and know how many business owners struggle with bookkeeping. 

 

We turned to Linda Cappadona, a bookkeeper in the FINSYNC Network, for bookkeeping tips and insight into the best ways to keep your business in the black.

 

Don’t Neglect Bank and Credit Card Reconciliation

 

Think of bank reconciliations as balancing your business checkbook. It’s how you verify that the funds going in and out of your bookkeeping solution coincide with the funds going in and out of your bank account.

 

According to Linda, “The best place to start is by reconciling your bank and credit card accounts. That covers everything you’ve ever done because everything feeds either through a bank account or credit card. If you can do that, it gives you a really good sense of where your money is going.”

 

Start from your beginning balance and reconcile to the end of the month every month. If the closing balance in your accounting software doesn’t match the closing balance of your bank account, then you need to find out why and make a correction. If you don’t conduct bank and credit card reconciliations, you won’t be able to discover what’s causing the discrepancy and fix it.

 

Build a Payments Rhythm

 

The second rule of small business bookkeeping for beginners is to build a payments rhythm. Don’t push data-entry and reconciliation tasks off because it’s tedious and time-consuming. It’s crucial that you review your books at least once a week. 

 

It can help to set recurring calendar events and automate processes wherever you can. One way to build a payment rhythm is to automate your bookkeeping to ensure your books are always up-to-date. 

 

Falling behind on bookkeeping can create a mess, and problems become more difficult to undo. At the very least, make sure you always keep accurate and consistent records. 

 

“Before a bookkeeper comes on board, if you aren’t reconciling your transactions and bank accounts, you need to keep good records,” says Linda. “When you start a new business and are moving in a hundred different directions, that can be difficult.” 

 

Make a Category for “Ask My Accountant”

 

Once you have an accountant on your payroll, it’s important that you utilize them. Make a category for “ask my accountant” and keep them busy with questions. It’s a good idea to file any items you aren’t sure of into this category as they come up. That way, they don’t slow you down when making payments or running reconciliations. 

 

Then, at the end of the month (or sooner), you can bring all of your questions to your accountant’s attention to get the answers you need and broaden the conversation as to how you can mitigate inefficiencies and improve your business finances.

 

Hire a Bookkeeper

 

At some point, your books will become too complicated and time-consuming for you to handle. A pro can help you categorize, process bank reconciliations, prepare sales invoices, enter purchase invoices, and help you choose the right accounting software for your business. 

 

Most importantly, a professional bookkeeper will understand what is legal and what is taxable. And how to organize your accounting solution to maximize efficiency. Researching and learning these things yourself can quickly consume all of your time.

 

According to Linda, “Trust is the main reason business owners are gun shy of hiring a bookkeeper.” She advises business owners to get references, only hire from a reputable company, and don’t hire the cheapest person out there. 

 

“Remember, a good, ethical, trustworthy bookkeeper can streamline your business and monitor your spending habits while keeping an eye out for fraud or unusual activity, and in turn, ultimately save you money,” she says.

 

FINSYNC’s Virtual Assistance Network is staffed by skilled bookkeeping professionals like Linda Cappadona. Her role is to help you keep your books on track and improve cash flow management. 

 

Tapping an independent financial professional through FINSYNC’s network can help your business run more efficiently without sharply increasing your labor costs or investing time to go through a lengthy employee search. 

 

Here’s a refresher on 5 differences between an accountant and a bookkeeper.

 

Choose The Right Bookkeeping Software

 

The key to selecting bookkeeping for beginners software that will provide the greatest benefit to your business is finding software that takes a centralized approach to payments and helps you manage cash flow with less time, effort, and cost to your business.

 

FINSYNC is the only all-in-one payments platform that can help you keep your business finances in sync, centralize control of cash flow, and connect you with the right financial professional at the right time.

“FINSYNC has a really good platform for projects,” says Linda, adding, “I actually like the FINSYNC platform better than QuickBooks.”

 

“A business owner can easily get on the FINSYNC platform and see where everything is,” says Linda. “They can see where their money is going, where they need to cut back, and they can access reports. Such as Profit and Loss and Balance Sheets. As a business owner, that is what you should be focusing on.”

 

How FINSYNC Can Help

 

FINSYNC allows you to run your business on One Platform. You can send and receive payments, process payroll, automate accounting, and manage cash flow. To learn more about how we can help your business start, scale, and succeed, contact us today.

Integrated software that syncs up a client’s accounts gives business advisors a leg up with valuable insights that can help a business grow and prosper. Learn how fintech helps business advisors deliver better results for their clients.

By FINSYNC

It’s never been easier to pay bills, stay on top of accounts and even get access to credit.

Innovations in financial services applications are not only making transactions faster and more transparent. They also make it possible for users to organize and view data from various types of accounts. This provides valuable insights about what an individual, or business, does with their money.

The growth of Fintech is driving this trend. The nexus of technology and financial services can be a game-changer for business advisers. These new and powerful tools can deliver an accurate, comprehensive, real-time view of a client’s financial health. In addition to giving them the means to glean valuable insights. Insights that can help them save money and chart a more profitable course.   

Beyond Accounting Software   

Businesses typically rely on off-the-shelf accounting software that churns out a fairly limited, if useful, set of details about their books.

Their bookkeeper or other accounting professional will generate month-end snapshots such as an income statement and balance sheet. This is essentially a backward-looking snapshot of a business, offering a limited path toward a more forward-looking, strategic outlook.   

Business advisors generally work with this baseline to provide counsel on how their client can better manage their finances. Here’s where the new class of Fintech solutions can make a big difference.

When businesses use integrated, cloud-based cash management software to manage all of their finances, they open the door to proactive work. Such as mapping out a big-picture strategy. An area where a business advisor can really add value.   

The key is in linking the digital platforms used to handle everything from making payments and processing payroll to automating invoicing and tracking employee work hours. This integration makes it possible to analyze data from the various components of the business. In a way that yields more thorough, intelligent business forecasting.  

Consider the task of cash flow analysis. A business advisor can more easily and accurately forecast a business’ cash flow when the firm uses integrated financial software.   

This type of approach provides an up-to-the-moment view of a company’s payables, including payroll and receivables, and can be used to automate tasks like invoicing and bill payments in order to maximize available cash ahead of expenses, such as payroll or an essential purchase of supplies.   

The result is something every business can use more of strategic flexibility. 

Valuable Insights, Better Outcomes   

Armed with more useful accounting data, business advisors are likely to offer more valuable insights. Such as identifying whether a marketing campaign is justifying its cost. Or which products or services the company should focus on to maximize sales in the next year.   

Business advisors can also glean valuable insights when a small business client connects their payroll system with project profitability software. This enables them to offer clients both short-term advice and long-term advice. Such as “you’re over budget on phase 1 of your project” or “you’re not adequately covering the cost of your transportation needs.”   

Not Just for Clients   

An integrated system like FINSYNC’s financial platform connects a business’ financial transactions in one place automatically. This can help business advisors build projections that translate into more profitable decisions for their clients.   

Fintech software can also help business advisors manage their own business while handling their client-facing tasks more quickly and efficiently. A recent study by Schwab Advisory Services found that nearly 60% of independent financial advisory firms planned to invest in new technology this year.   

Digitized, cloud-based software like FINSYNC connects advisors to their clients easily, making it a snap to share charts and other presentation elements remotely. There’s also little to no need for manual data entry. Spending less time on tasks that can be automated means more time available for business development activity.

As we close in on the start of a new decade, the wave of Fintech innovations is expected to continue growing. Last year alone, global, venture capital-backed Fintech funding jumped more than twofold to $40.3 billion. This is from $18.3 billion a year earlier, according to CB Insights.   

The trend increases the likelihood that an integrated, software-led approach to managing finances will be more widely adopted by small businesses eager to remain competitive and save money — and that’s good news for business advisors tasked with the job of guiding them to a brighter future.

 

How FINSYNC Can Help

FINSYNC allows you to run your business on One Platform. You can send and receive payments, process payroll, automate accounting, and manage cash flow. To learn more about how we can help your business start, scale, and succeed, contact us today.

Most businesses are born from a great product or service and strong leadership. Unfortunately, many fail because of poor finances. Fortunately, there are several ways businesses can benefit from expert financial advice.

 

Companies that struggle with cash flow, delayed vendor or employee payments, or mismanaged bookkeeping understand the importance of a company’s financial health.  Still, six out of ten small business owners have not consulted with a financial advisor, according to a study by The American College.

 

Small business owners that handle all the back-office tasks themselves often feel that financial analysis should remain their responsibility. In fact, the longer your company operates or grows, the more difficult you’ll find it to manage your finances. Especially without seeking outside help. 

 

The 40% of small businesses that seek expert financial advice benefit from a second set of eyes that can help take tasks off of their plate and free up time to plan for long-term growth. 

 

Unsure if your business has reached a point where it will benefit from a financial advisor? Consider these three benefits:

 

Reclaim Valuable Time

As a small business owner, you expect to wear many hats — especially in the early stages of your company’s growth. However, when you start to get pulled in too many different directions, your business often begins to suffer. If you’re spending too much time on accounting and finances, it may be time for a change. 

Your time is too valuable for simple bookkeeping and accounting tasks. While integrated cash flow management, accounting, and payroll software will go a long way to help you streamline the management of your company’s finances, problem-solving and personalized planning require the insight of an expert financial analyst.

As your business grows, your financial concerns will also grow more complex. If you didn’t have time before, you certainly don’t have time to gain the financial expertise necessary to deal with these new challenges. Instead, your time should be spent focusing on what you do best for your business. Learn how FINSYNC can help you manage cash flow.

Benefit from a Wider Experience Set

The problems your business may face will often require expert guidance from someone with a deep understanding of the common financial pitfalls that frequently confront small businesses. A qualified financial analyst is backed by years of experience working with a variety of different businesses that have experienced a vast array of challenges. 

This wider experience set will help the financial expert see things that you can’t and suggest creative solutions to your problems. Having a second, objective set of eyes for your financials can also help you find new solutions to problems or help improve expenses in ways you didn’t see before.

 

Plan for Your Financial Future

The most important benefit of expert financial advice is the ability to plan for your company’s future. Once you aren’t spending time doing your own accounting and you have the benefit of expert advice, you can make use of:

• Projections: What are your objectives for the next 3-5 years, and how do you plan to reach them? Having accurate financial projections on your business growth is a major step to turning your business goals into real, measurable objectives with a clear timeline for success. Knowing the true financial health of your business and the likelihood of meeting your goals will help you put together a realistic plan for your future.

• Market Insights: The decisions you make for your business can be greatly affected by how the overall market will perform in the next few years. A financial analyst can provide insights into what the rest of the market is doing. This helps to prepare for any possible market fluctuations.

• Formal Financial Plan: How will you transition your business to a new owner? Do you plan to sell your business or pass it on to a family member? Having a formal financial plan is extremely important. The plan will help with how to manage income and expenses during a transition. In addition, how to set yourself up for retirement. A financial expert can help you with your exit planning. Making sure you and the business are in good financial shape when that time comes. Find out more financial tips for small business owners in this article.

 

There are a number of other benefits your business could see from gaining expert financial advice. The truth is, that many of these benefits won’t be clear until you tap an expert. They will provide an unbiased look at your financials. What issues are you dealing with that you aren’t even aware of? Where are you losing money?

 

How FINSYNC Can Help

 

FINSYNC allows you to run your business on One Platform. You can send and receive payments, process payroll, automate accounting, and manage cash flow. To learn more about how we can help your business start, scale, and succeed, contact us today.

What do restaurants, auto parts stores, and essentially all businesses have in common? They can’t survive for long without some combination of cash or financing.

 

A significant lapse in cash flow, for example, could jeopardize a restaurant’s ability to buy the ingredients it needs to serve the dinner crowd. Retailers may be able to stock some of their shelves on a consignment basis, but they still need to fund their payroll, pay rent, cover operating expenses, or make more ambitious moves, like opening up new locations.

 

Cash flow can fluctuate unpredictably, especially for startups and small businesses, which is why many small firms rely on credit cards and business loans to keep their doors open.

 

Loans backed by the Small Business Administration can offer attractive interest rates, but that won’t help if you don’t qualify. Meeting the requirements for a conventional business loan from a traditional lender can be difficult, especially if your business is just starting out or you have a so-so credit history.

 

The Decline of Small Business Lending

 

Traditional small business lending contracted sharply following the U.S. financial crisis in 2008. It has been slow to return to pre-crisis levels. Small businesses still find it difficult to get financing from traditional lenders, partly because many community lenders — traditionally a key source of small business financing — shuttered after the crisis.

 

Nearly 20% of small businesses report being denied credit, according to a survey by the Kauffman Foundation. 

 

Those business owners who get approved for a loan or line of credit often don’t receive the full amount that they were seeking. More than half of small businesses that applied last year for a loan of $250,000 or less received a smaller amount, according to the Federal Reserve. 

 

The typical reasons for being denied financing are low credit scores, too much debt, not enough collateral, insufficient credit history, and weak business performance.

 

An Attractive Alternative   

 

Small business owners who have been denied loans from traditional sources may have better luck getting financing from alternative lenders. Many have emerged in the last decade.    

 

These non-bank, online lending companies offer individuals or small business owners options with less stringent requirements. Many do not require collateral.

 

These lenders are a big factor in why the number of small businesses that say they’re able to access the capital they need has been rising in recent years, according to the National Small Business Association.   

 

Business applications to online lending companies have been increasing. Some 32% of applicants turned to online lending in 2018, up from 24% a year earlier, according to the Federal Reserve.   

 

The U.S. market for alternative business loans is expected to hit $350 billion by 2025, according to research from Balboa Capital.

 

Easier To Qualify   

 

Applying for a conventional business loan typically requires firms to have several requirements. Such as a good credit score, providing collateral, and presenting their business plan. In addition to turning over all manner of financial records. Including tax returns and bank statements.    

 

Alternative lending companies don’t always need to see financial statements and will accept average credit scores. They’re also more likely than traditional lenders to lend smaller amounts. Another perk: Their online application process tends to be faster and easier.

 

That’s one reason 54% of businesses with riskier credit profiles are more likely to apply to an online lending company than a small bank, according to the Federal Reserve.   

 

Some Caution Required   

 

Getting approved for financing by an alternative lending company may be easier, especially if your credit score isn’t stellar. Business owners must weigh that against the possibility they may have to pay higher interest rates and loan fees. Check out this blog for everything you should know about your business credit score.

 

Many alternative lenders charge significantly higher interest. Consider that annual percentage rates, or APRs, from banks and credit unions, range from about 4% to 13%. Loans from online loan companies can run between 7% to more than 100%. That is depending on the risk, according to financial data firm ValuePenguin.

 

One reason for the higher APRs is online lenders’ financing terms tend to include sharply higher fees for loan processing.    

 

Alternative loans can be a lifeline for your business during hard times. Or a supplement to more traditional sources of financing that have fallen short of your needs. But always consider the cost-benefit ratio, especially if the alternative financing being offered is too expensive.    

 

To ensure you’re getting the best rates available, check out FINSYNC’s lending network. Businesses that use FINSYNC’s integrated accounting and cash flow management software can easily apply for a loan free of charge. Then, immediately receive offers with competitive rates from multiple alternative lenders that are ready to extend their financing. Learn how to apply for business financing with FINSYNC.

 

How FINSYNC Can Help

 

FINSYNC allows you to run your business on One Platform. You can send and receive payments, process payroll, automate accounting, and manage cash flow. To learn more about how we can help your business start, scale, and succeed, contact us today.

The lending landscape has changed drastically over the past decade. Banks that don’t adjust to the changes sweeping the industry may be in for some real challenges. Traditional bank loans are no longer the only option for small businesses in America. The growth of online lending has given business owners a new avenue to secure financing.

 

The Rise of Online Lending

 

Back in 2015, the SBA reported, “A new generation of online lenders is surfacing with the promise of an efficient, streamlined application process with quick turnaround times and higher approval rates.”

 

The report went on to note that borrowers spend a mere 30 to 60 minutes on online loan applications, which can become funded in a matter of days. At the same time, the traditional loan application process takes an average of 26 hours. It may not be processed for weeks or even months.

 

More recently, a 2018 report on small business lending in the U.S. detailed how a handful of the largest small business lending platforms are filling a financing gap for small business owners.

 

NDP Analytics, an economic research firm based in Washington, D.C., reported that five online lending platforms alone funded $10 billion in online loans from 2015 to 2017. Generating $37.7 billion in gross output. Creating 358,911 jobs and $12.6 billion in U.S. wages.

 

Needless to say, we’re far from business as usual in the banking world when it comes to small business lending.

The Opportunity for Online Data

 

Access to online financial data streamlines both the loan application and approval processes, benefitting both lenders and borrowers alike. However, there are many more benefits to unlock in this newly charted territory.

 

What if access to a business’s financial data could open up a dialogue between lender and borrower in a way that elevated the interaction from a mere transaction to an ongoing relationship?

 

Along with the ease and access that online banking offers, small businesses in America are looking for more out of their lender than a simple “approved” or “rejected” response.

 

Beyond “Yes” or “No”

 

As we all know, a solid relationship is based on an ongoing dialogue rather than a communication dead end. What’s true in life is most certainly the case in banking. For far too long, the conversation between lenders and their clients has ended with, “No, I cannot help you with financing.”

 

What if the conversation — and relationship — could continue, even when a bank opts not to finance the loan? The payoff, of course, is a long-term relationship and all of the future business that comes along with it.

 

Banks and credit unions in FINSYNC’s Business Network have three options every time they receive a loan application:

 

• First, the member bank can assess the financial data provided by FINSYNC. Then, opt to approve the loan for their own balance sheet.

• If the bank determines that the business isn’t quite ready for traditional bank financing, the lender can seamlessly share the application with another member lender. One that’s prepared to approve and fund the loan on behalf of the bank.

• If the bank determines that the business is not ready for financing at the present time, the banker can show them how to get where they need to be. As part of FINSYNC’s cash flow management solution, the bank can communicate milestones and actionable steps that the applicant can take to qualify for financing in the future.

 

FINSYNC Makes it Easy to Evolve

 

FINSYNC makes it simple for banks and credit unions to graduate from the old binary way of banking. Participating in FINSYNC’s lending network helps banks connect with their customers online to strengthen these all-important relationships and ultimately fund more loans.

 

Currently, both traditional and alternative lenders are joining FINSYNC’s partner network at a rate of one new lender per day. This number is rising rapidly as more banks begin to see the growth opportunities that the new lending landscape offers.

 

We’ve made it as easy as possible to get started. FINSYNC uses established data connections to banks, so there’s no need for IT investment or laborious integration. In fact, we’ve gotten some lenders enrolled and up and running in as little as an hour.

 

The future of banking is about relationships backed by the power of online data that can benefit both lenders and customers alike.

 

How FINSYNC Can Help

 

FINSYNC allows you to run your business on One Platform. You can send and receive payments, process payroll, automate accounting, and manage cash flow. To learn more about how we can help your business start, scale, and succeed, contact us today.

FINSYNC is rapidly building a network of banks that use our technology to connect with customers in search of financing online. As a “fintech” company, we are often asked about other technology companies and their potential impact on the banking industry. Should they elect to throw their hat (or weight) into the ring. Most commonly — Amazon.

Uniquely enough, I love the question because it teases out something I am very passionate about. That’s the desire to be in the relationship business (as opposed to transactional). If banks want to build a defensible competitive advantage over Amazon banking, they too will need to move to the mindset of being in the relationship business.

This may sound obvious, but it’s not. I meet with bankers all the time that speak of a desire to innovate, then describe the box their idea needs to fit within and the areas where it cannot overlap. If only I could walk into my next bank board meeting with Clay Christensen, who authored The Innovator’s Dilemma. He has a message in that book that everyone in the banking industry should stop and read, if they haven’t done so already. If I had to summarize it in one sentence: Innovating in fear of staying within a box, or a previous product, process or price — isn’t innovating.  

Willingness to adopt new technology

For a bank to truly be in the relationship business, they, like Amazon, have to innovate and always iterate in an effort to earn the customer’s business and loyalty long term. For most banks, this requires a change in mindset and a willingness to adopt new technology and processes.

All of this can be overwhelming for a bank. I recently attended a bank conference where the bankers were outnumbered almost three to two. That is, there were three vendors for every two bankers at the conference. In this kind of environment, how does a bank decide with whom to innovate? Or, to partner or to build?

Building is very expensive and risky and should only be considered by very large, well-capitalized banks. For the other 4,000-plus banks and 6,000-plus credit unions, I can help make your job easy. Think about your customer first. Look for and then adopt the solutions on the market that are proving to create the most value for your customers while also helping your financial institution to increase revenue, reduce risk and improve the overall relationship you have with your customers. If your customers win, you will win irrespective of who enters the market.

Benefits of using FINSYNC

FINSYNC makes it easy for you to connect with your customers online in order to strengthen these all-important relationships, and ultimately fund more loans. Joining FINSYNC’s Lending Network allows you to offer your customers an online financing option that goes beyond traditional lending. It requires no IT investment or implementation on your end.

When you’re not ready to approve a loan, FINSYNC helps you continue the relationship by presenting the business with actionable steps they can take to secure financing with you in the future. We also help businesses with advanced cash flow analytics and projections. Allowing them to show you exactly where their business is going. It’s a value-add for both you and your customers, and it all begins with your relationship.

Finding a small business loan that suits your specific needs can be a tricky prospect.

 

The best type of financing options for your business depends on several factors, including how long you’ve been in business, what you’re going to use the funds for, if you have collateral, and how high is your credit score.

Learn about five popular options that may be available to your small business, depending on your specific situation.

 

Term Loan

 

When you think of traditional financing, you are likely thinking of a term loan. Issued by a bank, these loans have fixed interest rates and are paid back via monthly or quarterly payments made over a defined period of time.

 

If you’re a well-established business with excellent credit and solid financials, this may be the most favorable loan you can get. Term loans tend to have the lowest interest rates, and you can borrow a large amount of capital.

 

However, they can also be difficult to qualify for, and you can expect an in-depth application process — something to keep in mind if you need cash in a hurry. Term loans also generally require collateral.

 

Business Line of Credit

 

The difference between a term loan and a business line of credit boils down to flexibility. With a line of credit, you use it when you need it (up to a set limit) and only pay interest on what you use. You have the freedom to draw from your line of credit whenever you need to.

 

Lines of credit can provide the security of a cash cushion for your business, which can be especially helpful if your cash flow tends to fluctuate or you frequently face unexpected expenses.

 

A business line of credit may be fixed or revolving. The latter works a bit like a credit card combined with a cash advance. Once you repay what you’ve borrowed, your line of credit resets, and you may borrow up to your limit again. A fixed line of credit doesn’t reset once you’ve used it.

Like term loans, lines of credit can be difficult to qualify for, though you’ll have a good chance if you’re an established business with excellent credit.

 

Equipment Loan

 

Does your business need a new printer? A delivery van? Perhaps you’re starting a food truck? Equipment loans are worth considering, as they can help you purchase both new and used equipment.

 

The beauty of an equipment loan is that the equipment itself serves as collateral. Unlike many other types of loans, it generally makes no difference if you’re a brand-new business. If something happens and you can’t repay the loan, the lender is entitled to the equipment itself.

 

Consider these alternate lenders for a small business loan.

CollectEarly

 

If you are in the business of invoicing customers, you’ve likely encountered some cash flow issues caused by late payments. CollectEarly allows you to borrow money against the amount of money you’re owed, so you can get the cash immediately — without having to wait for your clients to pay.

Borrowing against your unpaid invoices can be as simple as a click, and you get funds fast, which can help you avoid cash flow dips that may make it difficult to pay your vendors or even your employees.

Like equipment loans, CollectEarly is also less difficult for new businesses to qualify for. Is your credit less than stellar? We’ve got good news: The credit of your customers matters more than your own with this type of loan. Learn more ways to qualify your business for financing with bad credit.

 

SBA Loan

 

The Small Business Administration helps businesses that may have difficulty qualifying for a term loan by teaming up with banks to guarantee part of the loan. This win-win situation reduces the risk for banks and allows more businesses to qualify for low-interest-rate loans.

 

While SBA loans are open to new businesses, long repayment terms and low-interest rates mean that they’re highly competitive. There are several types of SBA loans. The most popular is the SBA 7(a) loan, a flexible loan of up to $5 million that small businesses can use for nearly any business purpose.

 

If you need funds for commercial real estate, to renovate your business, or for equipment, consider a SBA CDC / 504 loan. In this program, a bank funds up to 50 percent of the loan, while a nonprofit certified development company (CDC) covers up to 40 percent (you’re responsible for the final 10 percent of project costs). In order to qualify, you’ll need to occupy at least 51 percent of the space you’re funding.

If you want to borrow $50,000 or less, the SBA’s Microloan program may be for you. For this type of loan, the SBA partners with community-based non-profit lenders to offer smaller loans. The average Microloan is for around $13,000 and has terms of up to six years.

 

Streamline Your Efforts

 

Don’t let the variety of loan options out there overwhelm you. Online tools like FINSYNC simplify the loan application process by connecting you with a diverse lending network that offers a variety of loan types — via one simple application. Simply tell us the purpose of the loan and what type of collateral you have (if any), and we’ll do the rest.