As financial challenges for small businesses grow more complex, owners face mounting pressure and cash flow strain.
August 19, 2025, Houston, TX — Leading invoice funding company Charter Capital reports that inflation, delayed payments, and tighter lending conditions are weighing on small business finances. Additional insights are shared in “How to Tackle Top Financial Challenges for Small Businesses,” now available at CharCap.com.
The release comes on the heels of the latest U.S. Chamber–MetLife Small Business Index, which notes that more than a quarter of small businesses are still uncomfortable with their cash flow. National Federation of Independent Business (NFIB) data echoes the sentiment, with many businesses reporting rising costs, inflation-related strain, and difficulty securing financing as persistent concerns.
“Small business finances aren’t strained by one issue. They’re being tested from multiple directions,” explains Gregory Brown, Co-founder and Executive Manager at Charter Capital. “When these pressures converge, they create persistent cash flow challenges, which helps explain the number of business owners expressing concern.”
Brown emphasizes that while small businesses may manage through one or two challenges, compounded issues such as inflation, delayed payments, and higher operating costs make financial management significantly more difficult. These overlapping pressures can disrupt projections and increase the risk of shortfalls, especially for businesses without structured financial forecasting in place.
He also stresses the importance of identifying potential cash flow gaps early. With better visibility into upcoming expenses and receivables, businesses can take proactive measures to manage business expenses, tackle challenges like slow-paying customers, and bridge gaps without pressure.
“Funding solutions like factoring can be especially helpful for the one in four small businesses that feel uncertain about cash flow, since it can be arranged ahead of time and used only when needed,” Brown adds. “While many businesses use factoring consistently, it also serves as a safety net when cash flow is disrupted by late payments, unexpected costs, or other financial pressures.”
Those interested in learning more about invoice factoring or who would like to request a complimentary quote may do so by calling 1-877-960-1818 or visiting charcap.com.
About Charter Capital
Headquartered in Houston, Texas, Charter Capital has been a leading provider of flexible funding solutions for the B2B sector for more than 20 years. Competitive rates, a fast approval process, and same-day funding help businesses across various industries secure the working capital necessary to manage daily needs and grow. To learn more, visit charcap.com or call 1-877-960-1818.
Hiring a CPA may not be as easy as you think. Over 300,000 accountants and auditors have left their jobs in the past couple of years, SHRM reports. This mass exodus from the field, paired with increasing demand, means it can be challenging to find a qualified professional to begin with. In addition, each CPA brings something different to the table. It’s essential to find the right professional for your needs. On this page, we’ll walk you through the basics of what a CPA can do for your business, why you might need one, and how to ensure the one you select can be truly instrumental in your business growth.
What’s a CPA?
Technically, just about anyone can be an accountant or work as an accounting professional. Although most have degrees in accounting, there are few requirements to provide accounting services.
On the other hand, CPA is short for Certified Public Accountant. This designation is awarded to someone who has gone the extra mile and become licensed. Each state has different rules, though additional schooling and study in areas like auditing, taxation, and cost accounting, as well as passing a CPA exam, are typical requirements. CPAs are usually expected to engage in continuing education programs and meet additional requirements to maintain their licenses, too.
CPA vs. Bookkeeper
Sometimes, “bookkeeper” and “CPA” are used interchangeably, but they’re different types of professionals.
Bookkeepers generally manage the day-to-day financial transactions of a business. This includes things like recording transactions, posting debits and credits, generating invoices, managing payroll, and maintaining and balancing ledgers and accounts.
CPAs, on the other hand, can handle more complex tasks such as tax planning and filing, financial forecasting, and providing strategic business advice. CPAs can also represent a business in IRS dealings, which is typically beyond the scope of what a bookkeeper can do.
Signs Your Business Should Consider Hiring a CPA
You may not need a CPA while your business is small. However, as it grows and financial matters become more complex, hiring a CPA becomes vital. Below, we’ll cover a few signs your business is at this stage.
You’re dealing with complex tax situations.
Your business is expanding.
You have auditing needs.
You require assistance with financial planning and analysis.
You’re dealing with complex financial transactions, such as mergers and acquisitions.
You have concerns about regulatory compliance.
You want representation during an IRS audit.
You need to start delegating tasks so you can focus on business operations more.
The Benefits of Hiring a CPA for Your Small Business
For a small business owner, hiring a CPA brings advantages that extend far beyond routine tax filing. A CPA’s in-depth knowledge of tax laws and regulations can help your business remain compliant while identifying legitimate deductions and tax benefits you may otherwise overlook. The cost of hiring a CPA is often offset by the long-term financial savings and strategic insight they offer.
Unlike basic tax software or a generic tax preparer, a CPA brings a broader perspective that supports year-round financial planning, not just seasonal tax return preparation. Their role in bookkeeping, understanding your business structure, and interpreting complex financial records can help reduce risk and improve decision-making.
If your business has multiple income streams, handles personal taxes alongside business tax, or operates in a regulated industry, you may need a certified public accountant to stay ahead of changing tax code requirements. The benefits of hiring a CPA include professional guidance, improved tax compliance, and peace of mind — all crucial as you’re growing your business or managing its day-to-day demands.
8 Essential Considerations When Hiring a CPA
Now that we’ve covered the background, let’s dig into what to look for when hiring a CPA.
1. Qualifications and Certifications
The first step in vetting a CPA is to review their qualifications and certifications.
CPA Licensure
Confirm the professional you’re considering working with has a CPA license in the state in which your business operates. This proves they’ve passed the CPA test, understand complex accounting principles, and are familiar with ethical standards. Many states offer online portals that make it easy to verify these credentials.
Education
While CPAs are all required to take accounting-specific classes, degrees may differ. Moreover, a bachelor’s degree is usually the minimum requirement, and many go beyond this to secure a master’s degree in accounting, business administration, or taxation. If you’re dealing with a specific concern, working with someone with additional expertise in that area may be advantageous.
Specializations and Certifications
Beyond the CPA licensure, many accountants pursue additional certifications that denote expertise in specific areas.
Certified Management Accountant (CMA) for expertise in financial management and strategy.
Certified Information Systems Auditor (CISA) for those focusing on information systems audits and controls.
Certified Financial Planner (CFP) for expertise in personal financial planning.
Accredited in Business Valuation (AVB), Certified in Financial Forensics (CFF), or Chartered Global Management Accountant (CGMA) for specialized skills in valuation, forensics, or global business finance.
Professional Memberships
Memberships in professional organizations such as the American Institute of CPAs (AICPA), or state CPA societies can indicate the individual is committed to the profession and adherence to its ethical standards.
2. Experience and Expertise
Experience in your specific industry is invaluable. Different industries have unique accounting standards, tax implications, and financial challenges. For example, a CPA with a background in manufacturing will be familiar with cost accounting and inventory management practices specific to the industry. At the same time, one with expertise in technology startups might have more experience with venture capital financing and revenue recognition for software sales.
3. Services Offered
A good CPA can be a strong partner for your business for years to come. Because of this, you’ll want to think about your short-term and long-term objectives and ensure the services offered by any CPA you’re considering align with them. We’ll go over a few examples below.
Comprehensive Tax Services
Beyond basic tax preparation, a CPA offering complex tax services such as planning, consulting, and IRS representation can be a critical asset. This is especially vital if you’re dealing with a complex tax situation, trying to minimize liabilities or need guidance on tax-efficient strategies.
Auditing and Assurance Services
If your business requires auditing services, whether for internal purposes, compliance, or external investor relations, selecting a CPA with expertise in these areas is crucial. Assurance services add credibility to your business’s financial statements, which is essential for stakeholder confidence.
Accounting and Financial Reporting
A CPA that offers accounting and financial reporting services can help you ensure accuracy in your financial statements, comply with accounting standards, and provide insights for decision-making through financial analysis.
Business Advisory and Consulting
CPAs providing business advisory services can assist in areas such as business planning, financial forecasting, risk management, and even succession planning. This expertise is invaluable if your business is trying to grow, pivot, or navigate a transition.
Specialized Services
Depending on your specific challenges and goals, you may prefer hiring a CPA with specialized services, such as international taxation or forensic accounting, who can offer targeted solutions and expertise.
Integration with Business Operations
It is crucial to consider how well the CPA’s services can be integrated into the existing business operations. A CPA who is adaptable and capable of working with your current systems and processes can provide seamless support and more effective collaboration.
4. Soft Skills
Communication skills, problem-solving abilities, and attention to detail are essential. The CPA will be working closely with your team, analyzing financial data, and providing strategic financial advice. Therefore, they must be able to communicate complex information clearly and work effectively under pressure.
5. Reputation and References
Ask for references from previous clients, especially those in similar industries or those with similar needs to your own. This can provide insights into the CPA’s work ethic, reliability, and quality of their service.
It’s essential to have a mutual understanding of when and how the CPA will be available under different circumstances. For instance, you may be able to schedule regular financial reviews without issue, but what happens if you receive a large, unexpected order that requires quick financial assessment and decision-making? Or, what if your business experiences an emergency? Will you be able to reach them easily and in a manner that works for you both? What about connecting during tax times or other critical financial periods?
Be sure you’re on the same page with your CPA regarding how situations like these will be handled and ask if they offer any guarantees about the level of service you’ll receive.
8. Fees and Pricing Structure
Understanding the fees and pricing structure of a CPA’s services is crucial for transparency and aligning financial planning with the cost of services. A few areas to consider in this regard are outlined below.
Hourly Rates vs. Fixed Fees
CPAs may charge by the hour or offer fixed-fee arrangements for specific services. Hourly rates are typical for consulting or advisory services where the scope of work might vary. Fixed fees are often applied to well-defined tasks such as annual tax preparation.
Retainer Basis
Some CPAs offer their services on a retainer basis. Where the business pays a regular, predetermined fee for ongoing services. This arrangement can be beneficial if your business requires continuous access to CPA services, as it makes costs more predictable and ensures the CPA will be available.
Value-Based Pricing
In some cases, CPAs may offer value-based pricing for services that provide significant value or savings to the business, such as tax planning strategies that significantly reduce your tax liability. In these cases, the fee is based on the value derived rather than the time spent.
Additional Fees
Be aware of any additional fees that may apply, such as charges for rush services, extra for complex transactions, or fees for using specific technologies or software. Understanding all potential fees upfront can help avoid unexpected costs.
Comparison and Negotiation
It’s worthwhile to compare fee structures and services offered by different CPAs. Discuss the fees with the CPA, especially if you need clarification or want to negotiate terms that fit your company’s budget and needs better.
While hiring a CPA can help you understand your finances better and leverage capital in a way that aligns with your business objectives, this is only one component of a cohesive financial management strategy. All businesses need working capital from time to time, and demand increases during periods of high growth. That’s where invoice factoring comes in. It accelerates payment on your B2B invoices, so you get the capital you need right away without taking on debt. To learn more or get started, request a complimentary rate quote.
“You’re on mute.” This catchphrase, repeated so often over the past few years that it’s now printed on mugs and plaques, is a sign of our times. We’re in the era of virtual communication. But which is best: Zoom vs. in-person meetings? Each likely has a place in most organizations. Below, we’ll walk you through the advantages and disadvantages of both, plus provide some tips that can help you sort out which is best on a case-by-case basis.
Advantages and Disadvantages of In-Person Meetings
While in-person meetings may be the traditional way to go, there are advantages and disadvantages to bringing everyone together in a single space.
Advantages of Meeting Face-to-Face
Aside from not having to say, “You’re on mute,” in-person meetings have many advantages that can enhance the effectiveness of business communication and team dynamics.
Nonverbal Communication
In-person interactions allow for a richer exchange of nonverbal cues that can change how communication is interpreted. Studies seem to support this. Mehrabian’s famous research, for instance, finds that 55 percent of communication is nonverbal, 38 percent is vocal, and seven percent is words only, the University of Texas notes.
Engagement and Focus
People tend to multitask more when they’re not in plain view. Being in a shared space tends to minimize distractions and increase focus during discussions, which is essential for brainstorming and problem-solving.
Relationship Building
In-person meetings offer opportunities for more spontaneous interactions and social bonding, which are essential for building trust and creating a more unified team, which also increases team collaboration.
This can be especially important in diverse teams, as being in a shared space allows participants to read the room better and adjust communication styles to ensure everyone is on the same page.
Immediate Feedback
In-person discussions tend to be more organic. There’s no need to unmute or verbally request feedback. The speaker can simply look around the room to bring people into the discussion or establish a consensus. This can also help speed up discussions and reduce the amount of time spent in meetings.
Challenges with In-Person Meetings
While in-person meetings have several benefits, they also come with challenges and drawbacks that businesses, especially small ones, need to consider.
Cost and Logistics
In-person meetings often involve significant costs and planning, especially when participants are in different locations. Travel expenses, accommodation, venue selection, and other logistical costs can quickly add up. For small businesses operating with limited budgets, these expenses can make meeting in person impossible.
Time Constraints
Organizing and attending in-person meetings can take a considerable amount of time. Because this takes employees away from their primary job functions, it can decrease productivity, too.
Accessibility Issues
Health concerns, physical disability, and other issues may prevent some team members from attending. This lack of inclusivity can alienate valuable team members and hurt morale.
Environmental Impact
Businesses with green initiatives may be concerned about the environmental impact of in-person meetings, particularly if air travel is required to attend.
Limited Scalability
There’s a limit to how many people can effectively engage during in-person meetings. This can limit the scope of discussions and the diversity of perspectives offered.
Advantages and Disadvantages of Virtual Meetings via Zoom
Now that we’ve covered in-person meetings let’s take a deeper look at the advantages and disadvantages of hosting virtual meetings via platforms like Zoom.
Advantages of Zoom Meetings
Remote business meetings via platforms like Zoom offer several key advantages that align well with the needs of modern businesses.
Cost-Effectiveness
Virtual meetings eliminate the need for travel, accommodation, and physical venue costs, which can make them much more cost-effective.
Geographic Flexibility
Zoom and similar remote communication platforms enable participants to join from any location with internet access. This flexibility allows for the inclusion of remote employees, international partners, and clients for greater collaboration and networking.
Convenience and Time Savings
Participants can join meetings from their desks, at home, or on the go, saving time and allowing teams to focus on their core duties more, boosting productivity.
Scalability
Virtual meetings can accommodate a large number of participants at once. This can make it simpler to host company-wide conferences or training sessions as needed and make it easier to include additional participants with minimal effort or notice.
Recording
Digital communication is easily recorded, often with integrated tools, enabling participants to review discussions as needed, share the session with people who could not attend, and maintain records for compliance and training needs.
Integration with Other Digital Tools
Virtual meeting platforms like Zoom often integrate seamlessly with other tools such as calendars, email, and project management software, which can streamline scheduling, follow-up, and the management of action items.
Innovative Engagement Features
Features such as breakout rooms, polls, and screen sharing can enhance engagement and interaction, aiding brainstorming and decision-making.
Disadvantages of Zoom Meetings
Virtual meetings have many benefits, but they also come with certain disadvantages that businesses must address.
Technical Issues
Connection issues, software glitches, and hardware malfunctions can create delays, disrupt meetings, and cause frustration.
Reduced Human Interaction
Participants may feel a decreased sense of connection, impacting team dynamics and working relationships.
Engagement Challenges
Because people are prone to multitasking during virtual meetings, organizers must be vigilant about finding ways to keep people engaged in the session.
Limited Nonverbal Communication
Although video conferencing allows for some visual clues, the subtleties of body language and other forms of nonverbal communication are often lost.
Zoom Fatigue
The rise of virtual meeting platforms has led to the coining of a new term: “Zoom Fatigue.” It’s associated with symptoms of burnout, such as difficulty concentrating and physical symptoms like muscle tension and pain, Healthline reports. Experts say this is because people have to work harder at virtual communication than in-person communication due to the lack of body language. Plus, the level of eye contact, among other things, is unnatural.
Security and Privacy Concerns
Without the right security protections in place, virtual meetings are vulnerable to unauthorized access and cyberattacks. Plus, recordings can potentially be shared with people they’re not intended for.
Cultural and Language Barriers
Differences in language, culture, and communication styles can be more pronounced and harder to navigate in a virtual environment. These barriers can lead to misunderstandings and misinterpretations, which may affect how the team works together and project outcomes.
Zoom vs. In-Person Meeting: Deciding What’s Right for Your Business
When deciding between hosting meetings in-person or virtually, it’s essential to make an informed choice that fits your objectives, resources, and the needs of the participants.
Meeting Objective
In-person meetings may be more effective for complex problem-solving, sensitive negotiations, or when teambuilding is a primary concern. Virtual meetings are generally best for regular check-ins, progress updates, or when the agenda is straightforward or informational.
Participant Locations
If attendees are spread across different time zones or regions, a virtual meeting can save time and keep costs lower. However, if attendees are local, either option may suffice.
Costs
Between travel, accommodation, and renting a venue, in-person meetings may be cost-prohibitive. Virtual options may be a more cost-effective alternative.
Time Sensitivity and Availability
In situations where decisions need to be made quickly or when coordinating schedules is challenging, virtual meetings offer flexibility and speed.
Technological Readiness
If attendees are not equipped with the right technology or are not comfortable using it, training or in-person meetings are essential.
Meeting Size and Participation
Meetings of large groups are often more manageable when held virtually, especially if minimal interaction is required.
Confidentiality and Security
If the meeting involves sharing sensitive information, a careful security analysis should be performed before going virtual. If the platform and protocols are not secure, an in-person meeting should be arranged.
Engagement and Interaction Needs
Consider the level of interaction and engagement expected. If the meeting benefits from high engagement, brainstorming, and teambuilding activities, in-person may be best. However, it’s important to remember that virtual platforms often include features like polls and breakout rooms that can help in this respect, which may be sufficient for most needs.
Past Experiences
Reflect on past meetings and their outcomes. Consider participant feedback about their preferences and the effectiveness of past Zoom vs. in-person meetings. This can provide valuable insights for future planning.
Environmental Considerations
Lastly, businesses prioritizing sustainability may want to leverage virtual meetings more, as they can reduce the carbon footprint associated with travel.
Equip Your Team for Success with Invoice Factoring
From equipping your team with the right technology to procuring space and setting up travel, there will always be expenses, regardless of whether you host meetings via Zoom or in-person. However, smaller businesses often struggle to address these expenses due to cash flow constraints. That’s where invoice factoring comes in. It provides you with instant payment on your B2B invoices, so you can invest in the things that matter most without putting your business in debt. To learn more or get started, request a complimentary factoring rate quote.
More small business owners are turning to invoice factoring to cope with economic challenges, a new report shows.
January 30, 2024, Houston, Texas—Leading invoice funding company Charter Capital says small business factoring is a key strategy among small business owners coping with some of the most significant economic challenges today. Additional coverage of the topic can be found in “Our 7 Favorite Things About Factoring,” now live on charcap.com.
The report draws on JP Morgan research, which indicates one in four small businesses has just a 13-day cash reserve. With such a small cushion, it doesn’t take much more than a single late payment from a client or unexpected expense to upend plans for even the most meticulous budgeter.
“Invoice factoring pays out quicker than most funding options,” explains Joel Rosenthal, Co-founder and Executive Manager at Charter Capital. “This makes it ideal for businesses that need to cover critical expenses and don’t have time to wait.”
He says invoice factoring is unique because it quickly turns unpaid B2B invoices into cash. While this usually means cash reaches the business’s account within a couple of business days, Rosenthal says interest in Charter Capital’s same-day funding options has surged due to the current economic climate.
He notes that the ability to obtain funding without taking on debt also appeals to small business owners. This aligns with data from the latest Small Business Credit Survey, which indicates that one in three small businesses is having trouble making payments on debt.
“The high interest rates seen today are making more small businesses debt-averse,” Rosenthal continues. “They’re funneling everything they have into paying down debts, especially those with variable APRs that have become much more challenging to pay off. Being able to obtain funding without adding to that burden is a huge relief.”
Rosenthal adds that factoring is also flexible, which means businesses can tap into funding as needed. This enables businesses to fill working capital gaps as they emerge and accept orders they might have otherwise turned down due to cash outlay requirements. Because of this, factoring is quickly becoming part of many business growth strategies, too.
Those interested in learning more about invoice factoring or who would like to request a complimentary quote may do so by calling 1-855-751-7937 or visiting charcap.com.
About Charter Capital
Headquartered in Houston, Texas, Charter Capital has been a leading provider of flexible funding solutions for the B2B sector for more than 20 years. Competitive rates, a fast approval process, and same-day funding help businesses across various industries secure the working capital necessary to manage daily needs and grow. To learn more, visit charcap.com or call 1-855-751-7937.
Resilience planning improves long-term outcomes by filling gaps left by risk management and continuity planning, yet is often overlooked by small businesses.
January 4, 2024, Houston, Texas—Leading invoice funding company Charter Capital says millions of small businesses across the country may be exposing themselves to unnecessary risks by failing to perform resilience planning and audits. Additional coverage of the topic can be found in “4 Key Areas Your Resilient Business Model Must Address,” now live on charcap.com.
While many businesses are actively engaged in risk management and continuity planning, especially in light of recent economic shifts, Gregory Brown, Co-founder and Executive Manager at Charter Capital, says these activities can still leave gaps. Resilience planning fills them to ensure the business remains agile and can give companies a significant competitive advantage.
A resilient business model includes risk management strategies, Brown explains. However, it delves deeper than mitigation and empowers businesses to find the upside in challenging situations. It also incorporates aspects of business continuity planning but is more concerned with how the business will operate in multiple potential futures rather than restoring normal operations after an incident.
Those hoping to develop a more resilient business model should address critical areas such as revenue stability, operational strength, organizational preparedness, and digital transformation. Regular audits are also crucial, as they allow the business to identify and fortify areas that might otherwise create issues or slow business growth.
“Business resilience may seem intangible, but it can and should be measured,” Brown contends. “Financial stability is a strong ongoing indicator, while recovery time after an incident can provide insights, too.”
He says that businesses with a small number of revenue streams are more vulnerable to shifts. However, simple strategies, such as developing subscription-based options or adding new products and services, help ensure the business remains strong even if something disrupts the primary revenue stream.
“Being prepared with a source of funding like invoice factoring is essential, too,” Brown adds. “Because you can leverage it on demand, it’s ideal for bridging cash flow gaps, navigating slumps, and addressing emergencies.”
Those interested in learning more about invoice factoring or who would like to request a complimentary quote may do so by calling 1-877-960-1818 or visiting charcap.com.
About Charter Capital
Headquartered in Houston, Texas, Charter Capital has been a leading provider of flexible funding solutions for the B2B sector for more than 20 years. Competitive rates, a fast approval process, and same-day funding help businesses across various industries secure the working capital necessary to manage daily needs and grow. To learn more, visit charcap.com or call 1-877-960-1818.
Businesses that master operations, customer relationships, and finance are more likely to succeed and thrive, research shows.
November 30, 2023, Houston, Texas—Leading invoice funding company Charter Capital says small businesses should focus on three key areas going into the new year: dependable operations, positive customer relations, and mindful financial management. Additional coverage of the topic can be found in “3 Keys to Succeeding in Business: Operations, Relations & Finance,” which is now live on charcap.com.
The report contends that businesses should go into the new year with a plan to create more scalable and dependable operations, which will set a strong foundation for growth. Strategies such as implementing helpful technology, developing a business continuity plan, and leveraging automation may all play a role. The company draws on McKinsey research, which indicates that at least 30 percent of activities in 60 percent of jobs can be automated, and notes that businesses must keep a critical eye out for opportunities to automate to empower teams to work more efficiently or produce more without becoming overburdened as their companies grow.
Because happy and loyal customers stay with a company longer, spend more, and refer more clients, improving customer relations is the second component of the trifecta. Brands are encouraged to develop loyalty programs, proactively solicit customer feedback, and improve customer care response times to advance in this area.
“Naturally, mindful financial management is a key component to business success, too,” explains Joel Rosenthal, Co-founder and Executive Manager at Charter Capital. “While most business leaders recognize this, many still make decisions reactively rather than proactively.”
Accurate cash flow predictions lay the groundwork for proactive decision-making, Rosenthal notes. This allows businesses to identify potential issues and budget accordingly. Leveraging best practices to boost cash flow, such as shortening customer payment windows, invoicing immediately after goods or services are delivered, and automating payment reminders, will help.
“Invoice factoring can also bridge cash flow gaps and help businesses ramp up as needed,” Rosenthal continues. “It’s a flexible funding solution that can be set up in advance and leveraged as needed.”
Those interested in learning more about invoice factoring or who would like to request a complimentary quote may do so by calling 1-877-960-1818 or visiting charcap.com.
About Charter Capital
Headquartered in Houston, Texas, Charter Capital has been a leading provider of flexible funding solutions for the B2B sector for more than 20 years. Competitive rates, a fast approval process, and same-day funding help businesses across various industries secure the working capital necessary to manage daily needs and grow. To learn more, visit charcap.com or call 1-877-960-1818.
With half of all small businesses failing to secure full funding through a single loan, many turn to the dangerous practice of loan stacking.
October 24, 2023, Houston, Texas—Leading invoice funding company Charter Capital says small businesses that fail to secure full funding through a single loan are turning to loan stacking and putting their companies in precarious positions. Additional coverage of the topic can be found in “Why Loan Stacking is Business Suicide & What to Do Instead,” which is now live on charcap.com.
The new report draws on research from the latest Small Business Credit Survey, concluding that around half of all small businesses applying for funding don’t receive the full amount needed. While loan stacking is not illegal in most situations, it dramatically increases financial strain on the business and puts it at risk. Business loan marketplaces are increasing the practice because business owners can get approved for and accept multiple loans at once, notes Gregory Brown, Co-founder and Executive Manager at Charter Capital.
“When a lender doesn’t fund a loan in full, it means it thinks the business may not be able to manage the debt,” Brown explains. “That’s a warning sign that businesses should heed.”
Brown says that when a business is approved for a loan but doesn’t receive the requested amount, it’s often due to a lack of cash flow or existing debts. It means the business may be unable to repay the loan if it faces financial hardship. When the business secures a subsequent loan from another provider, it increases the risk of default, potentially violating the terms of the original loan agreement and often paying significantly more for the subsequent loans.
“Businesses often get trapped in a negative cycle of debt through loan stacking,” Brown continues. “They can only make minimum payments or pay interest, which makes it impossible to get out of debt and exponentially increases the cost to borrow.”
Brown says that businesses can avoid this situation or address it by asking their current lender for help, exploring refinancing options, and through invoice factoring. Whereas the first two solutions involve creating or maintaining debt, factoring provides debt-free funding by accelerating payment on B2B invoices.
Those interested in learning more about invoice factoring or who would like to request a complimentary quote may do so by calling 1-877-960-1818 or visiting charcap.com.
About Charter Capital
Headquartered in Houston, Texas, Charter Capital has been a leading provider of flexible funding solutions for the B2B sector for more than 20 years. Competitive rates, a fast approval process, and same-day funding help businesses across various industries secure the working capital necessary to manage daily needs and grow. To learn more, visit charcap.com or call 1-877-960-1818.
As concerns about inflation persist, small businesses are shoring up their financial planning with better budgeting and forecasting practices.
September 26, 2023, Houston, Texas—Leading invoice funding company Charter Capital says the pressure small businesses face due to the economy and inflation is causing many to adopt healthier fiscal habits. Additional coverage of the topic can be found in “Financial Forecasting: Why it’s Important for Your Business,” now live on charcap.com.
The report comes on the heels of the latest Small Business Index from the U.S. Chamber of Commerce, which places the Index score at 69.2, the highest seen since the first quarter of 2021. In all, 71 percent of small businesses expect next year’s revenue to increase, and 66 percent say their business is in good health, a ten-point jump from the previous quarter. Still, 52 percent say inflation costs are their most significant challenge, a concern that has dominated throughout the year.
“Challenging ongoing economic conditions are shifting how small businesses look at money,” explains Joel Rosenthal, Co-founder and Executive Manager at Charter Capital. “There’s renewed interest in better budgeting and forecasting practices, which make it easier for businesses to thrive despite tighter margins caused by inflation.”
Rosenthal’s sentiments are echoed by a Clutch study, which shows 54 percent of small businesses have formally documented budgets, up from 39 percent just three years ago. Budgets, Rosenthal explains, guide the direction of a business, so they’re an imperative first step. Forecasting, on the other hand, allows the business to see if it’s on track for meeting its goals.
“We can tell businesses are leveraging forecasting techniques because they’re spotting potential cash flow shortfalls in advance,” Rosenthal explains. “They’re lining up funding sources like invoice factoring in advance as a precautionary measure or to prepare for growth rather than urgent issues such as making payroll.”
While Rosenthal notes that Charter Capital helps small businesses on both ends of the spectrum, he adds that businesses that leverage techniques like forecasting tend to feel more optimistic and growth-minded than their counterparts because it gives them more control over the outcome, even if they can’t change the status of the economy.
Those interested in learning more about invoice factoring or requesting a complimentary quote may do so by calling 1-877-960-1818 or visiting charcap.com.
About Charter Capital
Headquartered in Houston, Texas, Charter Capital has been a leading provider of flexible funding solutions for the B2B sector for more than 20 years. Competitive rates, a fast approval process, and same-day funding help businesses across various industries secure the working capital necessary to manage daily needs and grow. To learn more, visit charcap.com or call 1-877-960-1818.
Small business debt continues to exceed pre-pandemic levels as business owners fight to keep up with payments and explore relief options.
The Growing Struggle: Small Businesses Grappling with Debt
June 27, 2023, Houston, Texas—Leading invoice funding company Charter Capital says that the aftermath of the coronavirus pandemic has left many small business owners struggling under the weight of massive debt. The burden of debt funding and business loans has grown to be a serious barrier as they work to recover from the economic slump. The financial health of these businesses has been under tremendous pressure as a result of the burden of monthly payments and the unpredictability of cash flow. Additional coverage of the topic can be found in “Good Debt vs. Bad Debt for Small Businesses: What’s the Difference?”.
For small business owners, access to capital is still a major challenge. Getting a business loan might be difficult due to the tightening standards of traditional lending institutions, especially for those who are already saddled with corporate debt. Many business owners have turned to using short-term loans or business credit cards, which frequently puts them in a loop of increasing debt.
Small Business Debt Statistics
The release comes on the heels of a Federal Reserve report, which indicates total debt of nonfinancial businesses grew at an annual rate of more than six percent from 2017 to 2021. The latest Small Business Credit Survey echoes the sentiments, noting that the share of small businesses with debts totaling more than $100,000 presently sits at 40 percent, up from 32 percent in 2018. Amid these financial issues, approximately two million small businesses are struggling to make debt payments, finding it to be a major financial challenge. Many business owners are looking at ways to properly manage their debt while they seek debt relief.
Small Businesses’ Evolving View on Debt
“The way small-business owners view debt is changing,” explains Gregory Brown, Co-founder and Executive Manager at Charter Capital. “Between existing debts and concerns about the economy, many are doing everything they can to get their debts paid off or avoid taking on debt to begin with.” Before the covid-19 pandemic, taking on debt might have been a common strategy for expansion or investment. However, the uncertainties brought on by the pandemic have prompted a paradigm shift in how entrepreneurs approach their business finances.
While some debts, such as mortgages and those accrued to grow a business or procure an asset can be helpful while building credit, others, such as credit cards and short-term loans, often bury businesses in fees and can be difficult to pay off.
A Debt-Free Funding Alternative: Invoice Factoring
Brown gives a nod to the Small Business Credit Survey, which indicates more than 681,000 small businesses applied for funding in the past year with the hopes of refinancing or paying down their debt. He says that Charter Capital is seeing a similar trend in relation to applications for invoice factoring, a funding solution that provides businesses with upfront cash for their unpaid B2B receivables. Because the client responsible for the invoice is the one paying the balance, the business itself doesn’t accrue debt.
“Because it’s debt-free funding, it’s a favorite for those trying to avoid taking on debt as well as those trying to get out from under their existing debts,” Brown says. “Plus, most businesses qualify, and it works across a variety of industries, so we’ve been able to help a lot of small businesses strengthen their financial standing.”
About Charter Capital
Headquartered in Houston, Texas, Charter Capital has been a leading provider of business funding solutions for the B2B sector for more than 20 years.
As a reputable debt relief company, Charter Capital is aware of the various financial difficulties that small businesses confront, particularly in the wake of the coronavirus pandemic.
Committed to offering debt management plans and debt-free financing alternatives, Charter Capital takes a customer-centric approach to help businesses across various industries secure the working capital necessary to manage daily needs and achieve sustained growth.
Their competitive rates, fast approval process, and same-day funding set them apart as a reliable partner in navigating financial hardships. With a wealth of experience and a deep understanding of the complexities of business finances, Charter Capital continues to empower small businesses to overcome debt hurdles and unlock their full potential.
To learn more about Charter Capital’s debt management plans and the benefits of invoice factoring, visit charcap.com or call 1-877-960-1818. Take the first step toward a brighter financial future with Charter Capital’s trusted support and expertise.
More small businesses are looking to alternative funding sources as banks limit funding in preparation for a recession.
HOUSTON, TEXAS, May 23, 2023 – Leading invoice funding company Charter Capital says invoice factoring demand is rising as banks tighten lending requirements. Additional coverage of the topic can be found in “When to Consider an Invoice Factoring Service Instead of a Bank,” which is now live on charcap.com.
Small businesses often have a difficult time qualifying for traditional funding. Harvard researchers say this because banks typically have the same overhead administering a small loan as they do for a larger loan, and larger loans deliver greater profit. Even strong potential borrowers may be turned away in the best of times.
Rising interest rates and a slowing economy further slowed lending as banks began to focus even more on quality and reduced risk over quantity, Reuters reports. In the wake of the recent Silicon Valley Bank and Signature Bank collapses, industry specialists now say a credit crunch is in full swing. Financial institutions are mindfully reducing lending in an effort to keep more cash on hand as a safeguard in the event of bank runs.
“Small businesses are impacted by the credit crunch more than others because they were already dealing with limited access to capital,” explains Joel Rosenthal, Co-founder and Executive Manager at Charter Capital. “Even those that would have qualified for traditional funding a year ago may not qualify today.”
Rosenthal says that the credit crunch is creating more interest in alternative funding options like invoice factoring, which has an easier qualification process and typically works much faster. For instance, a business can get approved in days rather than weeks or months. Payment can be made to the business on the same day an invoice is submitted too.
“Because factoring is a debt-free funding solution, it’s also appealing for businesses that are trying to minimize their debt ratio or avoid taking on more payments,” Rosenthal adds. “Businesses are leveraging factoring to shore up their own finances and prepare for banking issues caused by the uncertain economy too.”
Those interested in learning more about invoice factoring or requesting a complimentary quote may do so by calling 1-877-960-1818 or visiting charcap.com.
The Financial Crisis and Its Impact on Small Businesses
The financial crisis of 2023 has brought significant challenges to the United States economy, affecting various sectors, especially small businesses. As banks tighten lending requirements in preparation for the recession, small businesses are seeking alternative funding sources to sustain their operations.
Understanding the Credit Crunch and Inflation Rates
The current credit crunch has been triggered by a massive shift in the financial position of commercial banks. Rising interest rates and inflationary pressures have put downward pressure on lending, leading banks to prioritize reduced risk and high-quality borrowers over quantity.
Invoice Factoring – A Major Contributor to Business Investment
In this challenging economic climate, invoice factoring remains a major financial instrument for businesses. By converting accounts receivables into immediate cash, invoice factoring helps businesses manage debt costs and maintain their financial positions effectively.
The Role of Federal Funds Rate and Exchange Rates
The fluctuations in the federal funds rate, exchange rates, and average rate have also impacted small businesses’ access to capital. As the rate increases, borrowing becomes costlier, putting additional pressure on companies already dealing with mandatory spending and primary deficits.
The Benefits of Invoice Factoring for Business Growth
Amid the economic uncertainty, invoice factoring offers numerous advantages to businesses. Its quick approval process and freedom from debt make it an attractive option for companies looking to secure funds for business investment and navigate the financial deficit.
About Charter Capital
The ongoing financial crisis and the consequent credit crunch are increasing the rates at which small businesses seek alternative funding solutions like invoice factoring. Headquartered in Houston, Texas, Charter Capital, with over 20 years of experience, continues to provide flexible funding options, including financial instruments and financial products, to businesses across various industries. Competitive rates, a fast approval process, and same-day funding help businesses across various industries secure the working capital necessary to manage daily needs and grow. To learn more about how invoice factoring can benefit your business and to explore different annual rate options, visit charcap.com or call 1-855-602-0841.
