Articles answer one question each. The bill list on this page is invented: one store's large bills for a year and the funding type beside each.
A year of large bills at an invented Edgecombe County, NC lighting store, each matched to a funding type
Before any request, an owner can list the year's large bills by month and write beside each one the funding type that fits it. An invented lighting and home decor store expects five such bills this year, $44,775 in all (our arithmetic):
| Month | Bill | Invented amount | Funding type that may fit |
|---|---|---|---|
| February | Two registers and a card terminal | $3,485 | Equipment financing |
| April | Yearly property and liability insurance premium | $4,965 | A line of credit draw |
| June | New lamp line from a lighting supplier | $21,765 | Inventory financing |
| August | Freestanding showroom display tables | $8,350 | A term loan |
| October | Wages for two added sales staff before the new line sells | $6,210 | Working capital |
Only one of the five, the lamp order, is stock, and it can be paid down as the lamps sell. The registers and the display tables last for years and suit a fixed schedule; the premium comes back every year and suits a draw cleared within months; the October wages are a short gap. In this invented year no single funding type fits all five bills.
Moving cash dates before borrowing: three changes an Edgecombe County, NC upholstery maker can test
An invented upholstery maker pricing a foam cutter can try three changes in its own books before it asks for money:
- Bill each finished order the day it ships rather than at the end of the month.
- Ask furniture-store customers for part payment when they place an order.
- Ask the foam and fabric suppliers for 30-day terms in place of payment on delivery.
If the account still runs short after those changes, the cutter itself is an equipment financing question, and the maker's bill list shows a partner which month the new payment joins.
Reading a bill list before a call: three questions for each line
- Does the bill buy something the business keeps for years? A fixed schedule may fit it.
- Is it stock that turns back into cash as it sells? Paydowns can follow the sales.
- Does it come back every year, or cover a gap of a few weeks? A short draw or a short loan may suit it.
The answers, with the month each bill lands, are what a first call works from. A short gap that repeats may suit a line of credit; a single large bill may suit a fixed schedule; a partner then decides on its own terms.
Six articles, each one a Tarboro, NC case worked from the bill up
- A taqueria's four bills: a tortilla machine, a salsa bar, a bulk masa order and what a card-sales advance takes.
- A medical supply store in Tarboro, NC: lift chairs on a line, a repair bench on a term loan and rental wheelchairs on equipment financing.
- Payroll and supplier bills at a fastener wholesaler, sized from the account's low point between the supplier's due date and a customer's check.
- Weekly payments or line paydowns at a station store: one staples order and a frozen beverage machine.
- Insurance and resale value on a pledged chipper, beside an IT support company with nothing to pledge.
- A locksmith's first request, from the key machine quote to an offer with a fee taken at closing.
By Riverview Business Loans · Updated