Keeping your business in ‘growth mode’, managing cash flow and working on expanding operations is always a challenge, says Kobi Ben Meir, marketing director of Yalber and Got Capital.
Ahead of The Drum Marketing Awards USA 2019, The Drum speaks to Meir on small business finance and the top things to consider before seeking financing, how to increase your chances of obtaining beneficial small business loans and how to make it work in modern society.
Your mission is to provide small businesses access to fast, unsecured working capital. Tell us about your business model?
Yalber’s mission is to provide small businesses with a financial peace of mind. Business owners across the nation deserve access to a source of funding that respect and celebrate their hard work and commitment. We believe that your success is our success. Our investment is designed to support, and increase healthy businesses’ revenue. By recognizing the need, the goal is to provide small business owners with accessibility to funds, allowing them to improve not only their own business, but also their communities. We believe that long-term, personal relationship is a key factor in any business’ success. Our wide spread team in the US and across the UK and Ireland allows us to help many small business owners achieve their goals. That is why we created the Royalty Investment product that requires no personal guarantee, no collateral and is based solely on the business performance in the three months prior to the application. It is truly a revolutionary way to fund your business.
Let’s talk about the rise of independent agencies and therefore small businesses in our industry. It is not an easy job to be a small business owner, how do you make it work in today’s economy?
Small business owners really have their work cut out for them. The task of keeping the business in a growth mode, managing cash flow and working on expanding the operation is always a struggle. Most small business owners find it hard to create and maintain a stable development strategy mostly due to cash flow and credit issues. The banks are reluctant to provide small businesses with the funding they need and that creates a dangerous cycle of personal credit going toward the small business and putting the owner at unnecessary risk . The best way to make it work as a small business owner today is to plan ahead, create a strong strategy and plan your financials wisely.
What are the top things to consider before seeking small business financing?
A small business leader should account for the amount and length of the financing offer needed. To allow a better cash flow and turnaround on credit lines for the business, it is usually best to acquire a royalty based investment deal that you can afford. Those factors can help you when you need additional funding before the first investment is paid off. Another aspect to consider is how responsive you need your financing contact to be. With a royalty based investment, you can get an actual person as your main point of contact, compared to larger companies and banks, with which you will most likely work with the general customer service department.
Small business loans are available from many different lenders with a myriad of choices tailored to the financial situation of your business. What would your advice be to increase their chances of obtaining a beneficial small business loan?
Know what you need, not what you want. Analyze your business needs and make sure you have the right revenue stream and cash flow balance to provide to the respective lender. Unlike Yalber or Got Capital, most lenders will also check your personal financial health, require personal guarantee and very good financial for your business. Think on what exactly you need the funds for and go after the right product or choose a versatile one.
Yalber and Got Capital is a sponsor of The Drum Marketing Awards USA. Tickets are available for the awards show on Thursday 11 April, 2019.