Top 5 ICB Business Blog Articles of 2018

As we begin 2019, we’d like to thank all of our subscribers for following the ICB Business Blog! If you like the content we share, please don’t hesitate to recommend our blog to a friend, or share on your social media pages. And, if you have a topic suggestion for an upcoming blog, please email us.

The year-end typically brings a lot of countdowns…top songs of the year, top news stories of the year, top movies of the year, and of course, the countdown to midnight on New Years Eve. We’ve put together a countdown of our own: a recap of our top five most popular blogs of 2018:

5. How and Why to Produce a Dependable Cash Flow Projection

Anyone who has worked with businesses understands that “cash is king,” and paying attention to the monthly cash inflows and outflows is essential to survival. Even the most conservatively managed business can find itself in a situation where it cannot meet its short-term cash requirements. One of the best ways to avoid the surprise of a cash deficiency is to prepare a short-term cash flow projection that’s updated regularly to identify and address painful cash gaps before they occur.

In this blog, business banker Mark Maurer offers some tips for controlling cash flow to help avoid surprises down the road.

Read the blog here. 

4. 3 Things to Know About Your Small Business's Working Capital 

All small business owners, regardless of industry and employee count, need to understand their company’s working capital cycle, or the amount of time it takes from producing a product or service to receiving payment for that product and service. The longer the cycle, the longer a business is tying up capital without receiving cash to further invest or pay obligations.

Fully understanding all components of your cycle is a matter of business viability, as it allows you to better manage your cash flow. It’s also an excellent indicator of your company’s efficiency and short-term financial health – positive cash flow is a sign that a business is well-positioned for expansion, growth, or acquisition.

This blog, by business banker Sandy Retzki, offers advice for calculating, managing, and bolstering working capital to help position your company for profitable growth.

Read the blog here.

3. 3 Myths About SBA 7(a) Loans

If you search for “myths about SBA loans,” you’ll find dozens of articles outlining misconceptions about Small Business Administration loans – including the application process, what institution is lending the money, who’s eligible, and approved uses of the funds. However, one thing’s certain: the SBA 7(a) loan guarantee is among the government’s most popular loan guarantee programs, in part because of its relatively low interest rates, longer terms, and potentially lower down payments.

This blog, written by business banker Laurie Olson, sets the record straight regarding the most common myths and, in doing so, provides an overview of the 7(a) and how small businesses can (and can’t) utilize this program.

Read the blog here.

2. What is a Borrowing Base?

One of the many challenges entrepreneurs face is keeping their capital levels sufficient enough to fund their growth. Other than cash on hand, many businesses rely on having a business line of credit (LOC). Young, rapidly growing businesses, including manufacturers and distributors that have a lot of seasonality in their sales, may benefit from having an LOC tied to a borrowing base.

A borrowing base is the amount of money a lender will loan to a company based on the value of the collateral. Lines of credit that rely on a borrowing base are typically made on a percentage of accounts receivable and inventory. It is repaid by customer collections, and new advances are made against receivables and inventory as these are created. Because loans are tied to fluctuating collateral, the amount available for borrowing will increase under increasing sales. This blog, written by business banker Tom Pennings, explains how.

Read the blog here.

1. 9 of Our Favorite Business Websites

As we all know, it can be hard to determine what’s legitimate and what isn’t when it comes to information found on the web. Our business bankers compiled a list of their favorite “tried and true” websites related to business and finance to help you cut through the digital clutter. Topics range from business financing to manufacturing, economic forecasts and more.

This was our most popular blog of the year, and if you missed it, you can read it here.

Start your New Year off right by revisiting these five valuable posts and using the information provided to help make the most practical decisions for the future of your business. Here’s to a successful 2019!

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Topics: Financing, Business Growth, Cash Management, Business Acquisition, General Business, Government Loan Programs/Financing Options



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Views provided in this blog are general in nature for your consideration and are not legal, tax, or investment advice. Investors Community Bank (ICB) makes no warranties as to accuracy or completeness of information, including but not limited to information provided by third parties, does not endorse any non-ICB companies, products, or services described here, and takes no liability for your use of this information. Information and suggestions regarding business risk management and safeguards do not necessarily represent ICB’s business practices or experience. Please contact your own legal, tax, or financial advisors regarding your specific business needs before taking any action based upon this information.