Have you ever wondered how to loan a business the right way ? Many business owners face serious problems related to the financial management of their business – which affects their growth in the market.

There is a great concern to increase sales results and maximize business revenue. However, there is no point in getting great revenue when finances are poorly managed and resources are misapplied.

It is not necessary to have a million dollar bill to succeed in the market. Likewise, good billing does not guarantee the growth of an organization. The key lies in how finances are managed.

Benefits of financial organization

Benefits of financial organization

Most Brazilian entrepreneurs need to deal with a very common question: how to loan organize a small business ? Even with a lean structure, securing the financial health of an organization can be a challenge.

However, this problem is even more serious when the entrepreneur does not recognize the importance of managing finances. Amidst concerns about closing sales, organizing stocks and negotiating with suppliers, the financial organization can be left out.

For this reason, before we talk about how to organize a company loan, it is essential to reinforce the benefits of this practice :

  • Greater understanding of the composition of results;
  • Tranquility for the continuity of operations;
  • Information to set the ideal sales price;
  • Predictability of future expenditures;
  • Possibility of cost reduction;
  • Assistance in decision making.

How to organize a company loan?

company loan

Now that we better understand the importance of organizing your business finances, let’s understand how to loan organize a small business. The good news is that this is not a complicated routine – just the entrepreneur has discipline.

Here’s how to loan organize a business:

1- Understand the reality of your business


The first step in organizing your business finances is to better understand the moves that take place over the period. After all, each company has a very different reality.

While a service provider has low operating costs to develop its activities, a trading company relies on purchases of merchandise for inventory. That is, the finances of these two companies work in very different ways.

Understanding the reality of your business allows you to see how money usually comes in and out of the company’s cashier. The greater the mastery over these processes, the easier it will be to manage finances.

2- Be disciplined in the record of the movements


Many entrepreneurs want to learn how to loan organize a business but are unruly with regard to recording all transactions – which strongly affects financial controls.

It’s impossible for you to remember every single financial move your business made without writing them down, is not it? Registering this information is critical so that you have access to up-to-date data and can analyze it.

3- Organize cash flow


Cash flow is a tool that organizes all financial transactions conducted by the company – both entries as resource outputs.

This control not only allows you to always have access to the current financial balance, but also allows you to better analyze the expenses paid by your business and seek to reduce them.

4- Manage Accounts Payable and Accounts Receivable


Another mistake made by entrepreneurs who do not know how to organize a small business loan is to stop looking at future accounts. Besides knowing the current balance, it is fundamental to evaluate all the movements planned for the coming months.

A positive balance of $ 5,000 may give you a false sense that finances are good, but a payment of $ 10,000 to vendors the next month indicates otherwise. In the same way, all accounts receivable can reverse a situation that seems negative.

Monitoring all accounts payable and receivable from a company ensures that you are not surprised and can plan your company’s actions based on information that is closer to reality.

5- The importance of managing working capital

5- The importance of managing working capital

Working capital is the money needed to keep the operation in the company’s operations – including the payment of basic accounts, purchase goods to stock, paying taxes, employee salaries and other operating costs.

This is a very important concept when we talk about how to loan organize a business. The goal of any organization is to ensure sufficient working capital so that operations flow smoothly.

However, in some cases it may be necessary to borrow a working capital loan either as an emergency measure to ensure continuity of activities or as an action to promote business growth.

A company that seeks to expand its market and reach a larger number of customers may need a working capital loan to buy more goods for inventory. But within a few months the gains from this action can be fantastic.