There are signs within your business telling you it’s time for funding (cf ‘5 Indicators It’s Time For Funding’). But there are also external factors and trends weighing on your ability to leverage the cash. Here are 3 major reasons to secure funding immediately:
- Threat of Government Shut Down
The Office of Management and Budget (OMB) states that these are the risk to small businesses as a result of the government shutdown.
- Federal loans to small businesses, homeowners and families in rural communities will be put on hold.
- Private sector lending to individuals and small businesses will be disrupted, because banks and lenders will not be able to access government income and social security number verification services.
- Interest Rate Hikes
Transcript from a PBS interview between Anchor Hari Sreenivasan and Eric Platt, Financial Times Reporter states:
- Rise in interest rates impacts businesses access to capital and increases cost. Also impacts consumers and businesses decisions to incur debt, thereby reducing businesses selling capacity.
- End of Year Tax Benefits
Interest from loans and equipment purchased/financed before the end of the year may qualify for tax deductions and possible accelerated depreciation:
- Equipment purchases are eligible for Section 179 deduction treatment:
- 2015 deduction limit of $25,000 (normally $5,000)
- 2015 spending cap $200,000
- Must be financed/purchased and put into service by the end of the day, 12/31/15.
- Tax deductions for interest paid on loans for businesses.
You have always heard that he with the cash makes the rules! By capitalizing now you will be positioned to take advantage of lowest rates currently available, cash flow to manage inventory to buy in bulk for best pricing and even tax advantages to reduce your liability to IRS.
For additional information or to secure the capital you need hit the capital button below and fill out our client profile sheet so we can assist you in securing the best capital available to you.
Author: Andre’ Fox Wilson Sr. “The Banker”, Altima Business Solutions “Empowering You to Focus”