5 Common Myths About Small Business Financing

Are you seeking financing for your small business? In the world business, you need money to make money — and small businesses are no exception. With that said, you can’t believe everything you see or hear about small business financing. Below are five common myths about small business financing that you shouldn’t believe.

#1) You Need Over $100,000

While some small businesses may require $100,00 or more to get up and running, most require a much smaller monetary investment. According to a Wells Fargo study, most small businesses require just $10,000 to start. Other studies have shown similar findings, attesting to the fact that starting a small business isn’t very expensive.

#2) Banks Are the Only Source

Banks, of course, offer a multitude of financing options for small businesses, including loans, credit cards and lines of credit. With that said, there are other ways to finance a small business. Private lenders, for example, offer similar financing solutions but with less-stringent requirements. You can also tap into your personal savings or personal credit cards to finance your small business. The bottom line is that you shouldn’t assume banks are the only option for financing your small business.

#3) Financing Takes Months to Secure

Some forms of small business financing can take months to secure, but this doesn’t apply to all of them. As previously mentioned, there are private lenders who loan money and credit to small businesses. Not only is it easier to obtain financing from a private lender, but it’s typically faster as well. While a bank may take months to approve your request for financing, a private lender may take just a few weeks.

#4) All Financing Requires Collateral

You might be surprised to learn that not all forms of small business financing requires collateral. Financing can be classified as either secured or unsecured. Secured financing requires collateral, whereas unsecured financing does not.

#5) You Can’t Get Financing for a New Small Business

Even if your small business is new and has little or no cash flow, you can still secure financing for it. Depending on the lender’s requirements, though, you may have to sign a personal guarantee. Basically, this means you are personally responsible for repaying the loan. Without a personal guarantee, lenders may feel hesitant to lend your small business money or credit, especially if it’s new and has little or no cash flow.

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How to Delete a Vendor in Quickbooks

Has your business ended a contract with a business-to-business (B2B) vendor? Assuming you no longer purchase their products or services, you may want to delete them from your business’s Quickbooks account. Failure to do so means your business’s Quickbooks account may become congested with vendors whom you no longer use. Thankfully, you can remove vendors in Quickbooks by following just a few easy steps.

Steps to Deleting a Vendor in Quickbooks

To delete a vendor in Quickbooks, log in to your account and select “Expenses” under the main menu, followed by “Vendors.” Next, choose “Sales,” at which point you should see a list of all your business’s active vendors. Once you’ve found the vendor whom you wish to delete, click the “Edit” link.

After clicking the “Edit” link, you should see a box with an option for “Make inactive.” Clicking this box will prompt a message verifying that you want to delete the vendor. Assuming you click “Yes,” the vendor will be temporarily deleted from your business’s Quickbooks account.

How to Reactivate a Deleted Vendor

Even if your business no longer purchases products or services from a vendor, this could change in the future. Maybe the vendor offers you a better deal, or perhaps the vendor expands his or her product offerings. Regardless, you may want to reestablish a professional relationship with the vendor whom you deleted from your business’s Quickbooks account.

When you delete a vendor from Quickbooks, the vendor isn’t permanently removed. Rather, the vendor becomes “inactive,” meaning he or she won’t show up on your business’s Quickbooks account. If you decide to continue purchasing the deleted vendor’s products or services, you can reactivate the vendor.

To reactivate a deleted vendor in Quickbooks, perform the same steps as previously mentioned by clicking “Expenses,” followed by “Vendors.” Next, click the “Settings” icon, at which point you can select the option to show inactive vendors. After locating the deleted vendor, select the “Make active” option.

Keep in mind that you can delete customers as well. The steps are pretty much the same, except you’ll need to choose a customer rather than a vendor. Whether you delete a vendor, a customer or both, though, you can always go back and reactivate them later.

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