Why Your Business Needs Reserve Business Capital

All successful businesses will always have reserve business capital. It’s necessary to support growth.


The dream of running a small business can quickly come to a crashing end when the small business owner realizes all the revenue that is generated at the small business goes back out to suppliers, employees, taxes, utilities, and other expenses.   Most business owners within their first few months in business will realize that even though money is coming in through the front door, most of it, if not all, is going out the back door (not literally, but you get what we are talking about here).

Bill Spencer owns a small auto repair shop in West Palm Beach, Florida.  He and his wife have been in business for about ten years.  That’s quite a long time when it comes to a small business considering that most small businesses fail within the first couple of years. The truth is that most businesses are succeeding, but fail because of the lack of business cash flow. If the owners had more money to continue to fund the growth of the business most would flourish to be big successful businesses.

The challenge of the small business owner is balancing money that comes in to keep the business afloat, paying its bills, managing overhead and in most cases taking care of the owner’s home and personal expenses.  In other words, the owner is living off the business at a very early stage.

This is exactly what happened to Bill. He and his wife were successfully running a small business that was making over $750,000 per year in gross revenues. However, after a few bumps in the road that led to lawsuits and other costly events, the business started to suffer.   The interesting thing wasn’t that the business was suffering, the business was actually growing. Bill’s business went from 25 clients to almost 50 clients.  Growth requires money. Most times the small business needs money to support new business spurts.  The business could need more space, more equipment, or more personnel. In Bill’s case, the business needed all of the above.  Coming out of a few costly lawsuits. Bill was still paying back personal loans he took to start the business. It was impossible for Bill to find banks that would lend him money.  So his business started to suffer.  Imagine trying to serve 50 clients with a staff, equipment, and space to service 25 clients.

Joe Samson of Business Lending Credit (BLC) says, “The best part of business is cash flow.  Sure there are some beautiful personal joys of owning and running a small business, but none like having the right cash flow at the right time”.

The moral of the story is that growth and success can kill a small-to-midsize business owner if he/she doesn’t have access to business capital in the form of business loans, business credit lines or business credit cards.

The moral of the story is that growth and success can kill a small-to-midsize business owner if he/she doesn’t have access to business capital in the form of business loans, business credit lines or business credit cards.  Even if your business is doing well today, it is wise to have some reserve business capital handy and available to support your business’ success.

Business Lending Credit can help you find that reserve line of business working capital or business credit cards. Let get your business covered today.  Reach out to BLC using the CONTACT FORM.

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