About Us
JFN ENTERPRISES is the go-to financial resource for every small business - helping you face your challenges, achieve your financial goals, and grow businesses as big as your aspirations.
We know that America's small businesses deserve to know and understand their financial options. Fiscal decisions that make or break a business. We provide the funding to help business owners easily identify their best-fit financial products and, ultimately, make better business decisions.
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Our mission is to give business owners the tools and advice they need to build great businesses - businesses that create more jobs, grow the economy, and keep alive the thriving, vibrant local communities we all call home.
What is a Business Cash Advance and How does it work?
A business cash advance, also known as MCA funding, is a type of loan that is based on the future revenue that a company will produce. In other words, a company can receive a small business cash advance immediately, and then cover it by selling future sales to the lender at a discounted rate.
Unlike a traditional loan, where you can borrow a fixed sum and then pay interest until the amount is paid in full, a business cash advance uses a fixed sum that will need to be paid back in the form of a percentage of all future sales.
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For this reason, these types of capital cash advance funding options are popular among companies that deal with point-of-sale technology, such as those operating in retail or hospitality. A cash advance for business allows companies to pay back the loan by giving back a percentage of every single transaction, making it much easier to manage.
Any questions you may have, we've got answers
Why Small Businesses Need Working Capital
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For any small business, working capital is its very lifeline. Working capital for small businesses allows payment for employees' wages, production of goods, leasing of equipment, and more. Without working capital, a small business won't be able to operate its day-to-day business, leading to temporary or perhaps even permanent closure.
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Small businesses must always monitor their working capital. One of the ways to do this is through what is known as the Working Capital Ratio. This ratio takes your current assets and divides it by your current liabilities.
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A Working Capital Ratio below one means you are not meeting your current debt requirements and will need to figure out how to raise working capital. On the other hand, if your ratio is above one, you have sufficient working capital to cover your present expenses.
What is a Working Capital Loan?
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If your current assets fall short of covering your expenses, figuring out how to get working capital for a small business can be a challenge. Fortunately, businesses can cover the shortfall with a working capital loan.
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A small business working capital loan provides funding so businesses can operate and meet payment requirements. You'll see this type of loan packaged as a line of credit, merchant cash advance, or a traditional bank loan. Working capital loan rates vary and will depend on the type of loan you get.
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Whether it's due to seasonal slow-downs or an emergency funding requirement, a small business will need to assess how to obtain working capital. Working capital small business loans can help fill the gaps in cash flow and allow companies to continue their daily operations.
When is a Working Capital Loan Needed?
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The most common circumstances for a working capital loan include:
Cash flow is short. If your business is seasonal in nature, a lack of cash during the off-season period is common. Business may also just be slow for a short period of time. A working capital loan will help cover the gaps in cash-flow during these lulls.
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Unplanned expenses. Small businesses can be unpredictable in nature, so when an unexpected expense pops-up, a working capital loan can help cover the costs.
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Equipment repairs & upgrades. If a key piece of equipment breaks down or you need to upgrade outdated equipment, you can utilize a loan for such instances.
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Business opportunities. If there are opportunities to grow your business, a working capital loan can help fund these ventures.
Whether that be a building expansion, increasing inventory, or running a marketing campaign, extra funding can help position your company for long-term growth.
How to Calculate Working Capital
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Calculating your small business working capital is relatively simple. The formula is as follows:
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Working Capital = Current Assets - Current Liabilities
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Current Assets is the total of all your short-term assets, including cash in your bank account or money owed to you by customers. Inventory you expect will convert to cash within the next 12 months can also be included in your current assets.
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Current Liabilities is the total of all short-term debts, including the money you owe to other creditors and vendors. Your liabilities also include other immediate expenses such as salary, taxes, equipment costs, and building leases.
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Ultimately, a positive short term working capital is an indicator of good financial health for a small business.
Who Qualifies for a Working Capital Loan?
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Qualifying for a working capital loan will vary depending on the type of loan. Traditional loans through banks, for example, will require positive cash flow statements, minimum time in business, and a strong personal credit score.
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Small business owners with poor personal credit scores can still qualify for a working capital loan, although the options may be more limiting. In this case, the lender will look primarily at the profitability of your business rather than your credit score.
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Lenders will also tend to require businesses to have no bankruptcies or foreclosures, a steady income, and consistent cash flow.
The Benefits of a Working Capital Loan
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There are many benefits of a working capital loan, including:
Keep your business running Small businesses often cannot afford to shut down operations for any period of time. Keep your business afloat and pay off necessary expenses via merchant funding.
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Quick access: If you're looking for a quick and fast business working capital loan, a business cash advance may be ideal. You can get same-day funding once all requirements are met.
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Easier access: For unsecured working capital loans, you don't have to put up your business or any other asset as collateral.
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Growing your business: Use a working capital loan for equipment, building upgrades, or any other worthwhile investment that can provide growth to your company.
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Whether it's working capital for a new business or an established business, access to cash through a working capital loan can help position your company for success.
