Artificial intelligence (AI) is disrupting and revolutionizing almost every industry, including accounting and financial planning.

From saving time and gaining valuable insights into financial patterns and client behavior, accountants and accounting firms can benefit from adopting AI technologies in many ways. But how do you know if it's time for your firm to invest in AI accounting software?

It's natural to feel hesitant when it comes to adopting new technologies. The fear that artificial intelligence will replace human labor is widespread, but in most cases, this fear is unfounded. Think of AI like a trusted financial advisor, not your competition-in reality, artificial intelligence is best used to augment accountants' current responsibilities, rather than replace them altogether.

Some experts claim that artificial intelligence for accountants can help reduce costs by up to 80%, and even reduce the time it takes to perform tasks by 80-90%. If your accounting firm falls behind the curve by hanging on to analog, repetitive tasks, you run the risk of losing business to forward-thinking competitors who can get the job done faster-and better.

Embracing AI (ideally before your competitors) will do more than help you stay on the cutting edge-it will also give you the opportunity to upskill your current staff and offer a broader portfolio of services so you can generate more revenue and scale your business.

In this post, we'll take a look at how AI accounting software is transforming the accounting industry, as well as 8 tasks you can automate with artificial intelligence for accountants. Let's jump in.

AI can be used in myriad ways to streamline operations and improve the quality of your services.

Here are a few ways artificial intelligence is already transforming the accounting industry:

• Automated accountants and bookkeepers: Currently, only 34% of financial tasks are automated, yet estimates suggest that 60-80% of historical accounting activity could be automated. Robo-accounting is projected to replace 40% of accounting work such as payroll, uploading files, auditing, inventory, and accounts payable and receivable, improving accuracy and efficiency and freeing up time for accountants to focus on higher-value activities rather than rote tasks or data entry.
• Invisible accounting: AI is excellent at constantly gathering, sorting, and visualizing data to improve business efficiency. By implementing artificial intelligence, the risk of human error and potential lawsuits is greatly reduced. AI accounting software can unearth potential financial fraud risks and minimize human errors such as duplicate invoices, automatically assign expenses correctly to avoid unnecessary expenses, and even invisibly manage compliance as regulations become more complex.
• Optical character recognition (OCR): Optical character recognition technology can scan digitized physical documents to extract data quickly, such as receipts, invoices, purchase orders, and other relevant documents. This data can be automatically fed into other systems, eliminating the need for manual data entry and freeing up time for accountants to focus on higher-value tasks. By rapidly evaluating massive data sets with OCR, AI accounting software can also provide actionable insights that executives can use to make data-driven business and strategic decisions.
• Robotic process automation (RPA): Robotic process automation (RPA) is used to perform repetitive, low-value, and high-volume tasks, and can save an accounting team of 40 people over 25,000 hours of annual work. Examples of actions software robots can execute include: filling in forms, completing reports, extracting, copying, and inserting data, and moving files and folders. By implementing RPA into your accounting firm, your accountants will be freed to do tasks they enjoy, such as collaborating with colleagues, innovating, strategizing, and interacting with customers, leading to increased cost savings, efficiency, ability to take on higher demand, improved compliance, and resiliency, even in a volatile market.
• Analytics: AI accounting software unlocks powerful predictive and prescriptive analytics capabilities. Predictive analytics can be used to anticipate future outcomes, such as forecasting sales and demand planning. Prescriptive analytics, on the other hand, provide raw data that can be used to compare financial decisions, such as suggesting the exact materials or services a client may need to improve output and increase sales.

Artificial intelligence has an incredible return on investment (ROI) with minimal upfront costs and high potential to rapidly scale your small accounting firm. By automating monotonous tasks, AI will maximize productivity while allowing accountants to focus on more creative and mindful tasks that generate more value for your business.

An accountant can also analyze AI data to find valuable insights and business intelligence to improve processes and identify trends. This kind of time-saving automation will allow accountants to spend extended time with their clients, leading to more meaningful conversations that can save time in the long run by fully understanding their clients' needs and expectations from the get-go.

Here are 8 tasks firms can automate with artificial intelligence for accountants:

Automated expense management can eliminate the need to track spending with paper receipts. Simply upload receipts with a picture and allow the software to submit expenditures to the books directly. An automated workflow can also incorporate an approval process for employee reimbursements as well as instantly match data from company credit cards to receipts.

Payroll is one of the most tedious aspects of accounting. Sifting through tax documents, employment types, and employees' work hours can be easily automated with existing AI accounting software suites. Automated payroll can assist with releasing payments, inputting data, and calculating employees' net pay, freeing up time to focus on higher-value tasks that will generate more revenue for your firm.

Bank reconciliation involves matching bank statements with accounting records to correct any missing or duplicate entries. In addition to fetching data, AI can also generate automated reports for added time savings. Automating bank reconciliation catches fraud in real-time to limit a clients’ risk to exposure. With AI accounting software, you can automate bank reconciliation for your firm, as well as for your clients.

Accounts receivable has the highest impact on determining a small business’ bottom line. Accounts receivable includes sending and tracking invoices and collaborating with various stakeholders such as finance, sales, and customer service, and presents multiple opportunities for human error. With automated AR, accounting practices can easily gain faster approvals, automatically send customers payment reminders, and produce accurate invoicing with minimal effort.

Use automated accounts receivable software to:

• Classify accounts to prioritize collection and ensure account information is up-to-date
• Predict and forecast remittance-quickly identify which customers are likely to make late payments, or no payments at all
• Send and receive correspondence with the right tone and content to help your firm collect payments on time
• Track payments automatically
• Collect metrics that provide valuable insights into cash flow, trends, and other customer behaviors

Accounts payable covers all payments owed by your business or your clients' businesses, such as bills, rent, and vendor invoices. Automating accounts payable allows for a reduction in time to payment so that small businesses can reduce late payment fees and maintain a good relationship with their customers and suppliers. AI accounting software can handle:

• Initiating payments to suppliers
• Collecting bills in a central location
• Adding transactions to accounting software
• Automating the approval and sign-off process for invoices
• Managing documents easily, with a searchable paper trail that makes it easier to maintain regulatory compliance or find the documents you need when you need them

Automating accounts payable, freeing up time for accountants to focus on other work. It can also reduce the chance of error, since data is automatically extracted from invoices and bills and classified accordingly.

During tax season, accounting professionals can benefit from delegating tasks to AI. Automated tax compliance and financial reporting software can prepare tax returns, create financial statements, update taxes based on current rates and location, and even predict future revenue. By handing off labor-intensive and complicated reporting to artificial intelligence algorithms, accountants will have added time to identify trends and forecast results.

AI’s ability to audit documents has helped some accounting firms realize productivity gains of over 40%. With financial data housed in one cloud-based location, accountants will have centralized access to financial data that was previously spread across individual spreadsheets and devices. Consolidated databases and AI-powered machine learning processes make it easy to audit an organization's entire financial profile instead of using data samples, providing a big-picture view that will allow accountants to analyze financial patterns and reduce risk.

Accounting firms are regulated by internal corporate, local, state, and federal regulations. AI accounting software can help ensure compliance by flagging documents that don't meet or otherwise violate rules and laws in your jurisdiction, reducing your firm's risk. Machine learning algorithms and artificial intelligence for accountants can quickly review vast amounts of data to identify possible fraud concerns or suspicious activity that might otherwise have been missed by human review.

AI accounting software offers a variety of benefits for accounting firms, from drastically reducing time spent on repetitive tasks to unearthing powerful insights and freeing up time to strategize and consult.

Purchasing and implementing AI accounting software requires an investment of capital in order to purchase and implement the new technology, as well as train existing staff on how to make the most of AI in accounting. Alternative funding options like merchant cash advances can provide a fast infusion of working capital to help you invest in AI accounting software and provide training without losing speed. Merchant cash advances offer a number of advantages over other forms of small business funding, including:

• Simplified applications with less paperwork and less rigorous approval requirements.
• Faster processing and approvals, with funding sometimes available in as little as one business day.
• Greater flexibility and more room to negotiate terms.

With funding from as little as $3,000 up to $500,000, Bluerock Options® can help accounting firms and small business owners access flexible merchant cash advance funding to help purchase and implement AI accounting software.

1. “Artificial Intelligence In Accounting And Finance.” Bernard Marr. Bernard Marr & Co.
2. “How Will AI Affect the Future of Accounting?” Emporia State University. August 23, 2021.
3. “The future of AI in accounting: Part 1 - What is AI?” Jim Eicher. Becker. November 10, 2021.

Seasons change, but for some businesses, one challenge remains the same: seasonal cash flow problems.

While many businesses struggle to manage cash flow, several types of businesses may be additionally affected by seasonal fluctuations, such as:

• Businesses that are weather or season dependent, such as snow removal businesses, landscapers, and some construction firms
• Businesses tied to tourism peaks or a holiday season
• Agencies and creative businesses reliant on client budget cycles
• Businesses tied to specific yearly events, such as accountants at tax season
• Businesses affected by fluctuations in supply, such as retailers

Even year-round businesses can experience seasonal ups and downs-grocery stores, for example, may sell more burgers and hotdogs in the summer, more candy around Halloween, and more turkeys around Thanksgiving.

Regardless of what forces dictate your business's standard seasonal fluctuations, it's imperative that seasonal businesses have enough cash on hand to make the most of their peak profitable periods. In order to meet these predicted spikes in demand, businesses typically have to increase their production power by spending more on raw materials, labor, machinery, and equipment, which in turn requires advanced planning and careful budgeting throughout both the off-season and the previous year's peak season.

Unexpected expenses, lower-than-anticipated revenue, or large purchases can complicate cash flow for seasonal businesses. Small business loans can help businesses overcome these challenges, but it can be difficult for seasonal enterprises to secure the financing they need from traditional lenders like the SBA or banks, particularly during their slow season when cash flow is depressed. Alternative lenders like Bluerock Options® have more flexible approval requirements that consider cash flow alongside factors that demonstrate the overall health and potential of your business, and are more likely to fund seasonal businesses.

The most important thing small businesses can do-seasonal or not-is to track their cash flow year-round so they can better prepare for anticipated lulls. If your business is seasonal, your down-times should be predictable, which means you can plan for them well in advance and use these lower-demand periods to your advantage without draining your cash reserves.

In this post, we'll share 10 tactics businesses can use to combat business seasonality and alleviate seasonal cash flow problems, including:

1. Maximizing peak season demand
2. Managing late-paying customers
3. Offering new services during your off-season
4. Watching operating costs closely
5. Using your off-season effectively
6. Creating a cash flow forecast
7. Managing inventory
8. Creating plans for best- and worst-case scenarios
9. Seeking financing proactively
10. Building your savings

Let's get started.

The more revenue you can generate during your peak season, the better off you'll be during your slow season. There are several ways to maximize your peak season profits to help even out seasonal fluctuations in business, such as:

• Upselling services to existing clients in order to generate more revenue per contract
• Asking for referrals from existing clients so you can expand your client base
• Investing in online or traditional advertising during your peak season, or just before, to attract new business
• Creating a sense of urgency before your seasonal peak arrives by encouraging new and existing clients to book before time slots fill up or purchase before inventory runs out

Often, revenue-generating strategies like these require an up-front investment of capital to promote your business, acquire raw materials or inventory, or hire more staff to meet increased demand. Working capital funding like merchant cash advances is ideal for funding initiatives that will increase your revenue without straining your cash flow.

Merchant cash advances are an unsecured form of financing known as a "purchase of future receivables", in which a business receives a cash advance in exchange for a portion of their daily or weekly credit and debit card sales until the advance is repaid. Because repayments are tied to your sales, MCAs are ideal for funding initiatives that will increase your revenue because increased revenue means faster repayment. This structure can also be helpful for businesses during their slow periods, since repayments will be reduced in proportion to sales.

Learn more about merchant cash advances

Delays receiving payments from clients can exacerbate cash flow problems for seasonal businesses. Late payments may not be overly troublesome when it's your peak season and money is rolling in, but it can create problems down the line when business slows and your revenue is trapped in accounts receivable.

There are a number of ways small businesses can combat business seasonality by better managing late-paying customers, including:

• Sending invoices promptly once a job or contract is complete
• Sending reminders for late payments-some software will even handle this for you automatically
• Shortening your accounts receivable periods
• Offering discounts for early payment
• Making it as easy as possible for clients to pay
• Asking for up-front deposits for large projects

It can be difficult for business owners to manage administrative tasks like invoicing when they're busy operating a business. Investing in financial and business management software can help you send invoices quickly (or even automatically), and the right software can even make it easier for clients to pay their invoices online and on-time without requiring awkward follow ups.

If your business typically closes altogether during your off-season, you could consider keeping your doors open and offering new services during these months. For example:

• Landscapers could offer indoor plant or living wall maintenance, autumn or winter tree pruning, or snow removal
• Bike shops could shift their focus from bike sales and rentals to bicycle maintenance and upkeep, or even winter sports gear
• Hotels and other accommodations could rent spaces for holiday parties or host business events
• Food trucks could offer delivery or pickup during colder seasons
• Businesses in many industries could add ecommerce functionality to their website in order sell products your customers use year-round

If you're thinking about offering new services during your slow season, consider your clients' perspectives and behaviors. What do they do during the off-season that your business might be in a position to help with? Identify gaps and start by offering pilot programs to a few key clients-if it goes well, consider expanding the program the following year.

Rent still needs to be paid, utility bills keep coming in, and you need to pay yourself-even when your business isn't generating revenue.

Keep a close eye on both fixed (rent, insurance, salaried payroll) and variable (utilities, hourly wages, material costs and inventory) operating expenses throughout the year so you can better predict fluctuations and make sure you're prepared with cash on hand. For example, wages may be higher during busy seasons when you have to hire extra part-time staff, or utility costs may be higher during seasons when you have to run the heat or air conditioning longer. Being aware of these patterns will help you create a budget that factors in the peaks and troughs so you can identify where and when you can cut back.

There are a number of cost-cutting tactics you can you can employ to manage seasonal fluctuations in business, including:

• Hiring part-time employees only for the peak season
• Negotiating better payment terms with your vendors
• Leasing equipment rather than buying it, or leasing out your equipment during seasons when you don't need it
• Renting out unused office space
• Looking into skip payment leases, which allow you to make payments during peak periods but stop payments during slow times
• Reducing business hours so you work shorter days and lower wage costs

Off-season slow times are a great opportunity to identify problems that may be stopping you from reaching your peak-season revenue goals. Use your off-season to:

• Create a cash flow forecast for the next year. Read our next tip for more on cash flow forecasting.
• Develop new marketing campaigns so you can generate as much revenue as possible during your peak season.
• Rebuild your website to make it easier for clients to book, purchase, or pay invoices online.
• Gain a deeper understanding of your bills and invoices so you can better budget for recurring expenses and how much revenue you'll need to cover them.
• Review payment terms with your creditors so you can prioritize bills that have penalties for late payment or bills that offer incentives for early payment.
• Compare the most recent peak season over previous years-this kind of comparative analysis can help you assess whether to ramp up your staffing or cut back in future years, or adjust how much inventory you order.
• Review your inventory needs so you can stock up strategically-purchase inventory in bulk when you know you'll need it, and avoid stocking up on items that aren't selling.

Cash flow forecasting is the process of estimating your business's future financial position by thoroughly analyzing sales income, expected expenses, and other sources of cash. Effective cash flow forecasting helps you spot cash shortages before they become a problem, and it can also help you avoid overspending by removing the guesswork on how much money you have to spend each month.

Using your business's budget and tracked spending, create a cash flow forecast for the next year so you can more accurately predict cash flow and proactively identify potential gaps and cash flow problems. Set aside time to refine your forecasts monthly-at the end of every month, update your forecasts and add a new month to the end so you'll always have a rolling prediction of what's to come. Rolling forecasts can also help you take advantage of higher revenue periods when there is more cash on hand.

Be as honest as you can when doing your cash flow forecast. Don't overestimate your peak-season revenue or underestimate your off-season expenses. Use the previous years' information to form a baseline, and add a cost buffer to factor in the rising cost of utilities and inflation in 2022.

As supply chain issues and inventory volatility persist in 2022 and into 2023, inventory management will remain an ongoing challenge for businesses in any industry, including those that don't typically contend with business seasonality. One way to combat these issues is to maintain buffer stock, but for seasonal business, unsold inventory or unused materials can dry up your cash flow by increasing your carrying costs.

Instead of holding onto unused materials or unsold inventory, seasonal businesses may benefit from end-of-season sales that help recoup some costs. Talking to your suppliers can also help you mitigate seasonal cash flow problems caused by unsold or unused inventory or raw materials-some suppliers will even allow you to return merchandise for a credit against next season's orders.

Taking the time to create two budgets-one for strong cash flow, and one where you need more of a cushion-can help you weather any cash flow fluctuations caused by business seasonality. Create cash flow forecasts for best-case scenarios like hiring a new staff member so you can take on more business, as well as for worst-case scenarios like losing a client. Considering all possible contingencies can help you plan for your growth and avoid any major cash flow problems.

Creating plans for best- and worst-case scenarios can also help you make decisions during tougher times. If you already have thoughts and ideas in place for how to manage sluggish cash flow, such as planning to apply for financing, you can approach these strategies with more preparation and less stress and confusion.

Acquiring third-party financing for working capital can be an effective way to shore up cash flow during the off-season.

Having a clear understanding of your sales cycle and annual cash flow peaks and troughs, as well as detailed cash flow forecasts, will help you secure financing by showing lenders that you are proactive and engaged, rather than simply reacting to unexpected expenses.

Merchant cash advances are a popular funding solution for helping to manage business seasonality. Business line of credit for small business can also be beneficial for managing seasonal fluctuations. Seasonal businesses can withdraw from and repay their line of credit as needed and will only ever pay interest on the amount borrowed, similar to a credit card but with higher limits and lower fees.

Not sure what to do with all that extra revenue you generated during your peak season? It can be tempting to re-invest it all right back into your business, but for seasonal businesses, it pays to save or invest at least some of it for leaner times.

Ideally, you should have enough cash on hand to pay for six month's worth of business expenses. Seasonal businesses can improve their cash cushion by:

• Generating as much revenue as possible during their peak season
• Strategically cutting operating costs during off-peak months
• Collecting payments from clients as promptly as possible
• Paying suppliers prudently-that means paying your bills on time, but not necessarily early (unless your supplier offers early payment incentives), so that you have cash on hand when it's needed

Cash flow problems are one of the biggest challenges faced by small businesses that deal with business seasonality. Cash flow forecasting and adopting revenue-generating techniques that enable your businesses to capture more business and collect payment faster can help alleviate cash flow problems caused by seasonal fluctuations in business. Accessing third-party financing can also be a helpful cash flow management strategy for small businesses.

With streamlined online applications, flexible approval requirements, and fast turnaround, alternative funding can help small businesses access the working capital they need to successfully manage their cash flow. Invoice factoring and business lines of credit are two of the most common financing options available to help small businesses maintain positive cash flow, but other alternative financing options like merchant cash advances can also provide working capital when you need it without straining your cash flow.

1. “4 Tips for Managing Cash Flow in a Seasonal Business.” Lisa Stevens. Entrepreneur. December 9, 2017.
2. “How Cash Flow Impacts Seasonal Business.” Catriona Bane. Float. October 13, 2022.
3. “How to Balance Cash Flow in a Seasonal Business.” Arlene Soto. Bplans.
4. “How to Conquer Cash Flow in a Seasonal Business.” Nick Darlington. FreshBooks Blog.
5. “How to Manage Cash Flow for a Seasonal Business.” Revenued. May 17, 2021.
6. “Is Year-Round Expansion Right for Your Business?” The Hartford.

Staffing shortages are challenging small businesses in many industries, primarily in accommodation, food services, and manufacturing.

Raising wages and offering more competitive benefits packages can help you attract new talent and retain your existing staff, but there are many other strategies you can consider to boost hiring and reduce the impact of staff shortages, such as automating routine processes or investing in new software or equipment that will help your business operate more efficiently.

Many of these strategies require an investment of working capital that small businesses may not have on hand after two years of shutdowns and restrictions and major changes in consumer behavior. Merchant cash advances (MCAs) may be an ideal solution for small businesses that want to boost cash flow in order to hire, innovate, and grow. In our latest post for Smarter Loans, we explore how small businesses can use merchant cash advance funding to address staffing shortages, including:

1. Hiring new staff
2. Offering higher wages and better benefits
3. Upskilling existing staff
4. Offering employee referral bonuses
5. Providing flexible work hours
6. Investing in automation technology to reduce staffing needs
7. Working with a staffing agency

Traditional loans are often the preferred small business loan for law firms. Although they typically offer lower interest rates, longer terms, and larger loan limits, traditional loans have their share of downsides-they can take weeks or even months to be approved, and they’re usually reserved for businesses that have collateral and extremely strong credit.

So where do you turn if your law firm needs fast funding or you don't meet the strict requirements of traditional commercial lenders?

With a simple online application, more flexible approval requirements, and shorter turnaround times, alternative lenders like Bluerock Options® may be able to provide the right small business loan for your law firm.

Merchant cash advances are among the most popular funding options offered by alternative lenders. There are no restrictions on how merchant cash advance funding can be used, so law firms can use MCAs however they see fit. In our latest post for Smarter Loans, we explore 7 ways law firms can use merchant cash advance funding to fuel their growth, including:

1. Meet the increasing demand for legal services
2. Invest in your staff
3. Update law firm technology and/or software
4. Offer new services
5. Purchase real estate
6. Acquire another practice
7. Boost marketing efforts

We also take a look at how MCAs can help attorneys respond to challenges such as:

• Navigating COVID-19 safety protocols
• Enhancing data security
• Dealing with long billing cycles
• Covering licensing and registration fees

Between 2014 and 2019, the number of women-owned businesses in the USA grew by 21%-that's more than double the growth rate for new businesses overall.

Small businesses that are owned by women can apply for an official woman-owned business certification from the Small Business Administration (SBA), as well as authorized third-party certifiers like the Women's Business Enterprise National Council (WBENC) and National Women Business Owners Corporation (NWBOC).

Registering for a woman-owned business enterprise (WBE) certification provides small businesses with a number of compelling benefits. Most prominently, the SBA's Federal Contracting Program designates that 5% of federal contracts must be given to businesses with a woman-owned business certification in specific industries in which women-owned businesses are underrepresented.

Women-owned businesses can apply for three types of certification:

1. Woman-Owned Small Business (WOSB)
2. Economically Disadvantaged Woman-Owned Small Business (EDWOSB)
3. Women's Business Enterprise (WBE)

WOSB and EDWOSB certifications are offered by the SBA and enable businesses to participate in federal programs for women-owned businesses. WBE certification, on the other hand, is offered by approved third-party certifiers, and is typically accepted by private organizations and municipal governments. If you receive a WBE certification from an authorized third-party certifier, you'll also qualify for WOSB and EDWOSB certification through the SBA.

In this post, we'll explain everything you need to know about receiving a woman-owned business certification, including:

• When to get certified as a woman-owned business
• SBA programs for woman-owned businesses
• Obtaining a woman-owned business certification through third-party certifiers
• Woman-owned business requirements
• How do you register as a woman-owned small business?

Let's get started.

While getting certified as a woman-owned business does provide a number of advantages, certification is not always necessary or beneficial. If you're considering applying for a woman-owned business certification, ask yourself these two questions to determine if it's worth pursuing:

1. Are your products and services targeted to corporations, retail, and/or government agencies? Corporations and government entities work with organizations like the SBA and WBENC to uncover sourcing opportunities with woman-owned business enterprises. If you work with or are hoping to work with these kinds of organizations, getting your WBE certification can help you get a foot in the door.
2. Can you service large contracts? Corporate, retail, and government contracts may be larger than what many small businesses are used to. If your business is unable to handle larger contracts, it may not be worth pursuing your WBE certification.

The Small Business Administration (SBA) offers two certifications for WBEs: Woman-Owned Small Business (WOSB) certification and Economically Disadvantaged Woman-Owned Small Business (EDWOSB) certification. Businesses can self-certify for free.

Both programs require annual renewal in order to maintain eligibility for the WOSB Federal Contracting Program. Additionally, firms must undergo a program examination conducted by SBA or a third-party certifier every three years.

Let's take a closer look at these two programs and their certification criteria:

With WOSB certification, your business will be eligible to compete for federal contracts set aside for the WOSB Federal Contracting Program, which stipulates that 5% of federal contracts must go to businesses with WOSB or EDWOSB certification.

To qualify as a WOSB, your business must meet the following criteria:

• Your business must be at least 51% unconditionally and directly owned by women who are U.S. citizens.
• The woman or women must manage daily operations, make long-term decisions, and hold the highest officer positions available.
• They must also work at the business full-time during normal working hours, though there is no minimum amount of time for the business to be considered operational.

To qualify for EDWOSB certification, your business must meet the following economic requirements in addition to the WOSB criteria listed above:

• The business owner's personal net worth must be under $750,000
• The business owner's adjusted gross income average over three years must be less than or equal to $350,000
• The fair market value of all assets must be less than $6M (excluding equity in business and primary personal residence, income reinvested or used to pay business taxes, and funds invested in official retirement accounts if they cannot be accessed till retirement)

If you meet the economic requirements for EDWOSB certification, the SBA recommends applying for this certification over WOSB. Because some federal contracts are further restricted to economically disadvantaged women-owned small businesses, EDWOSB-certified businesses are eligible to bid for more contracts than WOSB-certified businesses.

The SBA recognizes WBE certification from four authorized third-party certifiers:

1. Women's Business Enterprise National Council (WBENC)
2. National Women Business Owners Corporation (NWBOC)
3. U.S. Women's Chamber of Commerce (USWCC)
4. El Paso Hispanic Chamber of Commerce

WBE certifications from these organizations are recognized by state and local governments as well as other private corporations. To qualify for the SBA's WOSB Federal Contracting Program, your business will still need to self-certify as a WOSB or EDWOSB. If you've already received a WBE certification from one of these authorized third-party certifiers, your business will also meet the criteria for SBA certification and the self-certification process should be relatively simple.

Third-party organizations will charge application fees, but unlike the SBA, they also offer additional benefits such as access to expert consultants and other support.

Let's take a closer look at these four third-party certifiers.

The Women's Business Enterprise National Council (WBENC) is the largest certifier of women-owned businesses in the U.S. WBENC partners with 14 regional partner organizations around the country to provide certification.

In addition to being accepted by the SBA, achieving WBE certification from WBENC offers a number of woman-owned business benefits, including:

• Access to supplier diversity and procurement executives at hundreds of major U.S. corporations and government entities that accept WBENC certifications
• Inclusion in WBENCLink2.0, an online database of WBENC-certified businesses
• Formal and informal opportunities to pursue business with corporate and government members, as well as other WBENC-certified businesses
• Access to networking events, procurement opportunities, mentoring, executive education, capacity development programs, and other business tools and resources
• Eligibility for regional and national recognition and awards
• Use of Woman Owned Logo and Women's Business Enterprise Seal as a marketing tool
• Opportunities to promote your business within the WBENC network through sponsorship and participation in national and regional events, contributions to the WBENC blog, speaking opportunities, and more.
• Access to a community of support from other female business owners and like-minded professionals, including opportunities to promote your business within the WBENC network through sponsorship and events, speaking opportunities, and more.

To receive certification, WBENC requires businesses to meet the following woman-owned business requirements:

• Majority (at least 51%) ownership by one or more women
• Demonstrated proof of female management and control of business
• Unrestricted female control of the business in legal documents and day-to-day operations
• A woman holding the highest defined title in the company's legal documents
• Documented evidence of female contribution of capital and/or industry expertise
• Status of U.S. Citizenship or Lawful Permanent Resident for woman owner(s) constituting majority ownership

See a full list of WBENC documentation requirements.

WBENC charges a processing fee for new applications as well as for recertification. The fee ranges from $350 up to $1,250 depending on your annual gross revenue as reported on your federal taxes.

The National Women Business Owners Corporation was the first national certifier of woman-owned businesses in the U.S. NWBOC offers WBE certification using the same criteria as the WOSB program, as well as a "Certified Plus" program for members who successfully complete NWBOC's supplier development program. "Certified Plus" offers these additional benefits:

• More visibility and credentials for potential corporate buyers
• Taking the business owner through the buyer supplier process and addresses quality control, customer service, scalability and defining a value proposition

NWBOC charges a one-time application fee of $400, with annual recertification fees between $200 and $400 depending on the size of your business.

The U.S. Women's Chamber of Commerce is also an SBA-authorized third-party certifier for WOSB and EDWOSB. In addition to WBE certification, they also offer a program called Certification Assist, which provides support for businesses before they formally apply for WBE certification, including:

• Help organizing documents and preparing applications
• Troubleshooting potential issues with prep and eligibility
• Answering questions and concerns before formally applying for certification

USWCC also offers National Women's Business Enterprise (NWBE) certification and International Women's Business Enterprise (IWBE) for corporate and regional governments. If you receive WOSB or EDWOSB certification, you may also secure NWBE or IWBE at no additional charge.

There is a $275 application fee for USWCC members, while non-members will be required to pay an application fee of $350.

The El Paso Hispanic Chamber of Commerce provides support and WOSB certification for businesses in the southwest Texas border area through the Women's Business Border Center.

Eligibility requirements differ by organization and specific certification, but in most cases your business must have more than 50% female ownership to attain a woman-owned business certification. The woman or women must also be the ones who manage daily operations and hold the highest officer positions available.

You'll need to meet the following woman-owned business requirements in order to receive a WBE certification:

• The majority owners must be U.S. citizens
• The company must be a for-profit
• The company must have a place of business in the U.S. and operate primarily within the U.S., or make a significant contribution to the U.S. economy through payment of taxes or use of American products, materials, or labor.
• The business must meet industry-specific size standards based on revenue and number of employees. Start by looking up the North American Industry Classification code for your business or simply do a keyword search with the SBA's online tool. Then, enter the NAICS code and your 3-year annual average revenue. Look for a green check mark that shows you meet the size requirements.

Be prepared to provide the following business documentation:

• Company name and fictitious business name ("Doing Business As" DBA) certificate
• Owners' names, addresses, and company website
• The company's legal structure
• Incorporation date
• Articles of organization/incorporation, partnership or joint venture agreements, voting agreements, and any amendments to these documents
• A list of each proprietor, partner, shareholder, or member within the 12 months preceding the date of the application
• Statement of information filed with Secretary of State listing officers, directors, managers, members, or general partners
• DUNS number (from Dun & Bradstreet)
• Any affiliate relationships
• Contact information for regular clients
• Employee information, including resumes of all owners, directors, partners, officers, and key personnel
• Authority to conduct business in the state and/or certificate of good standing issued by Secretary of State
• Bylaws and amendments
• Minutes of corporate shareholders and directors' meetings
• Shareholder agreements
• Professional, industry, and/or business licenses
• Copy of lease or deed for business location
• Current bank statements for all deposit accounts and loan statements
• Financial statements for three years, including balance sheet, profit & loss statement
• EIN (Federal Tax ID)
• Business and/or personal loans
• Issued stock certificates and stock ledger
• Financial institution signature cards
• Documentation of how the company was capitalized

You'll also need to provide the following personal documents:

• Birth certificates, naturalization papers, or unexpired passports for each woman business owner
• Driver's licenses of all owners
• Three most recent personal tax returns including W-2s and all schedules for each woman business owner and her spouse (for EDWOSB)
• IRS Form 4506-T, Request for Tax Transcript for each woman business owner and her spouse (for EDWOSB). If your business has an 8(a) certification for ownership by economically disadvantaged individuals, and you are also applying for an EDWOSB certification, you may upload your 8(a) certificate and annual review letter instead of the above financial statements.

You can self-certify as a WOSB or EDWOSB for free by applying directly through the SBA. Authorized third-party certifiers may use a different process, but you can expect to follow these steps:

1. Determine your eligibility. Do you meet the criteria set by the SBA or your third-party certifier of choice?
2. Compile documentation. Be prepared with all the required documentation before you apply.
3. Complete your online application and pay any required application fees.
4. Application review and/or site visit. This process can take up to 90 days. Some third-party certifiers, such as WBENC, will require a site visit as part of your application review.
5. Certification determination. The SBA or third-party certifier will determine whether your application is approved and will notify you regardless of the result.

No matter where you're applying, it takes about three months to process your application. You must also recertify annually to continue receiving woman-owned business benefits.

Women-owned businesses can apply for three types of certification:

1. Women-Owned Small Business (WOSB)
2. Economically Disadvantaged Women-Owned Small Business (EDWOSB)
3. Women's Business Enterprise (WBE)

Available through the SBA and authorized third-party certifiers, receiving a woman-owned business enterprise (WBE) certification provides small businesses with a number of compelling benefits, including access to federal contracts through the Small Business Administration's WOSB Federal Contracting Program.

If you're having trouble accessing the funding you need through traditional lenders, even with WOSB, EDWOSB, or WBE certification, direct online lenders like Bluerock Options can help you access the working capital you need to maintain operations, cover unexpected expenses, and continent to grow your business.

Alternative funding like merchant cash advances offer a number of advantages over financing from traditional lending institutions, including:

• No collateral requirements.
• Streamlined online applications with less paperwork and less rigorous approval requirements.
• Faster processing and approvals, with funding available in as little as one business day in some cases.
• More flexibility and more room to negotiate terms.

Alternative lenders typically specialize in innovative forms of funding like merchant cash advances. Merchant cash advances are ideal for businesses who need funding quickly, don't meet the strict criteria of the SBA and other traditional lenders, can't provide collateral, or would prefer not to seek funding from friends or family members. With funding from as little as $3,000 up to $500,000, business owners can access alternative funding that suits their unique needs.

Long-term small business funding from lenders like banks and the Canada Small Business Financing Program (CSBFP) have historically been the go-to option for small businesses seeking funding in Canada. But long-term loans aren’t always the best option for your small business-sometimes, short-term small business financing can make more sense.

Long-term loans are often ideal for businesses that have established good credit, a strong financial history, and a solid cash flow. Short-term loans, on the other hand, may be a better option for new businesses who need fast working capital or who may not meet the strict requirements of traditional lenders.

To help you understand the difference between short-term business loans and long-term loans, we took a closer look at both funding options and when to consider them in our latest article for Smarter Loans, an online lending resource in Canada.

Read the full article to learn more about:

• Repayment terms for short- and long-term funding
• Types of short- and long-term funding
• Short- and long-term business loan rates
• Qualification requirements
• When to use a short-term loan vs long-term loan
• Advantages and disadvantages of short- and long-term loans
• Who should apply for short- and long-term business funding
• Can you get a business loan without collateral?
• How to get a business loan without collateral, including lender types, funding types, and required documentation

Poor cash flow management is the most common reason small businesses fail, and nearly a quarter of business owners report small business cash flow management and payment collection as one of their top three challenges.

In this post, we'll share 13 actionable cash flow management strategies for small businesses, including:

1. Making cash flow analysis part of of your regular routine
2. Investing in financial management technology
3. Sending invoices quickly
4. Managing inventory
5. Asking for a deposit or milestone payment structure
6. Offering discounts for early payment
7. Making it as easy as possible for customers to pay
8. Asking for longer repayment terms with your vendors
9. Paying your bills strategically
10. Factoring unpaid invoices
11. Selling or leasing unused equipment
12. Leasing new equipment instead of buying it
13. Considering a line of credit

But before we dig into these cash flow strategies for small businesses, let's take a moment to review what "cash flow" means and why it's so important.

Put simply, the term "cash flow" describes the action of money moving in and out of your business. Managing cash flow for small businesses includes actions like:

• Minimizing cash on hand
• Accurately and completely balancing incoming cash with outgoing spend
• Ensuring any money spent is done so with a focus on a strong return on investment

There are two types of cash flow small business owners must consider:

1. Positive cash flow means you're earning more than you're spending, which means you'll have cash on hand to cover expenses like payroll, equipment purchases and repairs, loan payments, rent, and other unexpected costs.
2. Negative cash flow, on the other hand, means you're spending more than you're earning. Businesses with negative cash flow may not be able to pay employees or suppliers, cover their rent, or meet their daily operating costs.

Understanding the difference between positive and negative cash flow and implementing cash flow management strategies for your small business are critical to operating and growing a successful business, regardless of what industry you operate in or how many employees you have.

While "managing cash flow" may sound simple, it can actually be very complicated for a small business owner. It can be tempting for business owners to focus on simply generating profits, but it's important to remember that running a successful business is about more than just revenue.

Focusing exclusively on profits and ignoring cash flow can put your business in a vulnerable position. It's entirely possible for a profitable business to fail if they have negative cash flow and don't have working capital available when it's needed. For example, invoicing a customer may count toward your sales and may be recorded as profit, but until your customer pays, those profits aren't actually in your pocket. Accrue enough unpaid invoices and you may not have the liquidity you need to cover day-to-day operations, manage unexpected expenses, or grow your business.

Cash flow woes are often symptomatic of underlying management issues, but some small businesses are more susceptible to cash flow challenges than others, such as seasonal businesses, new businesses, or businesses that invoice clients rather than taking payment up front.

Implementing cash flow management strategies can help ensure that your small business maintains positive cash flow so that you always have working capital at your disposal, whether you need it to cover an unexpected expense or you're ready to invest in your business's growth.

The best cash flow strategies for small businesses depend on what kind of business you operate and how you typically bill your clients. Here are 13 cash flow management strategies for small businesses in any industry to consider:

The simplest cash flow strategy for small businesses is to, well, actually make an effort to manage your cash flow. This means regularly reviewing both incoming and outcoming cash to make sure you are meeting your goals and maintaining positive cash flow. Monthly or quarterly reviews are the most common, but you may even want to do it weekly if you are new to the practice, or are a newer business.

By streamlining your financial documentation, online accounting software can make managing cash flow for small businesses much simpler. When it's easier to monitor how much money you have coming in and where it's going, you can more accurately project future cash flow so you can spend less time worrying and more time actually running your business.

Online accounting software will give you the ability to manage your cash flow by:

• Capturing, organizing, and analyzing all of your spending. Visibility into spending is a key component of successful small business cash flow management-inaccurately tracking your business's spending can leave you unexpectedly short of working capital when you need it most.
• Organizing all of your financial information into one cloud-based system, accessible from any device.
• Automating financial processes like invoicing, integration with vendors, etc.
• Integrating other software like inventory management and invoicing.
• Creating accurate budgets and financial projections.

If you bill your clients using invoices, you won't get paid till they receive the invoice-and it may take even longer for them to pay their balance, especially if you have long payment terms. Sending invoices quickly can encourage faster payment and ensure your cash flow stays positive.

If your business uses a monthly invoicing model, consider shifting it to bi-weekly or a milestone-based model to encourage faster payments and keep cash flowing.

If your business moves inventory quickly, such as a restaurant or retail store, keeping a close eye on inventory is key to your small business cash flow management.

To keep cash flowing, be prepared to make difficult decisions about items that aren't selling well. Instead of typing up cash flow in unsold inventory, consider offering discounts on inventory that isn't moving so that you can recoup some cash back and free up space for items you know will move quicker.

On the other hand, it also pays to keep your eyes open for opportunities to purchase more inventory for items that do move quickly. Stocking up on these items can boost your cash flow and ensure it stays positive.

If your product or service requires a lot of up front work or large expenditures to purchase raw materials, asking for a 50% deposit to get started is an effective way to manage cash flow while you work on the project. Milestone payment structures can also help keep cash flowing as you complete extended or complicated projects.

Offering early payment discounts can encourage clients to pay their invoices faster. A "2/10 Net 30" structure is common, in which clients receive a 2% discount if they pay their invoice within 10 days; otherwise, the full amount is due in 30 days.

On the other hand, don't be afraid to levy penalties for late payments, especially if a customer is a chronic offender. To reduce the risk of late-paying clients, consider changing your payment terms and requiring payment up front or setting up direct debit for ongoing payments.

Making invoices as easy as possible to pay is one of the simplest ways to encourage clients to pay their balance quickly and improve your small business cash flow management.

Some bookkeeping software includes options for single click "pay now" buttons that allow clients to pay directly from their invoice. You may also be able to set up automated payment reminders-some people simply forget to pay, especially if they're also a small business.

Alternatively, payment plans can make it easier for clients to pay their balance over time because some customers may be more likely to make payments quicker if the payments are smaller and more manageable. If this option is appealing, you may consider charging a small interest fee, and you should be prepared to check their credit rating before you commit to a payment plan.

More flexibility with your payment terms can make it easier to manage your cash flow without the pressure of short invoice terms that may conflict with your business's other fixed expenses.

If you have a good relationship with your vendors, you may be able to negotiate new payment terms that will simplify your small business cash flow management. If your current payment terms are 15 days, for example, you could consider asking for 30 days with a discount for paying early.

If possible, try to schedule your bill payments so that they are not all due at the same time. Start by reviewing your bills and sorting them according to priority, then see if you can stagger your payment dates so that invoices that offer incentives for early payment and your most important bills (like rent and payroll) are covered first. Payments that have more flexibility, such as vendors you have a good relationship with, can be addressed later.

You can also structure your payroll to integrate more seamlessly with your revenue schedule. For example:

• If you generate daily revenue, like retail or restaurants, weekly payroll might be easier to manage.
• If you have a slower revenue stream like manufacturers, a biweekly or monthly schedule might be easier to accommodate.

Invoice factoring involves selling your outstanding invoices to a lender, called a "factor", in exchange for up to 90% of the invoice value up front. The factor will collect payment from the client, and deposit the rest of the outstanding invoice (minus any fees) once payment is received. Leveraging your unpaid invoices in this way can be one of the most effective cash flow management strategies for small businesses that issue large invoices or invoices with long payment terms.

Learn more about invoice factoring for small businesses

Selling or leasing unused or underused equipment to other businesses can boost your cash flow, either temporarily or on an ongoing basis. This small business cash flow management tactic is best for long-lived equipment that is easy to move, transport, and install.

Buying new equipment can be very costly in the short-term. Leasing new equipment, on the other hand, can be an effective cash flow management tactic for small business because it offers access to the equipment you need without requiring a major outlay of cash or a commitment to a fixed, long-term payment schedule. It also makes it easier to upgrade to updated equipment down the line if needed, and equipment leases may even qualify for tax credits.

Business lines of credit offer immediate access to working capital when you need it. If you're considering a line of credit as a cash flow strategy for your small business, keep in mind that it's best to apply for and receive a line of credit before you actually need it, especially if your business is in good financial standing. You don't have to use it, but you can rest easy knowing it's there if you have an unexpected equipment breakdown or another surprise expense.

Business credit cards are another viable option, but often come with lower limits and higher interest rates than business lines of credit.

Lines of credit are available from traditional lenders like banks, as well as alternative online lenders like Bluerock Options®. Alternative lenders have more flexible approval requirements than banks, streamlined online applications, and can even make funding available in as little as one business day.

Learn more about alternative business credit

Small business cash flow management is one of the biggest challenges faced by business owners in any niche. Adopting techniques that enable faster, easier payments from your customers and clients can ease cash flow woes. Accessing third-party financing can also be a helpful cash flow management strategy for small businesses.

With streamlined online applications, flexible approval requirements, and fast turnaround, alternative funding can help small businesses access the working capital they need to successfully manage their cash flow. Invoice factoring and business lines of credit are two of the most common financing options available to help small businesses maintain positive cash flow, but other alternative financing options like merchant cash advances can also provide working capital when you need it without straining your cash flow.

1. “10 effective cash flow management strategies for small businesses.” Firm of the Future. October 7, 2014.
2. “12 Effective Cash Flow Management Strategies for SMEs.” BrooksCity.
3. “Cash Flow Management Strategies and Best Practices.” Lyle Del Vecchio. Planergy.
4. “Eight tips for small business cash flow management.” Wells Fargo.
5. “Struggling for Cash Flow? Strategies for Survival.” Skye Schooley. Business News Daily. Updated June 29, 2022.

The global home health care industry is expected to grow to $663 billion by 2030. As the population over 65 doubles-on track to outnumber children 18 and younger by 2034-and life expectancy stretches into the upper 80s, there has never been a stronger demand for home health care services.

It isn't only the elderly making use of these services. A third of patients in need of home health care assistance are under the age of 60, suffering from chronic illnesses and in rehabilitation programs, relying on home health care services such as:

• Non-medical home care
• Hospice and palliative care
• Senior care
• Personal care services
• Physical and occupational therapy
• Speech-language therapy
• Medical social services
• Adult daycare
• Nursing care
• Nutritional care
• Pain management

The fear of COVID-19 has fueled the demand for home health care services as an alternative to living in a nursing home or long-term care facility. The pandemic has also led to the rise of 24/7 telehealth services as a convenient and safe way to serve patients. The added pressure created by this increased demand has resulted in an urgent need for home health care services, presenting an opportunity for existing businesses to improve operations and scale growth quickly.

In order for home health care agencies to grow, third-party financing is often required. Typically the first options for home health care businesses are SBA loans and bank loans, but funding can be difficult to access through these sources. With streamlined online applications and more flexible approval requirements than traditional lenders, alternative funding is a fast and easy way to access the funds you need to grow your home health care business, often in as little as one business day.

Read on to learn about 10 ways home health care agencies can use alternative funding to fuel their growth, including:

1. Enhancing or developing new home health care services for seniors
2. Purchasing equipment, devices, supplies, and technology
3. Hiring and training new staff
4. Investing in marketing and advertising
5. Paying franchising fees, and obtaining licenses, certifications, and other continuing education or professional development skills
6. Developing digital solutions to scale your business
7. Managing cash flow and payroll during seasonal fluctuations or delayed/denied insurance claims
8. Covering unexpected expenses
9. Complying with state or federal regulations
10. Retaining staff and managing staff shortages

Let's dig in.

There are no restrictions on how you choose to use the alternative funds for your home health care agency. Here are 10 examples of how you could potentially meet your business goals with alternative financing:

As new health services become mainstream, home health care providers must expand their current list of offerings to remain competitive in the market. Skilled services that home health care agencies can offer include:

• Infusion therapy
• Nutrition services
• Pain management
• Social work
• Speech therapy
• Physical therapy
• Occupational therapy
• Psychiatric services
• Nursing care

Alternative funding can be used to hire new staff members who are trained in these services, to purchase new equipment needed to offer such services, or invest in training or continued education for existing staff.

The increased adoption of advanced home health care devices-like dialysis machines and blood glucose monitoring devices-has made it possible to receive high-quality care at home. Medical equipment and home health care supplies you may need to provide to your patients include:

• Respiratory devices
• Feeding equipment
• Voiding equipment
• IV equipment
• Infusion pumps
• Dialysis machines
• Ventilators
• Hospital beds
• Blood pressure monitors
• Wheelchairs

With alternative funding for medical equipment, you can pay for cutting-edge technology and equipment to provide your home care recipients with the best possible care and service.

As demand for home health services grows, your team must expand. Hiring in anticipation of increased workload can help you avoid overworking your current staff due to burnout. Use alternative financing to recruit, source, and hire new talent so you can accept larger contracts and stay ahead of the curve.

Marketing return on investment (ROI) can be as high as 5:1 or even 10:1, yielding up to $10 for every $1 spent. Using funding to boost your home health care business's marketing and increase revenue is a great use of alternative small business financing. Use your funding to:

• Revamp your website
• Develop an organic SEO strategy, such as adding a blog or hiring freelance writers
• Launch a social media or Google Ads campaign
• Create a referral program to attract new clients
• Sponsor community events such as vaccination clinics or blood pressure screenings
• Speak at seminars or conferences
• Run ads in the local newspaper

Use alternative funding to cover license renewals, franchise fees, or even cover tuition and the cost of continuing education to keep your staff up-to-date and relevant in today’s ever-changing market.

In most states (except Iowa, Michigan, Massachusetts, and Ohio), home health care businesses require a license to operate. The cost to obtain and renew licenses can put a strain on your business's cash flow. The associated costs for franchising can also become prohibitive with an initial franchising fee of up to $40,000 and a total initial investment of up to $400,000, which does not include renewal fees and royalties.

Continuing education for your staff can also come with a high price tag, but is critical for providing the best possible care to your patients, including offering new services.

Improve overall efficiencies by automating business processes to enable your team to focus on their work rather than admin tasks. With alternative funding, you can invest in technology to help streamline simple day-to-day operations, such as online payment processing and patient visit scheduling. You can also use alternative funding to automate financial reporting to keep an eye on revenue and analyze cash flow at any time.

In addition to streamlining your operations, digital solutions can help improve patient care. For example, you could:

• Implement a secure HIPAA-compliant teleconferencing tool to share sensitive health-related information
• Develop tools to remotely monitor patients' vital signs and send emergency alerts as needed
• Create a secure mobile app to send medication reminders

Second only to providing excellent care to your patients, maintaining steady cash flow is one of the most critical aspects of running your home health care business. Don’t let a slow season or delayed Medicare or Medicaid insurance claims stop you from growing your business. Bridging financial gaps with alternative funding allows you to focus on patient care without the stress of limited cash flow.

Sometimes the unpredictable happens-equipment breaks down, employees leave, and new regulations arise. Prepare for the unexpected with alternative financing and never again worry about covering surprise expenses.

As minimum health and safety regulations are constantly improving, it's critical that you ensure your home health services are always compliant with state and federal regulations. Use your alternative funding to pay for coverage requirements such as liability insurance and workers’ compensation.

Retaining staff is one of the most prominent pain points for home health care providers, especially as businesses emerge from COVID-19 lockdowns and face ongoing restrictions. Avoid wasted time spent hiring and training new personnel by keeping your employees happy with fair wages and promotions for outstanding performance.

Home health agencies can also use alternative funding to hire temporary staff. This can be a helpful option when there is a sudden increase in patient volume or if there is an unexpected staff shortage.

Home health care agencies can apply for four main types of alternative funding, each with different qualifications and factor rates. We recommend speaking with one of our Funding Advisors to select the best option for your home health care agency.

Here's a quick overview of the most popular alternative funding options for home health care businesses:

A merchant cash advance gives you immediate working capital in exchange for a percentage of your daily credit and debit card sales. Unlike a traditional term loan, which is repaid in monthly installments, payments for merchant cash advances are deducted automatically from your daily or weekly credit and debit card sales.

Since MCA funding is based on your projected future sales, this option is ideal for agencies with lower credit scores or who might not otherwise meet the strict financial requirements of the SBA and other traditional lenders.

Learn more about merchant cash advances

Invoice factoring is a financing solution whereby an alternative lender will advance up to 90% of the value of your outstanding invoices in exchange for immediate cash. This form of funding is ideal for home health care agencies with at least $15,000 in outstanding invoices and maximum payment terms of 30 to 90 days. Usually, Medicare and Medicaid payments will not qualify as they do not let you sell a claim to a third party.

Learn more about invoice factoring

Collateral working capital is a secured form of financing that uses commercial real estate (not a primary residence) as collateral to reduce the risk to the lender. With this added collateral, home health care agencies may be approved for a higher loan amount than other forms of alternative funding.

Learn more about collateral real estate loans

A business line of credit is a beneficial alternative to a fixed-term bank loan. You can borrow as little or as much as needed and only pay monthly interest on the amount you use-not the entire credit limit extended to you like traditional term loans.

Learn more about alternative business credit

The home health care industry is growing, presenting businesses with opportunities to expand. Alternative funding can help fuel this growth by providing the working capital needed to invest in strategies like proactive hiring, increased marketing, or purchasing new equipment.

Bluerock Options provides unrestricted funding for home health care providers in the USA and Canada with $3,000 to $500,000 in as little as one business day. The application process is quick and easy. Simply fill out an online form and submit at least three months of bank statements. A Funding Advisor will then reach out to you within the hour to discuss your funding options and finish your application. Once approved, you could receive up to $500,000 in as little as 24 hours.

Give your patients the care they deserve. Apply online today for alternative funding with Bluerock Options and scale your home health care business.

As the Great Resignation continues in 2022, staffing shortages are a familiar challenge faced by small businesses in many industries. Transportation, manufacturing, and construction businesses are feeling the pinch the most-half of small employers in these industries reported "significant" staffing shortages, with half of businesses also reporting significant losses in sales opportunities as a result. Fifty-eight percent of small business owners in the construction industry reported significant or moderate lost sales opportunities due to staffing shortages, closely followed by 55% of manufacturing and mining businesses and services industries.

According to April's Small Business Economic Trends survey, 22% of all small business owners plan to increase employment to alleviate the staffing shortage. The industries hardest hit by the staff shortage are also the most likely to plan to hire-31% of owners of manufacturing businesses plan to hire, followed by 28% of transportation operators and 24% of construction business owners.

In March 2021, the U.S. Bureau of Labor Statistics reported an all-time high of 8.1 million job openings with a job openings rate of 5.3%-a 43% increase over March 2020, the month COVID shutdowns began. Despite their plans to hire, many industries are struggling to fill job openings-in the same year, the National Federation of Independent Business found that a record high of 42% of small business owners had jobs they couldn't fill. Forty-three percent of small businesses across all industries have current job openings they are unable to fill, and more than half of small business owners in construction (60%), transportation (56%), and manufacturing (50%) reported not being able to fill open positions.

Wondering how to deal with staff shortages when you're trying to hire but can't seem to find the right candidates? Many business owners are raising compensation in order to attract and retain employees-39% of manufacturing firms reported raising compensation in April 2022, as well as 27% of retail firms and 34% of construction and wholesale firms.

Raising compensation is one way to attract and retain talent, but there are many other strategies small businesses can employ to boost hiring. These strategies require an investment of working capital, and after two years of shutdowns and restrictions and major changes in consumer behavior, many small businesses may not have the funding they need to deal with staffing shortages.

Merchant cash advances (MCAs) can be an ideal source of working capital for small businesses who are looking to boost cash flow in order to hire and continue to grow. With a streamlined online application, flexible approval requirements, and fast turnaround, small businesses in almost any industry can quickly access the funding they need to implement attractive new hiring policies.

Let's take a closer look at 8 ways you can use a merchant cash advance to deal with staffing shortages, including:

1. Offering overtime
2. Hiring more staff
3. Upskilling existing staff
4. Offering higher wages and better benefits
5. Providing flexibility to new and current employees
6. Investing in technology to help you automate and reduce staffing needs
7. Working with a staffing agency
8. Employee referral bonuses

Offering more hours to your existing staff may mean paying overtime, but this approach may be preferable to losing clients or compromising the quality of your services. Paying overtime also means you can avoid the higher costs of hiring and training new employees.

In 2022, small business owners can't afford to wait for potential employees to come to them-they must take a proactive approach to hiring in order to find the best candidates for the position. This can mean participating in job fairs, working with college training programs to create a hiring funnel, or developing paid internship programs. These strategies all require an investment of capital, but this investment could return dividends in the form of qualified staff who are interested in building a long-term career at your company.

Merchant cash advance funding can be used to offer new employees higher wages, better benefits, or more competitive salaries in order to attract top talent. You can also use MCA funding to cover onboarding expenses so that you can hire inexperienced staff that may require more training. Once your new staff member is on board and helping you earn more money, you'll be able to repay your cash advance faster.

For example:

• Law firms can hire bookkeepers, additional attorneys, paralegals, office managers, and reception staff so managers and partners can focus on higher-value work.
• Construction companies can expand their team or hire subcontractors so they can take on more projects, bid for larger projects, or offer more comprehensive services.
• Restaurants can hire more front-of-house staff so managers can focus on higher-value activities like reviewing reports, identifying opportunities to improve menus, and addressing supply chain challenges.

Use merchant cash advance funding to offer existing staff additional training so that they can provide more value to your business, work more efficiently, and help you earn more money. Skill-building programs can also be a strong retention incentive for your existing staff.

For example:

• Restaurants can offer the option of working from different kitchens to learn different menus.
• Manufacturers can cover tuition costs so employees can learn new skills.
• Any industry can offer leadership and training opportunities to entry-level staff to prepare them for future roles.

Paying median or above-average wages shows staff that they are valued, which can have a positive impact on job satisfaction. If your employees often work other jobs in addition to yours, a higher wage can incentivize them to take more hours at your business, or even quit their other jobs.

Offering higher wages or other perks, such as more paid time off, better health benefits and sick leave, or retirement savings plans, will also make your workplace more attractive to potential employees, and can minimize turnover.

By showing employees that they are valued, eliminating other demands on their time, and reducing stress during their off-hours, you can help your existing staff be more productive while they're on the clock. Merchant cash advance funding can provide the working capital you need to implement these changes without straining your cash flow.

Offering flexible work hours signals that you value work-life balance, which can give you a strong competitive edge over other businesses in your space. Flexible work hours can also make your business more appealing to different groups, such as parents and recent retirees who are looking for part-time work.

With a merchant cash advance, you can hire more part-time employees to enable flexible work schedules. You could also use your funding to invest in technology-like remote desktops or laptops-so your staff can work from home with a flexible schedule, or you can hire without borders and offer employees the option to work how they want. Investing in work from home tech is especially ideal for professional services firms like law firms, accountants, and other types of office work.

Investing in technology that replaces the need for some employees or helps employees do their work more efficiently is a great way to use merchant cash advance funding to deal with staff shortages. Automating time-consuming but simple tasks such as inventory or taking reservations can help your entire team work more efficiently so you can provide better service. Using technology to de-silo different functions using cloud-based software can also help you integrate your business processes more easily to make onboarding and flexible work arrangements easier to implement.

For example:

• Quick service restaurants can invest in self-ordering kiosks, or use new technologies to automate tasks like dishwashing.
• Construction companies can invest in building information modeling (BIM), telematics, and emerging tech like VR or AR, robots or drones, 3D printing, connected devices, or autonomous vehicles to improve communication, productivity, and safety.
• Retail outlets can add self-checkout and improve point of sale systems to enable online shopping and omnichannel approaches.

If you're wondering how to deal with staff shortages, working with a professional staffing agency might be the right way for you to find talented candidates. Some qualified staff simply prefer temporary work, and working with a staffing agency can help connect you with these workers, as well as fill staffing gaps when permanent employees need time off. Staffing services can also help connect you with qualified candidates for long-term contracts, special events, or seasonal hiring, such as:

• Planned vacation time
• Sick leave or personal emergency leave
• Parental leave
• New system implementations
• Seasonal projects

Merchant cash advance funding can be used to cover agency service fees so you can continue focusing on operating your business rather than hiring and onboarding new employees. Staffing agencies will handle the entire process, from posting the job to vetting candidates, so all you have to focus on is welcoming new team members and growing your business.

Employee referral bonuses can help incentivize your current staff to share new job openings with others they know. If a staff member refers a candidate who gets hired and stays for a certain period of time, the referring employee could receive a cash bonus or other incentive.

Merchant cash advances can provide the working capital you need to fund such bonuses or implement other benefits for successful employee referrals.

Merchant cash advances are a fast form of alternative funding that is ideal for hiring new employees or creating employee retention programs. Because MCAs are repaid from a portion of your daily or weekly credit card sales, retaining staff or hiring new employees that will help grow your business can help you repay your funding faster than other forms of small business loans like SBA loans or term loans.

When issued by a reputable lender, merchant cash advances offer a number of advantages over financing options offered by traditional lending institutions, including:

• Simplified applications with less paperwork and less rigorous approval requirements.
• Faster processing and approvals, with funding sometimes available in as little as one business day.
• Greater flexibility and more room to negotiate terms.

With funding from as little as $3,000 up to $500,000, Bluerock Options® can help business owners access flexible merchant cash advance funding to help hire new staff, retain existing employees, and fuel the growth of their business.

1. “Small Business And The Staffing Shortage by Industry.” William Dunkelberg. Forbes. May 27, 2021.
2. “How to Overcome the Small Business Labor Shortage.” Nextdoor. June 21, 2021.

Compared to inveterate lenders like SBA and banks, merchant cash advances are a relatively new form of funding that emerged out of the 2008 recession in response to a greater need for accessible small business funding. Thanks to their youth-and some shady tactics employed by disreputable cash advance lenders-many myths and misconceptions about merchant cash advances still persist in 2022, such as the perception that MCAs are inherently predatory and only for failing businesses.

In reality, there are many instances in which a merchant cash advance is the best funding option for a small business-for example, when you need funding quickly, need a smaller loan, can't supply collateral, or don't meet the strict approval requirements of lenders like the SBA or commercial banks.

Merchant cash advances are a safe and reputable form of funding; however, there are MCA lenders that will engage in disreputable tactics designed to make the lender money at the expense of the small business's long term health and growth. The most common tactic employed by such lenders is called "merchant cash advance stacking" or "loan stacking". It's important for small business owners to be on the lookout for such tactics, especially if they were just approved or are already repaying an existing merchant cash advance.

Offers to stack advances can be tempting, but merchant cash advance stacking can put small business owners in a tenuous position. In this post, we'll take a closer look at what MCA stacking is, why it's dangerous, why small businesses might be tempted to stack MCAs, and alternative funding options to stacking merchant cash advances.

Let's jump in.

Also known as "multiple positions", merchant cash advance stacking refers to the act of accepting multiple merchant cash advances at the same time, prior to an MCA (or possibly two or three MCAs) being paid in full.

When merchant cash advances are stacked, borrowers must make multiple daily payments to multiple lenders. Since MCA rates are typically higher than other forms of funding, doubling or even tripling the daily payment can put a serious strain on a small business's cash flow, resulting in a higher likelihood of default.

"Stacking" does not refer to business owners who take out a second loan to pay off the balance of an earlier loan in order to acquire more funds. In this case, the second lender can evaluate whether to approve the additional debt and the balance on the first loan will be completely repaid, so there is nothing to stack.

Sometimes, MCA stacking occurs when business owners seek multiple advances to finance growth or cover operating costs, including the costs of previous advances. Business owners can also stack advances on top of other loans, which sometimes occurs when a small business can't get the full amount they asked for from other lenders.

There are also lenders whose entire business model is based on seeking out recently issued advances and contacting borrowers with offers of more funding. When a small business owner receives a merchant cash advance, the initial lender will make a UCC (Uniform Commercial Code) filing, or lien, that becomes part of the public record. A second, less reputable broker may see this and reach out to the business to offer more money. These offers can be very tempting, but accepting a stacked MCA under these circumstances can put the borrower in a tough spot and can also increase risk for the first lender.

Merchant cash advance stacking is especially dangerous under two circumstances:

1. When you accept additional capital just because someone offered it, not because you need it or have a plan for it. Reputable lenders know that your business's success increases the likelihood of you paying back your funding-if they loan you too much and you default on your loan, the lender loses money. Their underwriting processes help determine how much funding your business can reasonably handle and their funding offers will be tailored to the unique needs of your business. It pays to beware of "special offers" that are made shortly after you begin repaying an existing advance-often, these offers will come from brokers who are hoping to capitalize on the underwriting process and diligence of the first lender in order to increase their bottom line.
2. When you accept capital because you are having trouble making payments on other loans. Stacking MCAs or loans under these circumstances can be a slippery slope and many borrowers fall into a debt trap that is more likely to result in default.

Stacking merchant cash advances presents a number of dangers that can put small businesses in a precarious position. Here are 4 pitfalls of stacking merchant cash advances:

Merchant cash advance payments are automatically deducted from your daily or weekly credit and debit card sales. If your business takes out multiple merchant cash advances from different lenders, you'll need to make multiple repayments per day, which can seriously strain your cash flow.

A first advance will be granted based on what the lender reasonably thinks you can pay back, so taking on a second advance means you are likely taking on more debt than you can handle. Even if you can repay each advance, your cash flow will be severely constrained by the automatic daily or weekly repayments.

Sometimes, merchants will take out multiple MCAs to address immediate financing needs without considering how they will pay off their financing. Without a plan for how you'll repay an advance, it can be even more tempting to accept additional funding to cover your fees and repayments, which can increase your debt burden and make it easier to fall into a debt trap.

When you stack advances, your rates and fees may double (or more). The financial burden will only increase as repayments cut further into your daily sales and profit margins, especially on slower days, creating a slippery slope that can significantly increase your risk of default. This can lead to the filing of a UCC lien, the seizure of collateral assets, and other negative outcomes for your small business.

Some loans, including bank loans and SBA loans, may have provisions against taking out other financing such as merchant cash advances. If you accept an MCA when you've already received other funding, you may be in violation of the terms of your initial agreement and the lender may demand full, immediate repayment.

If you've already received a merchant cash advance and find yourself in need of additional funding, there are alternatives to stacking advances. Here are 4 options to consider:

If you already have an MCA and are in need of more funding, you may want to ask your lender about refinancing. Many MCA lenders will consider refinancing advances if business owners have shown they are able to repay their funding on time, especially if more than 50% of the existing advance has been repaid.

If your MCA lender agrees to refinance your existing advance, be aware of something called "double dipping". Double dipping refers to paying fees on top of fees, and occurs when you refinance an advance and your lender uses the funds from the new advance to pay off the existing balance. If both advances use factor rates and have pre-determined payback amounts, your offer may use a portion of the new funds to pay down the remaining unpaid fees in addition to the principal of the new loan, thus driving up the cost of the new loan so that you are essentially paying interest on interest.

A lender who doesn't double dip will waive the fees on the existing advance. A lender who does double dip will issue enough funding to cover the principal and fees in addition to the new loan amount. Always ask your lender for a detailed breakdown of costs-they should be able to tell you whether fees are waived on renewal; if not, consider looking for a different lender.

You may also be able to refinance merchant cash advance funding by acquiring a loan from a traditional lender, especially if your business is in a stronger position than it was when you first accepted the MCA.

Equipment and inventory financing are loans that are specifically issued to fund the purchase or repair of equipment or inventory. The equipment or inventory acts as collateral to secure the loan.

If you are seeking additional funding to finance the purchase or repair of equipment or inventory, this kind of financing may be a better option. Instead of automatic daily or weekly repayments, equipment and inventory financing is often repaid using set monthly payments, which may be easier for your small business to integrate into your cash flow and monthly bookkeeping.

If your business has a large number of outstanding invoices or you issue invoices for large amounts, invoice factoring can help you access the money you are already owed before your client pays.

With this form of financing, you essentially "sell" outstanding invoices to a lender, called a factor, in exchange for immediate cash. The lender will collect payment on the invoice from your client and will pay out the remaining amount to you (minus any fees). There are no repayments to worry about, which means there will be less strain on your cash flow.

Learn more about invoice factoring

A business line of credit is a flexible form of financing that allows business owners to draw and repay money as often as needed, only ever paying interest on the amount borrowed. Lines of credit are ideal for shoring up cash flow, covering unexpected expenses, or financing growth. With a monthly repayment schedule, this form of financing may be easier to manage compared to multiple or large daily automatic withdrawals.

Reputable lenders will not engage in predatory practices like merchant cash advance stacking. When issued by a reputable lender, merchant cash advances offer a number of advantages over financing options offered by traditional lending institutions, including:

• Simplified applications with less paperwork and less rigorous approval requirements.
• Faster processing and approvals, with funding sometimes available in as little as one business day.
• Greater flexibility and more room to negotiate terms.

With funding from as little as $3,000 up to $500,000, Bluerock Options® can help business owners access flexible merchant cash advance funding to fuel the growth of their business.