MonthMarch 2019

Capital for Business | Payday Loans




The words “working capital” have already fallen into popular tastes, turned into everyday slang. But the fact is that most people do not really know what they mean. All kinds of business organizations work on the basis of working capital, it is he who makes the operation work. In this text we will make a brief introduction to the topic and explain some related issues.

What is working capital?



Before touching on the main theme of this article, it is necessary to explain the concept of capital. Think of a car, for most people it is just a consumer good, but for those who work with transportation, it is a capital asset. The money used on a day-to-day basis is only currency for consumption, but when we invest it, it becomes a capital asset.

Capital goods are necessarily those used in the production of other goods and services. The capital of companies can be divided into two categories: fixed capital and working capital. Fixed capital is the one that stays in the company for long years, like machines, vehicles, titles, etc. Working capital is the one that is used in the short term as cash and products.

Working capital is expressed in monetary units, since it is used to pay suppliers, employees, taxes, etc. Companies can obtain working capital from different sources, from members’ contributions to bank loans.

What are the sources of working capital?

What are the sources of working capital?


There are 3 basic sources of working capital, we will explain each of them in the following lines:

  • Equity: Part of the partners’ money is used to acquire equipment, real estate, etc. and another part is used for cash formation, or, working capital;
  • Third-party financial capital: Companies may take short-term loans to finance their operations or otherwise discard securities in development funds. In this way, they use third-party capital to spin the cash.
  • Third-party operating capital: There are companies that manage to work with payment periods much higher than those received. Companies that can do this can work with the capital of their customers and suppliers.

The first two sources of working capital are the so-called costly sources, that is, they generate financial costs for the company. In the case of third-party capital, the cost is the fee charged on interest. In the case of equity, the price paid is the opportunity cost relative to the amount.

When the company can obtain capital via the third way, there are no financial costs involved, since it has excess cash. However, entrepreneurs need to assess whether lengthening deadlines is not driving up supplier prices. It should also be checked whether cash receipts are obtained at the cost of large discounts.

Read here on how to prepare for Black Friday

How can companies improve working capital management?

How can companies improve working capital management?


The best way to improve working capital management is by first organizing your company accounts. It is not good to mix accounts of the partners with those of the firm and nor with extraordinary payments. The cash of the company must circulate only resources related to its operation.

As for the operationalization of working capital, it is obvious that companies that have their own resources face less risk. However, if the company needs to keep a lot of cash, this reduces its profitability. This is because it is necessary to increase the assets employed in the operation, without necessarily occurring, a proportional increase of profits.

The most efficient way of working the working capital is negotiating the shortening of the terms of receipt and lengthening the payment deadlines. The big retailers are experts in this type of activity, they buy products to pay on very long terms and sell with shorter deadlines.

Obviously, raising the balance of accounts payable increases the risk of the company. However, if the default rate is low, there will be no problems. The combination of long payment terms, short delivery times and low delinquency is the perfect liquidity recipe.

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How to measure the amount of ideal working capital for the business?

How to measure the amount of ideal working capital for the business?


The amount of working capital required is given by an index called the NCG (need for working capital). The index measures the volume in currency, necessary to keep the company in solvency. The NCG is given by the difference between current operating assets and current operating liabilities. Let’s understand what each of them is:

  • Current Operating Assets – Sum of all short-term receivables (trade notes, checks, card sales, etc.) and inventories.
  • Current Operating Liabilities – Sum of all short-term liabilities of the company, such as salaries, payments to suppliers, taxes, rents, etc.

The need for working capital will be given by the formula: NCG = ACO – PCO.

To understand better, we will see the example of company X. If in the month’s balance sheet, the manager realizes that there is an average of R $ 30,000 to receive and R $ 45,000 to pay, it will have an NCG of R $ 15,000 negative. So, you need to have exactly $ 15,000 in cash to make the business run under the current conditions.

The NCG of R $ 15 thousand is the minimum size of working capital required by this company.

Read more here about negotiating deadlines

How to get working capital quickly and cheaply?


Until recently, obtaining third-party working capital was only possible through traditional banks. The problem is that these banks charge high fees and their bureaucracy is discouraging.

To solve this problem, fintechs emerged , companies that combine technology with financial services. Some, like Biz Capital, offer loans for working capital in a simple, quick and much cheaper way than in the traditional system.



Inadequate management of working capital is one of the main reasons for corporate failure. There are entrepreneurs who are good at what they do and act in good markets, but they end up sinning in financial management. Mathematics does not forgive anyone who neglects working capital, if money is lacking, the company does not resist. It is therefore ideal for managers to obtain this important feature quickly, simply and of course cheap.



How to Get an Unsecured Loan for Your Company?


Looking for a loan can be a great outlet for companies that need a certain amount of money quickly. The reasons for this decision are several: investments, working capital, renewing stocks, etc. In this environment are unsecured loans.

There are several companies and credit modalities out there, and in this text we will talk about fintechs and their innovations.
In addition, we will talk about how to plan to get a loan without paperwork . Read more below all the details.

Getting an Unsecured Loan

Loans were usually made only by banks, but that changed. There are currently other companies that facilitate the unsecured loan process even for small and medium-sized entrepreneurs.

In this text, we will help you understand how the process of an unsecured and unsecured loan works for your company.



As with all business decisions, for this to be really advantageous, a lot of planning is needed. Do you already know how much money is really needed? What will you use that money for?

First answer these two questions. Being planned makes all the difference when it comes to talking to credit analysts who will ask you questions. In addition, a loan should never be done without financial organization as this can end up jeopardizing the fiscal health of your company.

How are your personal finances?

How are your personal finances?

The focus of the question is on personal accounts even. So even if done in the name of the legal entity, the financial institutions will check the accounts of the company’s partners.

That is, before you apply for the loan, resolve these personal issues so you do not encounter problems during the process.

Do you know how to consolidate or unify your debts? Read more about it here

Be aware of interest

Be aware of interest

Consider how much your company is making every month and put the interest charged on unsecured loans at the tip of the pencil.

That way, it’s also worth checking if this really is the best time for your business or if they represent a big break in finance.

Assess your company’s ability to pay installments

Assess your company

It is at this time that you should abuse your accounting advice or your financial organization worksheets. This will ensure that all calculations and projections are done correctly.

This work is of the utmost importance in helping to organize. This will help in getting the loan and also during the installments.

Do not be scared

Do not be scared

Nowadays, so-called fintechs – smart companies that come up with the purpose of using cutting-edge technology and the internet to provide a much better service than has traditionally been offered – have surfaced in the financial market and really changed the paradigm of unsecured loans.

A practical example of this reality is BizCapital, with credit assessment for your company in up to 2 business days.

The entire procedure is done online and completely. All fees are set in your credit simulation, meaning no surprise at the time of payment and your business can be scheduled quietly.

All this without real guarantees for the granting of credit. Being ideal for small and medium-sized companies, especially for those who are starting now.


Getting Unsecured Loans

The first step is to really “clear your name,” scan any debts that may get in the way and try to liquidate them, the financial institutions will be eyeing them during your credit review.

In general, just enter the BizCapital website and make your request , because from there the service will follow.

Along with BizCapital, this process is very simple. To order, simply fill out a form stating the amount that your company is needing at the moment, the reason behind this request (working capital, purchase of equipment, stock purchase, marketing and sales, among others).

After that, just enter other personal data such as your full name and CPF; the company data (CNPJ and monthly billing) and ready! Your request has been submitted and will be evaluated within 2 business days.


Nowadays, asking for an unsecured loan does not have to be something out of the question, just plan this operation well, after all, it will be a loan and comes with several installments to be settled. After this step, count on companies like BizCapital and are a great solution for small and medium-sized entrepreneurs.


So, did you like the tips of this article? We at BizCapital are here to help business owners who want to see their business take off! To check other tips on the world of entrepreneurship, follow our social networks: Facebook , LinkedIn and Instagram .


Business Loans to Individuals

In Lithuania, as the economy grows, the form of individual business has become more and more popular in recent years – business certificates and individual activities under the certificate. According to the STI data, in one year (from 2014 to 2015), the number of people working under the individual activity certificate increased by almost ten thousand. It is obvious that Lithuanian residents are willing to take their own business. But what are the possibilities for getting this business credit?

Get a credit from a bank, working on an individual activity certificate or a business certificate – mission impossible?

According to the banks themselves, the conditions for obtaining credit for business development for people working under an individual activity certificate or a business certificate are the same as for other business forms. However, the data of the banks indicate quite different information. Customers of large Lithuanian banks working on individual activity certificates or business certificates make up only 5-10% of the total number of loans granted to clients.

For people working under a business certificate or a certificate of individual activity, and receiving stable, successive income for several years, the bank is still reluctant to lend money to business development.

The main obstacle to obtaining a loan is the high requirements of banks

The main obstacle to obtaining a loan is the high requirements of banks

And yet – why do banks so reluctant to lend money to people working individually? There are several reasons.

First and foremost, the bank considers the income generated by the individual activity certificate or business certificate as non-permanent. It is feared that they may fall sharply or disappear at all, and that one may become insolvent. Secondly, the main factor determining the granting of a loan to a person working individually is pledged property. Unfortunately, people who choose these forms of business are usually not willing to risk their lived assets, so only a small part is determined to go to the end and take out a loan from the bank.

Business Loan Loan to Business by Business Certificate or Business Certificate


Unlike banks, Business24 focuses on small business people and individuals working on individual activity certificates or business certificates. We finance even newly established or currently unprofitable businesses with financial difficulties without mortgages.

We understand that it is important for young and small businesses to spend as little time as possible on bureaucratic procedures, so we’ve made it easier for you to get a loan. To get a business loan, just go to and fill out a simple form. Enter the number of the individual activity certificate or business certificate, personal data and receive our response. You’ll fill in the form in minutes, and we’ll answer you in 1 hour, on weekdays from 8 am to 6 pm. We’ll transfer the money the same or the next day.

What Is Budget and Financial Planning | Payday Loans


There is one factor common to all types of businesses, no matter in which market they operate. This factor is money, there is no company that does not need money to spin its operations. However, it is still very common to find small and medium sized companies that do not do the correct budget and financial planning.

Budgetary and financial planning is nothing more than a provisioning of resources for the activities to be carried out. Every business owner has plans to improve and expand their business, but many do not know how this will be done. In this article, we will address the issue of budget and financial planning, explaining the concepts and their application.

The concept of budget and financial planning

The concept of budget and financial planning

As stated in the introduction, budgeting and financial planning is a provisioning of resources for the activities to be carried out. This plan can not be carried out indiscriminately by the financial manager, since it must take into account the operational plan of the company. The plan should be done in a sectorized way, clearly describing how much resources will be made available to each area.

Good budgetary and financial planning should align the return of each activity to the cost of the capital attached to it. You should also look for informational clarity so that everyone knows what is being spent and where. All budgetary and financial planning should contain the sources and destinations of resources.

Once the planning of the year is defined, the budget allocated to each area can be passed on to the managers. It is important that the values ​​are informed in the plan format, so the manager will know the total available per month.

Reasons for good budget and financial planning


In addition to organizing the company’s finances and conducting good management processes, budget and financial planning helps in other key areas of organizational success. Let’s list below, some reasons to perform a good budget planning.

  • Crisis Management

When we speak of crisis, we are not referring only to the economic-financial question. Organizational crises can be operational, legal, procedural, and even financial.

The crisis management must be done on the basis of existing resources, otherwise the complication possibilities will be increased. It is important to have a mapping of the current resources, which can be adapted to raise more resources to solve the crisis. If there is no prior planning, the company may be out of control during the crisis.

  • Business Expansion

There is no way to expand the company without good budget planning. It is necessary that the financial manager direct resources for the operation and for the expansion actions. If there is no correct separation of values, the company will not be able to calculate the return brought by the improvements. Without the correct return calculation, it is unlikely that viable investments will be made.

  • Sustainable growth

Companies with well-planned budget planning can enjoy sustainable growth. Growing sustainably means financing the company’s expansion with resources generated by its own operation. When a company always resorts to external funds to grow, it is not growing in a sustainable way, but rather through contributions from third parties.

  • Operational longevity

Another reason to carry out the budget and financial planning is the search for operational perenniality. This perenniality is a consequence of sustainable growth, mentioned above. Companies that grow in their markets and have healthy finances, can remain for long years in activity.

How to do a budget and financial planning?


The first issue that needs to be raised for budget and financial planning is the prorated operating cost. The prorated cost allows the manager to know how much each area will need to operate under normal conditions.

Next, you must evaluate the investment plans and distribute the resources proportionally to the consumption in the key areas of the organization. Defined how much resources will be consumed, it is necessary to verify how much can be extracted from the company’s own cash generation.

If the resources generated by the company’s cash are not sufficient to fulfill the entire plan, it may be necessary to raise external resources. The collection of external resources should be done as little as possible and at the lowest available cost. Once all the resources are available, the company can execute its plan normally.

What are the biggest mistakes of managers in financial planning?


The two main mistakes of budget and financial planning are the underestimation and overestimation of costs. If the manager underestimates the amount to be spent in the year, ie plan to spend less than the reality, there will be financing problems throughout the operation. Otherwise, when it overestimates the expense, it may be that the company pays for excesses in financial expenses.

Although the two mistakes are quite damaging to the company, the underestimation of costs is almost always more harmful. This is because, when the resource is needed and is not available for use, you will need to take out emergency credit. Short term loans and no collateral are always more expensive than those made within the planning.

Good and bad examples of business budget planning


There are, everywhere, examples of success and failure in business planning. Let’s use two companies that have their accounts openly published in the financial market.

The first firm is Apple, the company meticulously plans how much it will spend and where the resources will come from. Today, the company has more than 100 billion dollars in cash and does not have to resort to bank financing.

The second company is Petrobras, despite having a monopoly on the fuel market, its planning is not well done. The consequence is the constant variation of your results.

Obtaining adequate resources for the application of budgetary and financial planning

Obtaining adequate resources for the application of budgetary and financial planning

When the resources generated by the operation are not enough (which is perfectly normal), you can use credit. Using credit is not bad if leverage has positive effects on the profitability of the business. For the operation to be a success, one must choose simple and inexpensive modalities.

Fintechs such as Biz Capital, has done a fantastic job in granting credit for working capital and also for business expansion. The loan can be requested online and the release is simple and without red tape. The main facility is the cost of credit, which is generally lower than in traditional banking institutions.



Budget and financial planning is the tool that will ensure the regular operation of the company throughout the year. Its execution is essential for the correct management of the organization’s finances. Only planning well done, will allow the company’s perennial growth.


So, did you like this article? We at BizCapital are here to help business owners who want to see their business take off! Keep an eye on our blog and check out other tips on the world of entrepreneurship.