Unsecured Business Credit and How it can Help Cash Flow Problems

At some point in time, the reality with most businesses is that fluctuation periods would eventually come and such companies will have to face problems regarding their cash flow. A company may experience a financial crisis wherein more cash may be going out than entering as profit.

It is very important for any enterprise to never run out of funds, especially if the life of the business is dependent on being able to make large purchases of goods for production. In such dilemmas that many business owners are either facing or are at risk to face in the future, having an unsecured business line of credit could make all the difference.

What Is An Unsecured Business Line of Credit and How Does It Help?

An unsecured credit line for your business is a type of financing resource that can provide your company with the money that it needs without requiring collateral. Having such a credit line for your company can be of great benefit, especially when faced with problems on cash flow. This can provide you with the temporary funds that your company may need for operations to continue.

This is extremely vital especially when funds are simply either lacking or not available but your business is greatly dependent on making purchases for production and profit to come in. Aside from that, this type of credit line can also be beneficial for commercial use in such a way that it involves fewer risks for your part as the business owner as no collateral is involved. This means that you do not necessarily have to gamble your company’s other available resources.

Most lenders offering this credit line can also charge less interest and even a bigger credit limit as compared to other sources of finance. Assuring that your company has an unsecured line of credit will be a big step of precautionary on your part to keep your company afloat, even when faced with financial crises.

What Should I Consider Before Applying For An Unsecured Credit Line?

What you should know about trying to secure such a credit line is that it may not be as easy as you want it to be or that it may not come right at an instant. In applying for unsecured credit lines, lenders would usually take the extra step of checking on your company’s credit history. This is necessary for them to do, as they are risking more by providing you with finances without the collateral.

And, thus, before you can be approved for an unsecured line, make sure that your company has maintained a favorable credit score. These lenders are interested to find out if whether your company is capable of making the right payments and purchases for both your parties to gain good income.

In running your own company, sometimes being prepared for possible problems can surely play a big role in helping you ride the tides of business. For sharp entrepreneurs, even when there is no immediate need for the extra funds, having an unsecured credit account at hand will be a good cautionary tool for anything that could possibly go wrong with the business.

After all, you can never know exactly when your company might experience cash flow problems. But knowing that you have back up when funds become unexpectedly tight through unsecured business lines of credit, will surely set a whole lot of difference for your business to step up the ladder.

Problems on the Team: A Mini Case Study – Part II

Read Part I for background information.

What might be the primary reasons for the team feeling as they are?

The team likely does not understand the value of teamwork and the benefits of being a member of this team. It is also likely that limited, if any, time has been spent on building a team environment. They don’t appear to understand why they are a part of the team, which means they don’t understand how they can contribute to the team – individually and as a team.

What should be done at this point?

Meet one-on-one with team members to understand their concerns more fully and determine commitment to team and teamwork. Understanding their past experiences on teams will help in getting them committed to this team and to the project

Meet with the team as a whole to discuss: Purpose of the teamGoals of teamHow they will work togetherHow they will be recognized for their efforts both individually and, more importantly, as a teamCollaborate with the team to establish roles and responsibilitiesHow they will operate as a team (problem solve, resolve conflicts, make decisions, meetings and reporting on status, etc.)Hold a team building event so the team members get to know each other and begin to build trust. You need to establish a relationship to begin to build trust and work together as a team.

What should have been done from day one to potentially avoid these issues?

The team leader needed to spend time before the launch of the initiative enabling for the team to get to know each other, establish operating procedures for the team and ensuring they understand how they can contribute to the success of the initiative. It is important to understand the members of the team you will lead so that you understand how to engage and motivate them and keep them committed to the project. To do this – you must build relationships with each and every one and understand their own goals and objectives and work to map those goals and objectives to achieving the goals and objectives of the project.

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Problems on the Team: A Mini Case Study – Part II

Read Part I for background information.

What might be the primary reasons for the team feeling as they are?

The team likely does not understand the value of teamwork and the benefits of being a member of this team. It is also likely that limited, if any, time has been spent on building a team environment. They don’t appear to understand why they are a part of the team, which means they don’t understand how they can contribute to the team – individually and as a team.

What should be done at this point?

Meet one-on-one with team members to understand their concerns more fully and determine commitment to team and teamwork. Understanding their past experiences on teams will help in getting them committed to this team and to the project

Meet with the team as a whole to discuss: Purpose of the teamGoals of teamHow they will work togetherHow they will be recognized for their efforts both individually and, more importantly, as a teamCollaborate with the team to establish roles and responsibilitiesHow they will operate as a team (problem solve, resolve conflicts, make decisions, meetings and reporting on status, etc.)Hold a team building event so the team members get to know each other and begin to build trust. You need to establish a relationship to begin to build trust and work together as a team.

What should have been done from day one to potentially avoid these issues?

The team leader needed to spend time before the launch of the initiative enabling for the team to get to know each other, establish operating procedures for the team and ensuring they understand how they can contribute to the success of the initiative. It is important to understand the members of the team you will lead so that you understand how to engage and motivate them and keep them committed to the project. To do this – you must build relationships with each and every one and understand their own goals and objectives and work to map those goals and objectives to achieving the goals and objectives of the project.

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Problems with the Team Leader: A Mini Case Study – Part I

The team has been complaining frequently about the team leader. The project sponsor finally got the group together to understand the concerns he has been hearing. Here is what he heard about the team leader. She…

Tells the team members how to do their tasksProvides information on a “need to know” only basisMust attend and control every team meeting, even sub team meetingsDiscourages conversations on any variety of issues (problem solving, etc.) and makes decisions herself and tells the team what the decision is (with no explanation as to why)Has no tolerance for “small talk” during team meetings

Many of the team no longer want to work with her.  Some are afraid of her.

What should the project sponsor do to fix the issues the team is having with the team leader?

What are your thoughts on the question above? Please share your ideas in the Comments field below. Part II of this post will respond to the problem with some potential solutions/ideas to consider.

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Problems with the Team Leader: A Mini Case Study – Part II

Read Part I for background information.

What should the project sponsor do to fix the issues the team is having with the team leader?

The project sponsor needs to intervene quickly to change this situation. First, prior to a meeting, he may want to review the background of the team leader. How much experience does she have leading teams? If she has led other teams within the organization, have they been successful? What feedback has been given about her performance on the team? This will provide him with information about the team leader to help in guiding her to corrective actions that must be taken within a specified (agreed to) timeline. The challenge may be that many on the team no longer want to work with her and some are afraid of her. There may be a case to be made to replace the team lead; but I have a personal preference to try to correct the situation. It will have to be very carefully monitored! The last thing that needs to happen is to have retribution for the team speaking up. The sponsor will need to monitor progress toward correcting the situation and frequently “check in” with the team members to see how it is going. It may be of value to provide a coach that works alongside the team leader to guide her as she works to change her interactions with the team.

In the ideal situation, the following will happen on the team when all is working well:

Sharing leadership on the team (e.g., allowing others to lead meetings or problem solving sessions)Encouraging participation in resolving issues and addressing conflicts on the team, following collaboratively-developed processesCommunicating frequently, openly and honestly with the team, sharing information about the projectEnabling for opportunities for the team to socialize and team build, which will enable for a much stronger and committed teamTaking time to understand the expertise and skills of each member of the team to ensure the team members have the right roles and responsibilities and are able to take on assignments that enable for learning opportunities Logging In...