Each article on this blog follows one bill through a funding decision for a Rogers, AR or Benton County business. The notes on this page are short worked cases with invented figures: weekly restocks on a line of credit, a mower priced both ways, and cash steps for a child care provider.
Weekly snack and drink restocks at a Rogers, AR convenience store, carried on a credit line
Illustration only, invented figures: a convenience store draws $2,640 on a line of credit every Monday for its snack and drink order and pays the line down on Friday from that week's sales.
| Week | Invented restock drawn | Invented paid down | Invented balance after the week |
|---|---|---|---|
| Week 1 | $2,640 | $1,980 | $660 |
| Week 2 | $2,640 | $2,310 | $990 |
| Week 3 | $2,640 | $2,640 | $990 |
| Week 4 | $2,640 | $3,300 | $330 |
In these invented figures the balance at the end of each week never goes above $990. A store whose stock sits longer carries a higher balance and more interest, which is the figure to watch. The line of credit page sets out how draws, paydowns and the interest between them run.
Repair or replace: a Benton County, AR landscaper prices a mower both ways
Illustration only, invented figures: a landscaper's zero-turn mower needs a $3,085 engine rebuild, or the crew can replace it with a $13,800 new mower.
- Repair: an invented $3,085 now, paid from cash or a short draw on a line.
- Replace: spread over 48 months of equipment financing at an invented 9.6% annual rate, the new mower runs $347.36 a month, with $2,873.28 of interest in total.
In these invented figures the repair costs about 8.9 months of the new mower's payment. The repair wins if the old mower has another full year of work in it; the replacement wins if the next breakdown is close. The repair records for the old mower are what settles it, and equipment financing covers the replacement side.
Business funding articles: Rogers, AR landscapers and child care providers planning for crew payroll
The longer articles on this blog each take one bill and one trade:
- Getting a gym loan: stair climbers, a kettlebell order and one coach payroll for an operating gym.
- Landscaping business loans: an overseeder, a dump trailer and plant stock for one commercial install.
- Child care business loans: classroom tablets and climbers, a director handover and a yearly software license.
- Working capital for crews and cafes: catering payroll, a discounted supplier order and a truck repair.
- Advance or term loan: one cafe amount, compared on what each one collects.
- Where to finance equipment: dealers, credit unions and equipment lenders, with a mixer priced two ways.
Cash steps for a Benton County, AR child care provider before borrowing anything
Some of the gap between pay dates and tuition dates can close without a loan. A child care provider can try these steps first, then size any request on what is left:
- Move tuition due dates to the start of the week or month, ahead of the payroll they pay for.
- Ask regular suppliers for 30-day terms on classroom supplies and food, which some suppliers may offer.
- List every subsidy and tuition payment by the date it arrived over the last three months.
- Set the next equipment item, such as a commercial washer or a van, apart from payroll, because it can be spread over years.
Whatever gap is left after those steps is the figure for a working capital or credit line request, and it is smaller than the gap before them.
By Meadowfield Business Capital · Updated