Credit card processors are often insisting upon cash reserves from small businesses, hurting cash flow management. How would that affect you?

BusinessWeek is calling this tactic a “brutal cash squeeze,” one that can dramatically harm even well-established companies. The article quotes the CEO of Angie’s List, Bill Oesterle, whose credit card processor wanted a new reserve of a whopping $2.5 million. “In two weeks,” Oesterle said, “we would have been in bankruptcy.”

Looking to capture a larger market share? Consider invoice factoring as your small business funding solution to go after new clients and markets.

Let’s face it. Times have been tough, economically speaking, and some of your competitors may be suffering. Perhaps poor cash flow management has prevented them from effectively marketing their business and/or from finding ways to grow their businesses.

In 2009, 1/3 of small businesses admitted to financial worries, including cash flow management problems when credit card limits were lowered.

Trends suggest that 2009 will be challenging for entrepreneurs and small businesses wanting to raise operating capital or improve cash flow management.

Scott Shane shares his perspective in his excellent article, “Top 5 Trends for Small Business Finance in 2009.”

Lack of business funding is one of the top three challenges in business today, reports the National Small Business Association (NSBA) 2007 survey.

The National Small Business Association (NSBA) releases an annual report on business financing in the United States. In 2007, 31 % of business owners surveyed listed a lack of capital as their biggest challenge.