As a small business owner, you may sometimes feel as if you spend an endless amount of time making plans for everything from what to do in an emergency to ways you can differentiate yourself from the competition. Perhaps the most important focus should be strategies to finance your business.
When it comes to strategies to finance your business, there are numerous options. The trick is finding the methods that will work best for the unique needs of your company. You must uncover the facts about each choice in order to make the best decision.
The Pros and Cons of Various Strategies to Finance Your Business
No matter which strategies to finance your business that you decide to follow, there will be advantages and disadvantages to weigh. For example:
With a bank long term loan, you could stretch your payments out over a year or more, which might make them smaller or easier to manage. However, it is next to impossible for most small businesses to even qualify for a bank loan, since banks require tons of paperwork, a great credit history and enough collateral to cover the loan.
You could also try a bank line of credit. This allows you to use and repay the money only as you need it. While this may be considered more flexible, a bank line of credit typically has variable interest rates, which means that you could be paying more each month. Also, with some lenders, you are mainly repaying interest and, once the term is over, you may still be stuck paying off a huge balloon payment.
Factoring is another choice. With this option, you can get a fast business loan faster than at a bank. Unfortunately, factors usually charge very expensive fees that can add tens of thousands of dollars to the cost of the loan.
There are also merchant cash advances, where you borrow against expected credit card payments. The downside is that these companies insist on having a say in how you run your business. In addition, this is not a good option if your company does not do a lot of credit card business.
Of course, you could always attempt to get a quick business loan from friends, family or other people you trust. However, this could lead to complications that can negatively affect the relationship.
Strategies to Finance Your Business That You May Not Have Considered
Your best option may be a cash advance company like Financing Solutions (www.fundmypayroll.com). They have a quick application process that can be completed in about an hour and you can have the money you need in less than two days.
As a spot factoring company, they will purchase some or all of your accounts receivable and provide you with instant funding. Most importantly, they offer flexible repayment options with no early payment penalties.
Strategies That Can Help Improve Your Business
One way to improve your business is to stay on top of trends and events in your industry. This will help you anticipate potential problems and take advantage of opportunities your competition may have missed.
You can also keep an eye on your online reputation. Since most of your customers are likely to find you on the web, make sure that what they find is positive and accurate.
The smartest strategy is to contact Financing Solutions. They can give you the fast business funding you need.
