A Line of Credit... Just in Case

COVID-19

Quick Line of Credit Quote

  • Thousands of organizations are already PRE-APPROVED!
    Are you?

3 Factors to Consider When You Are Choosing Your Quick Business Funding

In business, you must always consider the future consequences of your actions and decisions today. For example, when choosing quick business funding, you have to consider not only which options are best for your business but why.Factor 3: Financing Solutions is the Best Choice for Quick Business Funding

As a small business owner, your biggest responsibility is keeping your business open. To do this, you must constantly think about price, product quality and the competition. You also have to carefully consider your quick business funding options. Choose wisely.

 

Factor 1: Banks are not the place to turn for quick business funding

For one thing, banks take 3 or more months to get it together. They have mountains of paperwork that may take you or your accountant days to complete. You will have to gather numerous documents. These may include (but is not limited to) years’ worth of personal and business tax returns, business bank statements, balance sheets and profit and loss statements. Even after you provide all this, they will probably still deny your application. This means you will have to start the process all over again at another lending institution.

In addition, banks want collateral. You must pledge enough money and assets to cover the cost of the small business loan. This includes cash, equipment and/or real estate. For a home equity line of credit, you will have to use your home as collateral. If you have any problems repaying the money, you will be in danger of losing these assets.

Regrettably, a bank will require a 700 or greater personal credit score. Otherwise they will not even consider your application for a business bank loan. Anything lower and the bank will consider you too much of a risk for an instant business loan. While building your business, you make many sacrifices and often, a high credit score is one of them. This requirement puts a traditional bank loan out of reach for a majority of small business owners.

 

Factor 2: Alternative Financing companies are a Better Option for Quick Business Funding

Over the last several years, alternative financing companies are where businesses or nonprofits should turn nowadays. They are especially beneficial for businesses with $300,000-$10 million in yearly revenue.

Alternative financing companies can often provide quick business lending earlier in the lifecycle of your business. For example, many banks won’t consider a business that has been in operation for less than five years. Most alternative lenders will work with any business that has been operating for at least two years.

Also, when you get small business financing from an alternative lender, you don’t have to give up equity in your business. This allows you to grow without making yet another sacrifice.

Best of all, with alternative lenders, you can get a 24-72 hours written offer about how much you qualify for which is extremely important when you find yourself in a cash flow crunch.

Still, even with alternative lenders, there are some drawbacks. As with everything else in business, some are better than others. Look for companies that are rated A+ with the Best Business Bureau. An A+ is very hard to obtain. (Financing Solutions has been rated A+ since it founding)

 

Factor 3: Financing Solutions is the Best Choice for Quick Business Funding

The ability to obtain fast business capital is what separates a financially sound business from one in danger of failing. Studies show that more than 80 percent of business collapses are a direct result of cash flow woes. It’s crucial to know where you can get funding that is inexpensive and easy.

Financing Solutions (www.financingsolutionsnow.com) is one of only a few companies that offer a line of credit to small businesses. This is a much cheaper and more flexible option than other types of small business funding.

At Financing Solutions, you don’t have to put up collateral in order to get immediate business financing. Even better, we don’t ask for personal guarantees (unless is the case of fraud) either.

As a source for short term business funding, our line of credit is very inexpensive. Also, we make it easy to apply with a simple, 10-question form.

You can get both an answer and your fast business funding in 24-72 hours. A Linf of Credit is extremely valuable even when you don’t think you need it now. It is a great back up plan to have.

 

The Benefits of a Line of Credit for Quick Business Funding

With a business line of credit, you can also build up or establish your credit history. Banks deny more than half of the small business loan applications they receive. One of the main reasons for this is credit below 700.  It’s also a more suitable way to get extra cash when you need it. Using a credit card for a cash advance is a very expensive method for evening out cash flow. These normally have high interest rates as well as penalties for withdrawing cash.

A business line of credit also gives you greater control of your money. You can decide what to use it for without any restrictions, how much money to withdraw and when you want to pay it back. Also, it’s free until you actually use the funds. There are no fees until you use the line.

Nothing beats the flexibility of a line of credit. When you get a fast business loan from a bank, you must make payments on a set schedule. In addition, there are usually restrictions on how you can use the money. A line of credit has neither of these things.

Also referred to as revolving credit, a LOC can be renewed each year. As long as you make your payments, don’t exceed your limit and remain in good standing. You can continually access funds. In this way, you can make smart decisions that center around your goals for growth instead of your lack of cash.

There are numerous reasons to use a business line of credit. For example, you may need to quickly fix a key piece of machinery. You might also have to purchase inventory before you are able to pay for it with cash. One of the most popular purposes for a line of credit is to make payroll while you are waiting for clients to pay you.

 

Factors to Consider for Business Growth

When starting out, many entrepreneurs believe that launching is the hardest part. Once you are in business for a while, you realize that maintaining and growing is the biggest challenge you face. To survive, you must chart a path for how you will continually grow. Along the way, there are numerous factors to consider.

How to hire smarter – with growth comes expansion and that often includes hiring new employees. Making the wrong decision can affect morale, productivity and customer relationships. You also cannot overestimate the influence on company culture. Have a plan for finding the type of employee who will be the right fit. Additionally, ensure that no employee changes what your company stands for and who you are.

Managing knowledge – there is a lot to know for running your business. You must keep an eye on the competition, stay abreast of trends shaping your industry and tap into the experience of your staff. There will also be a multitude of documents and content that you produce. It can get overwhelming. However, you can’t allow yourself to be a prisoner to all this information. Instead, you have to look for ways to manage it all. Invest in the necessary software and programs to keep it where you need it. You must be able to have it at your fingertips at a moment’s notice and file it out of the way when you don’t. This way, it can be useful without becoming a distraction.

Having a plan for scalability – your business won’t be this size forever. That’s an essential fact to remember as you make decisions and develop processes. For instance, the chain of command and reporting structure you have with 10-20 employees will have to change if you grow to 50-60 staff members. Trying to keep things the same will only slow you down. You must know where you want to be in five years, 10 years, etc. and not lose sight of these goals as you move forward.

The small things – in the quest for the next big thing, we often forget about the little victories. Did you just reach 1,000 likes on social media? Celebrate that. Did you make it to your 6 ½ year anniversary? Congratulate your team. Every small milestone is another step on the road to your success. Giving a pat on the back to yourself and your employees for routine accomplishments and completion of minor objectives is the way to major fortune in the future.

Where you will get quick business funding – it’s easy to forget about cash flow…until it stops flowing. As a small business owner, you have so many things on your plate that even big issues like cash flow can fall through the cracks. It’s your fundamental responsibility to have the right alternative financing company on speed dial so that when the need arises for emergency business cash, you know exactly where to turn. For many businesses, the answer is Financing Solutions.

Related posts

Free Credit Line

As a small business owner, you must free yourself from the belief that someday...

What is Factoring?

In elementary school math, you learned all about factors, but you may not have...