How Does Gross Revenue Affect Your Ability to Get a Line of Credit
Just as market leadership directly translates to higher revenue, gross revenue affects your ability to get a line of credit. It’s important to learn more about how you can increase your profits and your chances of securing small business financing.
What is Gross Revenue?
Gross revenue is the total amount of money that your business or nonprofit makes without taking out any expenses. More importantly, it is one of the areas that any lending organization looks at when considering you for a loan or a line of credit.
Your gross revenue signifies your ability to sell goods and services. It can come from a variety of sources, such as sales, interest and fees.
For reporting purposes, especially with things like contracts that extend for several years, it’s vital that you report your gross revenue correctly. It’s also crucial to know how it relates to quick business lending.
How Do Banks and Other Lenders See Gross Revenue
A bank will look closely at your gross revenue. They use this to determine whether you can afford the small business loan. The lower your revenue, the fewer loan options you will have.
Over the last several years commercial banks have moved away from approving business or nonprofits with gross revenue under $10 million. Thankfully, alternative lenders are replacing commercial banks when it comes to small business lending. They have more liberal lending standards and are less expensive.
Where is the Best Place to go for a Line of Credit?
Financing Solutions (www.financingsolutionsnow.com) is one of the leaders in providing lines of credit to small businesses and nonprofits. Their line of credit is made specifically with you in mind.
One of the main criteria for approval is having gross revenue over $300,000 a year. The large majority of their clients are in the $500,000 to $6 million per year in gross revenue range.
Of course, there are a few other things they will look at, such as the strength of your business. It takes only two minutes to complete their online application and see how much you are approved for.
Their line of credit is a lifeline for many businesses. It costs nothing to get and nothing until you actually use it.
The best time to apply for fast business funding is before you need it. Start today and you will be more financially secure tomorrow.
Quick Tips to Increase Your Gross Revenue
Some business owners believe the only way to improve gross revenue is to increase sales. Sure, that’s one way. Still, there are other things you can do to enhance this number and your chances for success.
First, know your numbers. Make sure you are working with up-to-date, actual figures. Using estimates or last year’s numbers do not give you an accurate picture.
Secondly, adjust your operating procedures. Even small changes can make a big difference. For example, things like outsourcing routine tasks or switching to a relationship-focused sales model may have surprising results.
The most essential step to take is to get immediate business funding from Financing Solutions. This will take money worries off your mind so you can focus on your profits and growth.