Having low expectations doesn’t always mean you are willing to accept anything. Sometimes, low is good, such as when you are looking for a low-interest line of credit to help your small business cash flow management.
In business, we often emphasize the highs, like high profits or a high-performing product. Still, there are times when you should look low, especially when seeking a low-interest line of credit for your business. After all, you want to keep more cash in your pocket and not pay more than you have to.
What You Should Know about Interest Rates and Your Small Business
Whether borrowing money from a traditional bank or alternative lender, it is vital that you understand interest rates and why they can vary from one business owner to the next. This will help you save money as you compare lenders.
An interest rate is what the lender charges you, on top of the principle. Based on the federal fund rate set by the Federal Reserve, it’s like payment to the lender in exchange for access to fast business capital.
If you have a low credit score, you will typically pay a higher interest rate than someone with good credit. In addition, you will pay more interest for a long term loan than one payable in a shorter period of time.
Where Can You Turn for a Low Interest Line of Credit?
Financing Solutions (www.financingsolutionsnow.com) is one of the first companies to offer a low fee based, line of credit for small businesses that is a fantastically easy alternative to traditional banks. If you have a credit score over 650 with sales above $300,000 in yearly revenue they will approve your business for a yearly line up to $150,000.
Unlike a bank line of credit, with Financing Solutions, you will know, after answering a few questions, how much you are approved for. Then, after providing a few simple documents, your line will be in place.
Their line of credit product is perfect to keep in place because it costs your business nothing until you use it and if you are looking to use the line for just a short period of time, it is very inexpensive. Every business should have this line in place, just in case.
How to Manage the Highs and Lows of Your Business
When things are going well for your business, all is right with the world. On the contrary, when times are tough, you may experience fear, indecision and uncertainty. How you handle these fluctuations can make or break your business.
One thing you must do is remember that whatever you are feeling, your employees will feel, too. Therefore, during good times, they should be awarded and shown appreciation. If things are bad, be as transparent as possible and let them know what’s happening. A culture of rumor and innuendo will lead good employees to leave and customers to defect.
Another thing to do is embrace change. You may also want to use more technology to your advantage.
Perhaps the best course of action is to contact Financing Solutions. They will give you a low fee line of credit so you can stop worrying about cash flow and re-focus on growing your business.
About Financing Solutions
Financing Solutions small business financing product is a great alternative to a traditional bank line of credit because it costs nothing to set up, nothing until used, and when used, is inexpensive. The credit line requires no collateral and no personal guarantees.
Small businesses use their line of credit to help with emergencies or opportunities when cash flow is temporarily down (i.e. Payroll funding)
Please feel free to fill out the no-obligation, 2-minute business line of credit application here. The time to set up a credit line is when you don’t need it so that it is ready to be used, just in case.
Note: Financing Solutions donates 10% of its profits to various nonprofit charities