Ben Franklin said, “An investment in knowledge pays the best interest.” Therefore, if you are looking for an interest-only business loan, it pays to do your homework and find out what’s best for the future of your business.
Access to fast business capital is vital for every company. There are many types of small business loans and an interest-only business loan may seem like an attractive option; until you learn more, that is.
What Are the Advantages and Disadvantages of an Interest-Only Business Loan?
Since interest-only business loans allow you to pay just the interest portion for a set number of years, you may be able to keep more cash in your pocket. This can help you better manage your cash flow temporarily, but only if you handle it properly.
Wisely investing or putting aside the money you save can help you build working capital or work as part of a growth strategy. For example, you can make payments to reduce your principal and as a money management tool.
The downside of an interest-only business loan is that you are only avoiding the inevitable. After five or 10 years of paying only interest, you will still have the original loan to repay.
Also, taking out these loans assumes your business will be better off financially in the future, by the time you have to start making payments on the principal. If your business is not in a better financial position, you may experience difficulties making the larger principal payments.
Is There an Alternative to an Interest-Only Business Loan?
When seeking instant business funding, banks are not the best solutions for small businesses. More entrepreneurs are finding success with alternative lenders and business cash advance companies, like Financing Solutions (www.financingsolutionsnow.com).
At Financing Solutions, you get short term business funding with a simple, convenient repayment schedule. Since they offer an easy application process, you can get your money in less than 48 hours. Then you can repay the financing in full in a few weeks or months, when your cash flow is stronger.
You can receive a cash advance or business line of credit. Best of all, more than 90 percent of those who apply are approved.
How to Attract Interest in Your Business
You’ve got a great business and a terrific product. Now, if only you could attract the interest of more prospects and turn them into leads.
One thing you must do is find ways to be wherever your prospects are. Social media makes this easy and inexpensive. With numerous platforms and interest groups, you can engage with the customers you want. For example, if your company sells tools, you can join do-it-yourself chat groups. After following the discussion for a while, you will then be able to ask the right questions to direct the conversation and explain how your product can help to solve problems.
You should also not forget about your current customers in attracting new ones. As people who are already happy with your business, they can be your biggest ambassadors. Encourage them to contribute to important consumer reviews sites with ratings and write-ups about your business. Studies have shown that more than 75 percent of consumers rely heavily on these sites when making a purchasing decision.
Of course, all this can be difficult to do if you are constantly focused on cash flow issues, but Financing Solutions can help to ease your money woes. They offer the financial products like case advances, debt restructuring and lines of credit that you need for business growth.