How Does a Small Business Develop Credit
A tree must develop strong roots to grow tall and strong. By the same token, a small business must develop credit in order to thrive and succeed.
Most big accomplishments are made of the small steps it took to achieve them. To make your small business great, you have to develop credit. This is the only way to get the fast business funding it takes to go to the next level. Thankfully, the process is easier than you might think.
Why is it So Difficult for a Small Business to Develop Credit?
According to the Federal Reserve Bank, the major reason businesses are turned down for a quick bank loan is no or low credit. Worst of all, anyone can access your business credit report, from suppliers to potential investors.
The number one problem business owners have is that when you get something, you have to sign for it personally. This includes equipment, credit cards, leases and other financing. Your credit score is based partly on how much you have committed to personally verses what the credit company thinks you should be allowed.
Trying to develop credit is the very definition of a Catch-22. You can’t get a fast business loan without credit and you can’t get credit if no one is willing to lend you money.
Bad credit can affect how much interest you will have to pay, payment terms and insurance premiums. Your credit rating is not just about your financial health; it also determines your credibility.
Do You Need to Develop Credit to Get Financing
Fortunately, alternative lenders, like Financing Solutions (www.financingsolutionsnow.com), have stepped in to help small business owners with credit issues. They have helped numerous businesses get the fast business financing they need to survive and thrive.
Unlike a bank, Financing Solutions uses many areas of your business to approve you for financing or a line of credit. More importantly, they don’t report to the credit agencies unless you are in default.
In addition, they don’t put all those restrictions on your money the way a bank does. Their instant business financing can be used for any purpose, such as making payroll, paying business taxes or growth opportunities.
How You Can Develop Growth for your Small Business
Studies have shown that only one-tenth of one percent of small businesses ever becomes a big business. If you would like your business to be a part of this statistic, you have to develop the right growth strategies.
One thing you can do is to find new ways for customers to enjoy your product. For example, if your company makes toothpaste, you can highlight the fact that the product can also be used to clean carpet stains, cell phone screens and piano keys. The more problems your product can solve means more purchases and a bigger market share.
You can also look into franchising your business model. This allows you to open more locations without having to raise working capital or do all the work yourself. It’s also a way to grow your brand faster than doing it alone.
Perhaps the best way to develop your company is to get quick business funding from Financing Solutions. With their help, the sky’s the limit for your business growth.