You’re certainly going to need the cash to start your own business, but what about after? What about the money you need to grow and become more successful? We bet there are plenty of things you’d like to do as a company. The reality is that you have to invest cash first, to get cash. That’s the leap of faith every new business takes. Planning is central to this, which is why companies take regular trips to conference venues, allowing for integral board members the freedom and comfort to express ideas throughout the day. Here are Five tips to find the best factoring companies so that you can have the best financing company for your business.
But how can you get your hands on this elusive moolah? Read on for some of the many avenues potentially open to you:
Business Lines of Credit
This option is more for well-established businesses. Lines of credit work almost in the same way that standard credit cards do. Where there are cash flow shortages, lines of credit can step in and cover the big spends. Depending on your credit history, there are varying cash pots that you can dip into. The more reliable you appear to be, the more money you can access.
For example, before the Christmas rush, you might want to stock up, but you don’t have the funds – a line of credit can help you here, as the money you make will cover the amount of money borrowed.
Alternative loans from online companies like BusinessLoansDirect.com are also worth a try.
Microloans are $35,000 and under – small in business terms. Rates are unfortunately higher than your traditional business loan, but you’re more likely to land this endorsement, as it carries relatively fewer risks for the lenders.
The Small Business Administration (SBA) guarantees small businesses loans. They don’t lend you money, but banks are more likely to lend to you if an independent organisation guarantees as much as 90% of the loan. It means lenders are at less of a risk, if you can’t pay them back.
Unfortunately, SBA loans have declined in availability, ever since the banking crisis, but that shouldn’t stop you from checking them out. Your loan is more likely to have a longer pay-back term, so instead of say five years, you might have seven years to settle your debt. This definitely comes in handy, if your business is a slow grower.
Yeah, most small businesses have a tragic story under their belt of being rejected by banks. Conventional bank loans are around the $100,000, so you’re going to need a pretty convincing portfolio to get that kind of funding. If you’re struggling to pay your bills, don’t even think about it. You’ll be laughed out of the bank.
Always do your homework before you approach a banker. Know which type of questions they will ask. The more prepared you are, the better impression you’ll give off. You have to paint yourself as a low-risk venture; especially now that banks are holding on to their money for all it’s worth. Think about how you appear to a bank, both financially and physically.
Be confident about your business but not cocky. All your documents should be beautifully organised and you should discuss your three year plan. With the right credentials, and just a bit of luck, you could find yourself with the loan you need to get your business growing.