This past summer, Small Business Administration head Linda McMahon traveled all over the country to talk to small business owners about their future. While most were very optimistic, McMahon noticed two common struggles: the inability to obtain additional funding or find qualified workers. This isn’t much of a surprise considering both problems are directly related. It’s a lot harder to find highly-skilled workers when your budget is severely limited.
Many of these small businesses wouldn’t be experiencing either problem, however, if they knew about alternative business financing companies like United Capital Source. Instead, they continue to put their faith in banks, which are clearly biased towards wealthier, larger applicants.
Discrimination Still A Major Problem
According to USA Today, bank loans were granted to only a third of companies with less than $5 million in revenue throughout the first four months of this year. United Capital Source, on the other hand, does not discriminate based on size, especially when it comes to restaurant business loans and small business loans for retailers. The reputation of the applicant’s industry isn’t an issue either, as we have provided working capital loans and merchant cash advance loans to countless businesses from traditionally “risky” industries, such as hospitality, auto repair, and telecommunications.
McMahon observed that banks are still not providing small business funding to as many women as men, despite the fact that “more women are starting businesses and having a better success rate,” she said. One explanation could be that businesses owned by women typically don’t grow as quickly as male-owned businesses because they start out with less working capital. But at United Capital Source, we devote a great deal of focus on small business loans for women, from cosmetic stores to dance studios. Unlike most banks, we offer unsecured business loans that do not require a high net worth or collateral and feature terms to account for the circumstances of various female-driven industries.
Putting The Borrower First
Banks will forever be overly cautious about approving loans because the terms for their terms are notoriously generic and geared towards drawing a profit, as opposed to seeing their clients’ businesses grow. Companies like United Capital Source design business funding programs to fit the needs of their borrowers. Our credit card processing loans do not carry strict due dates or fixed monthly payments.
A great deal of the business owners McMahon spoke to were in the process of developing business plans. While a business plan is necessary for expansion, the business funding experts at United Capital Source are here to guide you through every step of your investment. Not sure how much capital you’ll need going into the next few months? We will work with you to answer any financial question you might have, and it takes just a single phone call or email to get a response.
How To Find The Un-Findable
The business owners that are having trouble hiring are primarily looking for experienced workers, who are in low supply. There are at least two ways you can work around this problem, both of which revolve around time. You could invest in marketing your business to potential candidates and/or allot yourself more time to train new hires with minor experience. Both options can be accomplished through several UCS business funding programs, such as accounts receivable factoring, working capital loans, or credit card processing loans.
The main goal is give yourself enough funding to cover regular business expenses (bills, payroll, etc) while your attention is devoted to recruiting and training your new hires. You’re probably wondering how you’re supposed to make payments while working less. UCS can arrange your terms so that the amount and frequency of repayment is tied directly to your sales volume.
Many UCS clients take out small business loans during slow periods because they need a little extra working capital to stay afloat and prepare for an uptick in business. These clients often intend to have their staff fully-trained by a certain date. They can count on UCS to provide funding exactly when it is necessary without demanding that a big chunk of the debt be repaid right away or on a strict, non-negotiable frequency in the months to follow.
One Opportunity Leads To Another
You will be amazed as to how much easier it is to find the employees you need once you are able to concentrate on your most important responsibilities without worrying about how much money you’ll have at the end of the month. It’s common for small businesses to be hesitant about hiring if they feel they do not have enough new business to cover an increase in payroll. But for certain industries, they cannot take on more business without a little extra working capital to offset the costs of additional productivity, which can include more equipment, employees, or simply more time.
New business can completely alter a business’s future. At United Capital Source, we believe that if an established business has earned the opportunity to take on a higher level demand, that opportunity should be seized before someone else takes it from you. No, you aren’t in a race but sometimes, waiting for cash flow to stabilize only does more damage to profit margins. If you’re not sure whether or not you are in this exact situation, we will help you figure it out before moving forward. When you are given the absolute best funding program on the market for your unique circumstances, there is no revenue-generating resource that is out of your reach.