Funding Traps To Avoid For Small Businesses
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Most of the changes that took place in the business lending industry had the same goal: To make the application and repayment processes less complicated. It is now much, much easier for a smaller business to obtain and repay a small business loan. Certain difficulties, however, may never fade completely. One example is the act of deciding whether or not a small business loan is truly a good idea for you, at this specific time. A basic Google search will only leave you even more confused. Each articles seems to list different requirements for approval along with different definitions of all the available business financing options.

At United Capital Source, simplicity just happens to be our specialty. We have removed several elements from the approval process after concluding they were unnecessary and not conducive to the borrower’s success. If you work with UCS, here are three things you don’t have to do to get approved:

1. Ask All The Questions

A lot of the aforementioned articles insist that borrowers prepare dozens of questions for potential business lenders. This suggests that, if you don’t ask enough questions, the business lender will view this as an opportunity to swindle you. It gives the impression that any remotely good business funding program is laden with fine print. You can’t blame people for anticipating these dangers. They have likely experienced them firsthand after dealing with a bank or virtually any big business. But unlike more conventional business lenders, our top priority at United Capital Source is not to draw a profit. It is to find the very best business loan for your business.

So, while you should most definitely come prepared with questions, you should by no means assume that we would recommend a business loan that benefits us more than you. What you should be prepared to do is tell us as much as you can about your current and future financial health. As long as we know everything worth knowing about your business, you will not have to worry about whether or not you could be recommended a more advantageous and sensible option somewhere else.

2. Stretch The Truth

No business is perfect. Countless external circumstances, often beyond your control, can obstruct cash flow. In the past, small business loans were only for companies that fit very tight criteria. You could only use the money for certain things, pay the same amount in expenses each month, or be able to fulfill the same repayment terms as another business of the same size or industry. This may have encouraged potential borrowers to stretch the truth when speaking to business lenders. They might not be 100% honest when it comes to which expenses they need to cover with the business loan, how much money they actually need, what kind of expenses they will have in the foreseeable future, etc.

At United Capital Source, we don’t expect your finances to be in perfect shape. Things get more expensive, revenue fluctuates, business partners come and go. But that doesn’t mean you aren’t capable of paying back a small business loan without trouble. You just have to let us know about any financial curveballs that you are prone to or are currently dealing with. As long as your business is alive and well, we will most likely be able to structure your terms to work around a predictably rocky future.

3. Take Time Away From Improving Cash Flow

As an alternative business financing company, our requirements are much looser than most other business lenders. We do not require myriad financial documents that must be audited by an accountant. You do not have to provide collateral, a personal guarantee in most cases, or a credit score above 700. Potential borrowers from less-conventional industries don’t have to worry about less-conventional (and less convenient) terms. The main reason we removed these obstacles is because they take time away from actually getting your business ready to repay debt.

Instead of compiling documents and mulling over several years worth of revenue, we’d prefer you spend this time cutting expenses, building business credit, or doing whatever you can to improve cash flow. You might want to re-examine your most important business partnerships or the benefits of outsourcing instead of hiring full-time. As you can imagine, paying off debt is infinitely easier when you are sure you aren’t spending more money than you should at this stage of the game.

Anyone Can Master Debt Financing

Removing these three obstacles ultimately allows you to focus more on your business than impressing your business lender. And instead of waiting years for your business to meet demanding requirements, you can learn to master debt financing early on. Advantageous terms are no longer only accessible to well-established businesses with everything in order. Anyone with a thriving business can now learn how to pay off a small business loan.

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