In addition to funding significant investments, companies sometimes use small business loans to stabilize their budget, pay off other debts, and give their fiscal future a sense of predictability. They end up with more money in their pockets than they would normally have during certain particularly crucial periods of the year. In other words, their businesses remain healthy and vital for longer stretches than their competitors. This is a massive advantage because without a steady stream of funding, it’s extremely difficult for a business to maintain the principles that brought them success in the first place.
Here are 4 highly rewarding business practices you don’t have to shy away from with the help of small business loans:
1. MAKING PROMISES YOU CAN KEEP
Businesses lose their ability to keep the promises they make to customers and clients when revenue or operational funding becomes increasingly limited. They are no longer able to pay their vendors or suppliers on time, complete their services within their advertised time frame, or simply have a new product available when demand is at its highest. This is a surefire recipe for damaging partnerships as well as customer retention. Successful businesses got where they are today by establishing a reliable and trustworthy reputation with every single person or entity they do business with.
Bank loans tend to carry generic, non-negotiable terms but United Capital Source’s unsecured business loans can be customized to work around the preferences of your business partners or customers. Our working capital loans, merchant cash advances, and accounts receivable loans are just a few business funding programs UCS borrowers use to pay their vendors ahead of due dates in exchange for discounts, finish unusually large projects within their usual time frame, or keep important accounts that don’t always pay on time.
2. SETTING APPROPRIATE RATES
The saying “beggars can’t be choosers” often applies to businesses that are short on cash. When you need business as soon as possible, you can’t set your own rates. You have to bend to the demands of customers or clients who want you to abide by their rules, which could very well include unfair rates that don’t give you enough money to keep funding your operation. It won’t be long, however, until you find out that such business partners aren’t interested in a long-term relationship. They’ll dump you as soon as they find someone else who can offer them even cheaper rates.
There are two solutions to this problem. The first is never being so desperate you are willing to do business with practically anyone, while the second is establishing a reputation throughout your industry. Two of the many business funding programs that can provide either solution are accounts receivable loans and merchant cash advances. Accounts receivable factoring allows you to be paid up front as soon as an invoice is processed and therefore pursue accounts that understand the value of your services. A merchant cash advance is a lump sum today that is paid back over time when you make sales, meaning you can charge the same rates and fund regular business expenses even when sales are down.
3. COMPENSATING YOUR TEAM
A common and understandable reason business owners are hesitant about growth is that it might jeopardize their ability to compensate their workers. And by “compensate,” we’re not just talking about paying them. A loyal team is essential for success, but team members don’t become loyal from two paychecks a month. A great business owner goes above and beyond for his or her team. Their needs for new equipment, better working conditions, and rewards for excessively stressful periods must be met. When the time comes to give raises or promotions, they might seek greener pastures if you don’t show how much you value their hard work.
United Capital Source can help you find and keep your best workers. With our working capital loans, you can give new hires plenty of time to acclimate themselves rather than immediately pressuring them to bring in more revenue. You could use small business loans to fund a large project and give your team some time to rest once it is completed. Working capital loans are also highly advantageous for businesses that experience lengthy slow periods but still wish to keep the same amount of workers satisfied and on staff all throughout the year.
4. LEARNING FROM YOUR MISTAKES
Ask any successful business owner how they got where they are today, and we’re willing to bet a great deal of them will recall failures or mistakes. Rather than letting the past inhibit their future, they learned from previous problems to become more financially responsible. Banks make it very difficult to do this by penalizing applicants with poor credit or other outstanding debts. United Capital Source, on the other hand, does the exact opposite. We have repeatedly found that bad credit or unpaid debts are in no way a notion of an irresponsible business owner. This is why we offer bad credit business loans to applicants looking to quickly raise their credit scores, pay off other forms of debt or receive lenient terms that lack due dates or fixed, monthly payments.
At UCS, we judge our applicants almost exclusively on the performance of their businesses. Issues with credit or personal debts will likely not impact your application nor the level of customer service we provide compared to other clients. Funding will still be distributed in just a few business days, and you will have access to multiple business funding programs. This is your chance to prove that previous mistakes have only made you a better business owner, something we have proven time and time again.