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After breezing through a series of online, business-related articles, you’ve noticed a trend. Most of the articles are about evaluating the current state of your business and/or thinking about the future. Each one brings up one more thing that is yet to cross your mind: business insurance, taxes, the likelihood of having to raise prices. Another widespread concern seems to be the eventual need for additional business funding. Businesses are often suggested to begin looking into small business loans well before they are actually necessary, which is usually a good idea. But then you realize just how many different types of business lenders there are in 2018.

Some clients of certain business lenders report positive experiences; others report the opposite. Eventually, you conclude that just like any other business-related endeavor, your decision will be based on advantages and disadvantages beyond what’s on paper.

1. Not just for major investments

Small business loans are traditionally only used for relatively large investments or to recover from a massive crisis. They should only be pursued if you are 100% sure that there’s no other solution. Banks typically do not approve smaller business loans because they yield smaller profits, at least early on. The SBA does have a micro-loan program but in addition to flawless credit, you will most likely have to put up collateral. This explains the “last resort” stigma that surrounded small business loans up until fairly recently, when disruptive companies like United Capital Source entered the scene.

We have no issue in distributing smaller amounts, partially because we believe younger businesses should learn how to take on and pay off debt as soon as possible. For many UCS clients, their first business loan was on the smaller side to prevent their inexperience with debt financing from pushing them towards bankruptcy. When they needed a larger business loan later on, they had plenty of experience and therefore presented less of a risk to the business lender. You shouldn’t have to raise prices on all of your items, reduce staff, or dig into personal funding to fulfill your obligations. Today, it is perfectly acceptable to use a small business loan for almost anything as long as your business is raking in steady revenue and working to improve cash flow.

2. We factor your vendors/suppliers into the equation

Business owners are frequently urged to pay more attention to cash flow than profits. This is because there are several ways in which an otherwise profitable business can have cash flow problems. One of the most popular is their relationships with vendors or customers they sell to. Maybe you pay your vendors before you pay yourself. Maybe you extend too much credit to your customers. Maybe your orders just don’t arrive at a time that is convenient for your finances. Simply giving you more money won’t fix this. You need to establish a more cost-effective system as well, one that is clearly and equally beneficial for you and your customers.

Banks and online lenders (Kabbage, PayPal) won’t be much help when it comes to new strategies or any business-related advice whatsoever. But at United Capital Source, our success depends on the long-term growth of our clients. In the case of our retail and restaurant clients, the long-term goal often involves arranging better terms with their business partners. Working capital loans, business lines of credit, and accounts receivable factoring can give you more negotiating power, shorten your business cycle, or allow you to make payments or place orders at intervals prioritize profits. The third business funding program is sometimes used to score a deal with a bigger, more reputable partner and leave the less reliable or less professional ones behind.

3. Business loans and business credit from one place

If a small business loan will likely be in your future, you may have been told to sow the seeds by strengthening your relationship with your bank. This could involve using other banking services (that cost money) or getting on good terms with someone in the bank’s business department. You might have also been told to look into another business credit card in the event of an unforeseen emergency. But business credit cards with the best perks for your industry are not easy to qualify for, not to mention incredibly expensive. You have to make payments even if you haven’t borrowed any money throughout that month, and most business credit cards don’t let you take out large cash advances on your borrowing limit, at least not without a decent fee.

Working with United Capital Source lets you kill both birds (loans + credit) with one stone. In addition to traditional business loans, we offer business lines of credit for clients who can’t afford to take on another business credit card. Unless you have your eye on a specific, highly advantageous perk, business lines of credit are typically cheaper and easier to pay back. And our business loans are not just available to borrowers who use multiple services or make small talk. We appreciate preparation for needing more cash than you have on hand. The difference between UCS and other business lenders it that the preparation for our business loans is actually necessary.

4. No numbers will go unexplained

As a retail business owner, you’re probably used to customers or employees questioning your prices. Sometimes, the only way to quell these complaints is to explain the origin of your pricing system. We apply the same concept to our clients at United Capital Source. If you are skeptical of your rates, borrowing limit or terms, we are more than happy to explain how we arrived at those numbers.

Your bank won’t even tell you why they rejected your business loan application. UCS, on other hand, can guarantee a level of transparency you’ve never seen from another business lender. Every part of your small business loan will be developed to make the most sense for your business’s current and future financial state.

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