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It’s not hard to see how terrified small business owners are of debt. They often complain that they can’t find the workers or the capital to properly serve their customers, yet they refuse to pursue additional business funding. It’s as if they’ve never heard of small business loans. The truth is, they have heard of it, but are so fearful of debt that they don’t even bother exploring their many options for debt financing.

You can’t blame them. Interest and principal repayments can damage profit margins, and the financial crisis has left scars that have only recently begun to heal. But despite the negative reputation of debt, it’s important for business owners to remember that additional funding is necessary for growth and, like so many other things in life, should not be written off solely because it seems a little expensive.


Got an idea you think your customers will love? Without a small business loan, business line of credit, or merchant cash advance, it’s going to be pretty difficult to get that idea off the ground anytime soon. Small business funding from companies like United Capital Source lets you get to work when new ideas are fresh in your mind. If you are thinking of using equity financing instead, you may have forgotten that investors will need to see a proof of concept before they give you any money.

United Capital Source has helped hundreds of businesses increase their customer base and maximize profits by offering new products or services. These businesses came from dozens of industries, so we know what works and what doesn’t for a certain demographic. Banks require you to fill out mountains of paperwork, possess a perfect credit score, and wait months just to learn you’ve been rejected. But at United Capital Source, we just need to examine a minimal collection of financial documents before giving you an answer just one or two days later. As long as we can determine that your business is alive and well, poor credit history or the size of your business won’t stop us from trusting you to repay debt.


The alternative to debt financing is equity financing, which comes with a downside that greatly surpasses not having to pay anything back. When you raise capital from investors, those investors now have ownership interests in your business. They have a say in which employees you hire or let go, as well as which other businesses you form partnerships with. Investors typically couldn’t care less about long-term goals and would rather focus on getting rich as quickly as possible.

At United Capital Source, our number one priority is seeing your company grow, not drawing a profit. This is evident in the terms of some of our unsecured business loans, such as a merchant cash advance or bad credit business loans. These funding programs typically do not carry due dates, fixed monthly payments, or any other stringent, non-negotiable terms that cannot be adjusted according to the inevitable circumstances of your industry. We offer SBA loans with very low interest rates, and with a merchant cash advance, your repayment is tied directly to sales volume, which helps predict cash flow.


Let’s say you and your competitor are generating approximately the same amount of profit. You have financed yourself with a small business loan whereas your competitor has used investors. Depending on the type of business funding program you took out, your business would theoretically generate higher profitability figures than your competitor’s. This is because unlike payments made to investors, business interest payments are tax deductible. Many UCS clients use accounts receivable factoring or credit card processing loans with profitability margins in mind, because the longer you let invoices or other forms of debt go unpaid, the more it limits your ability to grow.


Anyone who says that debt financing is always more expensive than equity financing has not considered the incomparable long-term benefits of working with a company like United Capital Source. Even if you have poor credit, our business funding programs are specifically designed to achieve your projected ROI and position you to grow even further once the debt has been paid back in full. Having more capital at your disposal at the right time also creates more opportunities to save money and increase productivity.

With accounts receivable factoring, for example, you lose a tiny bit of revenue in exchange for being paid up front for your services that would usually go unpaid for around three months. This money could be used to hire more salespeople or pay your vendors so far ahead of time that they reward you with discounts. And now that you don’t have to worry about late payments damaging cash flow, you could offer convenient terms while courting larger accounts. New UCS clients are constantly surprised by how much more productive they can be when they don’t have to dig into dwindling operational funding to pay their bills and employees.


While debt can undoubtedly hurt a business if it is managed incorrectly, ask yourself this question: Would United Capital Source be where it is today if our team didn’t know how to manage debt? A big reason our clients continue to work with us is our promise to walk you through every step of your investment, even if this involves talking on the phone on a constant basis. We know what kind of budget, funding terms, and cash flow your business needs to remain competitive all throughout the year. Let us prove to you that it is indeed possible to pay off debt without damaging your financial health!

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