Sometimes, the need for a small business loan isn’t as obvious as a broken piece of equipment or a cramped office. Most small business owners are so used to stress, mishaps and financial constraints that they fail to realize that the only effective solution to certain problems is additional funding. This is a very important realization. It means their business is ready to grow and prove that it has the foundation to pay off debt.
The need for additional funding, however, can come in many forms. In most cases, it comes down to your business lacking an essential tool for satisfying a new level of demand. Your business has likely had this problem for a long time but can no longer bear it now that it has earned the right to take on the largest competitors in the game.
Here are four signs your small business could use a loan:
1. You Don’t Have Time To Grow Your Business
Time is among the most vital sources of revenue a loan can buy because it is directly linked to focus. The more available time to you have, the more focus you can dedicate to lucrative investments. Running a business already comes with endless responsibilities but unless you want to remain stagnant or lose your competitive edge, you must devote substantial time to initiatives that will push your business forward. Operations might slow down by a slight margin when you devote attention to efforts like taking on new hires or marketing campaigns. With a loan, this slowdown wouldn’t force you to dig into operational or personal funding to pay your bills or employees at the end of the month.
If you have no time to concentrate on anything but running your business, an alternative lender will help you reap the rewards of all your hard work.
2. Your Team Doesn’t Know Anything About The Problems At Hand
Competing with the giants of your industry means tackling every element of running a successful business. If only it was possible for your team to be experts in every single one of these elements. Odds are, you are going to run into several problems or essential tools for success that are completely unfamiliar to you and your team. Ignoring them could deprive you of the professionalism, organization, and opportunities for growth that your competitors thrive on. Examples might include digital marketing, bookkeeping, social media, graphic design, or even customer service.
These are responsibilities that need to be taken care of on a daily basis and therefore require a full-time employee. You might be able to afford one more full-time employee on your current budget but as luck would have it, these problems come in pairs (bookkeeping and customer service, social media and graphic design). Alternative lenders like United Capital Source offer numerous funding programs tailored for taking on multiple new hires, even when sales are down. You would be granted ample time to find and train the right candidates, who would then settle into their roles and posit your business to handle an upcoming jump in demand.
3. Unusually Rough Slow Season
Virtually every industry on the planet is seasonal, meaning they experience significant increases and decreases in revenue during certain times of the year. They have a busy season, like the summer or holidays, which comes after the slow season. Yo ensure a successful busy season, investments must be made months ahead of time such as marketing campaigns, recruitment of new hires, and the ordering of excessive inventory. But some slow seasons are so devastating that you can barely pay your bills, let alone cover an investment. The rewards of a strong busy season are simply too good to pass up, especially if this busy season involves a hot, new product.
Alternative business lenders have helped countless businesses survive brutal slow seasons and perform far beyond expectation when the busy season arrives. A great deal of these businesses accomplished this via a Merchant Cash Advance, a funding program that supplies capital in exchange for the right to purchase a percentage of your future credit card sales. There are no due dates or fixed, monthly payments, and repayment happens as your credit card transactions happen. With this program, you could cover investments and run your business during the slow season and hold off the majority of the repayment until credit card sales pick up.
4. Everyone Is Always Tired
You can only go so far with a team that is constantly exhausted. Their fatigue could stem from a variety of reasons. Maybe your team members have too much on their plates and are stretching far beyond their job descriptions to complete their weekly goals. Maybe your office is located so far from your employees’ homes that they need about an hour every morning to “recover” from their strenuous commutes. If your team is already so tired, what will they do when demand begins to increase? This outcome is basically inevitable, and you can prepare to take full advantage of it by applying for a small business loan.
Applying for a bank loan involves waiting several months to learn whether or not you’ve been approved and even longer to receive funding. Alternative lenders, on the other hand, can approve funding in under 24 hours and distribute funds in a matter of days. You could find your new hires or put a down payment on that new space the moment the opportunity presents itself. This will ensure that your employees gain all the energy they need to take your business to new heights in the near future.
Don’t Let These Go Ignored
Failing to solve these problems as soon as possible puts you in danger of falling behind your evolving industry. Your business must literally possess every tool required for staying competitive, and this includes the capacity to put forth 100% effort at all times. United Capital Source will help you ensure that none of your business’s potential goes to waste by leveling the playing field in your favor!