Top 5 Errors In Completing Business Loan Applications
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There’s no other way to say it: If you own a small business, worrying is a big part of the job. It’s only natural for small business owners to be constantly concerned about their financial health and the future of their industries. This is largely because there are so many things that could sink a promising small business. So much can go wrong at any given moment. You might have heard a few entrepreneurs say that the most sensible response to this concern is to not worry at all, but this mentality is arguably more likely to lead to your demise. The real answer is to be prepared, and that’s a lot easier thanks to companies like United Capital Source.

Preparing for the immediate or not-so-distant future is undoubtedly a worthy investment. As your business grows, you will have to prepare for at least one of several scenarios that may require the help of a small business loan. You can figure out the most probable scenario by asking yourself a series of questions related to the current state of your business.

1. What If It All Works Out?

Growth can be a blessing or a curse. Those who encounter the latter outcome, however, tend to have one thing in common: They were not prepared for the event of everything going right. The primary goal of business growth is usually to increase demand and productivity. A small business that conducts approximately 30 sales a day must consider what they would do if that number suddenly jumped to 130. Let’s be honest: 100 customers would likely be very disappointed and take their business somewhere else. So, what resources do you need that could prevent this from happening.

Maybe you need a new sales system, a bigger team, or more advanced equipment. Maybe you need a new website that would act as a first point of contact for new or potential customers. You might just need more time in the day to focus exclusively on sales, as opposed to other day-to-day tasks. Either way, your answer will give you a better idea of the type of small business loan you should pursue. Different unsecured business loans are designed for different investments, based on factors like how long it will take for the investment to contribute to your revenue stream, how much money you’ll need throughout a specific time frame, and other expenses that could accrue as you make more sales.

2. What Tool Will Wreck My Business If It Is Destroyed?

An essential skill of a successful business owner is being able to discern what will do a lot of damage to your business from what will do only minor damage at best. Think of your business as if it was a machine. Each component has its own value. If a certain component breaks, the machine might run a little slower but produce the same results. Another component, on the other hand, could be like the engine to a car. A successful business owner can discern the doors from the engine, even though every business has a different engine.

For some businesses, the engine could be their two most valuable employees. Others might be able to sustain themselves in the event of a top employee quitting but would be in serious trouble if their biggest client is forced to close its doors or seek greener pastures. You might very well conclude that you, the business owner, are the engine. What happens if you become too stressed to concentrate or your time is compromised? The main point of this exercise is to determine which component of your business you might need to invest in as you grow. Your answer will show you whether a working capital loan, business line of credit, merchant cash advance, or other type of small business loans are the most effective tool for keeping your engine running.

3. Have I Spoken To My Customers?

Lots of businesses don’t know what to change or what they do well until they talk to their customers. Constant communication with your customers can be stressful because no one wants to hear negative things. They like to assume that as long as no one is complaining, they must be doing everything perfectly. But this isn’t always the case, especially with service-based businesses. A client won’t say anything for months and then, out of nowhere, they leave. You have to get ready to hear the truth and talk to your customers about what they like and dislike about your products or services.

Talking to your customers will likely give you a better idea of what you need to do to grow or sustain growth. It might be uncomfortable to hear but there’s a good chance you’ll find out that your customers only like, not love, your business.

4. Fast And Easy, No Matter What

United Capital Source is far from the only source of business funding but unlike your bank, the process of obtaining our small business loans is fast and easy. No matter which type of small business loan you choose, you can begin preparing for growth just a few business days after your application is processed. There’s no paperwork or lengthy screening procedures to stifle your momentum. You will only reap the benefits of preparation if you can start at the right time, and only UCS can give you the small business loans that let you make your investment when it makes the most sense for you, even if your industry’s financial cycle says otherwise.

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