Back to Blog Feed

We will help you grow your small business.

Learn More

Join our Newsletter for great tips and updates.

Owning a business is naturally embedded with risk but there are certain risks business owners can avoid if they take the time to examine every option available to them. Doing this would reveal that one business’s risk is another business’s opportunity to take a major leap forward.

Financial limitations are bound to arise, forcing business owners to decide how they will come up with additional funding in order to stay competitive. Unfortunately, it seems that the two most popular choices are to either apply for a bank loan or simply accept that your business is simply unable to take on potentially game-changing investments.

Both options are rife with gloom but alternative business financing companies are here to spare you from unnecessary harm. Here are five risks small business owners no longer have to worry about thanks to the existence of flexible small business loans:

1. LOSING YOUR CAR OR HOME

Any small business loan distributed by a bank requires collateral, or something you own that the bank can sell should you fail to pay off the debt. Your collateral must be of equal or similar value to the loan itself, which is why it usually comes in the form of property, a car, inventory, or equipment. As if taking out a business loan wasn’t stressful enough. It’s not difficult to imagine how much more stressful it is to run and grow a business with 100% of your attention when your business and well-being are on the line.

Alternative business financing companies like United Capital Source, on the other hand, do not require collateral, and their loan terms are customized based on the unique circumstances of your industry. Collateral is supposed to be a notion of dependability, so you would think the bank would at least offer flexible terms for borrowers willing to risk their car or home. This is not the case, as terms for bank loans are generic and non-negotiable. The business financing experts at UCS understand that collateral is far form the best way to make a borrower more likely to pay off a loan. The key is a more progressive funding program that is tied to business performance, since any responsible business owner can pay off a loan with the right terms.

2. FALLING BEHIND THE TIMES

Consumer demands have changed for nearly every industry on the planet. Businesses must offer different kinds and amounts of products/services while creating an extensive online presence now that so many people are using the Internet to determine what to buy. Not every business can afford to make these changes, putting them at risk of appearing outdated and losing a great deal of business. Banks won’t be much help considering their notoriously low approval rating for business loans and the fact that you’d have to somehow make fixed payments long before your investment pays off.

The perfect funding programs for such investments are Merchant Cash Advances, which gets your business a lump sum today in exchange for a percentage of future credit card sales. You can hire a digital marketing team or order whatever inventory you need because the program does not involve monthly payments or due dates that might hurt your cash flow. Because repayment is tied to a set percentage of future sales, the majority of the merchant advance would be paid back when sales are up. Good payment history might also make you eligible for a second funding program with better terms. So if you need to make another investment to fully adapt to the times, you will likely receive funding not long after paying off your initial debt.

3. NOT CAPITALIZING ON THE BUSY SEASON

Many industries are seasonal, meaning they conduct the most sales during a specific time of the year, like the summer or holiday season. The busy season is their chance to perform well enough to finance future investments that could propel them to unprecedented heights. They must order excessive inventory, take on more hires, and launch marketing campaigns to advertise exclusive offers. But as luck would have it, the busy season follows the slow season, when sales are down. Businesses suffering through the slow season have enough trouble covering rent and payroll and could not fathom having to make monthly loan payments as well.

Big chains would hog all the business that is up for grabs during the busy season if it wasn’t for alternative business financing companies, which have more lenient requirements for approving small business loans, particularly financing against future credit card sales. This program allows you to prepare for the busy season as early as possible, maximizing the potential for an incredible performance.

4. RUINING YOUR CREDIT SCORE

If you take out a small business loan from a bank, you must begin making fixed, monthly payments immediately after funds are supplied. The bank doesn’t care that there’s nothing you can do to prevent cyclical inconsistencies in revenue. The bank doesn’t care that you might have to dig into personal or operational funding to make payments, putting the survival of your business in jeopardy. So, what happens if you miss a payment?

Missing just one payment on a bank loan will absolutely ruin your credit score. Companies like UCS have business loans for bad credit that don’t require a high credit score unless you’re asking for a very high large amount of money, which you might need in the case of an emergency or once-in-a-lifetime investment opportunity. A low credit score also makes it difficult to be approved for real estate, and the addition of property is vital for industries like fast food. Funding programs from alternative business financing companies are arranged for payments to be made with ease, regardless of how much it costs to run your business.

5. MISSING OUT ON YOUR TICKET TO THE BIG LEAGUES

A business’s big break typically comes in the form of a new project or item that has the potential to generate massive amounts of revenue. These opportunities, however, are expensive investments that require more than enough money to inhibit day-to-day operations. Say, for example, your auto repair shop needs to order tens of thousands in new parts for a highly-lucrative job. Maybe your franchise has found an opening on a property in the perfect location for your target audience. You need cash now, or else a larger competitor will take the project or real estate.

Alternative business loans are extremely useful for these situations because funding will reach your bank account in just a few business days. You’ll be able to order those parts so you can quickly get started on that project and secure your new property with a down payment.

Is your business facing one of these risks, despite the success you have rightfully earned? Call 855.933.8638 or visit the United Capital Source website. The business funding experts at UCS will quickly assure you that there is a program that will grant you the means to evolve with little if any impact on cash flow! 

We will help you grow
your small business.

Get Started

Leave a Reply