The primary objective for taking out small business loans is increasing revenue, but this is far from the only significant improvement you and your business will experience as you successfully pay off your debt. Taking out a small business loan will make you a more intelligent and battle-ready business owner, one who is poised for even more good fortune in the near future.
Each stage of the business loan process (Applying, Utilizing and Repaying) comes with at least one benefit that is not directly related to revenue. These benefits, or tools, make it significantly easier for you to achieve the next goal you have in mind.
BECOME AN EXPERT IN YOUR INDUSTRY
The first stage is extremely tedious and mind-numbing but it is worth every minute you spend staring at facts and figures. Applying for a small business loan requires you to conduct extensive research on your business and industry. When the time comes to speak to a lender, any claim you make about your business’s financial health, quarterly projections, and how much you need to borrow must be supported by evidence.
The application process also involves the development of at least a few financial documents such as a profit and loss statement, balance sheet, and cash flow statement. Compiling this research and paperwork will tell you how much money is going in and out of your company, how much money it is projected to make, and how your industry and company have evolved as of late. You’ll know exactly how much money you should ask for to cover an investment and have no extra cash left over.
The point of presenting a detailed knowledge of your business’s finances is to prove to the lender that you take your work seriously and will most likely pay off your debt without trouble. But before you impress your business lender, take a moment to think about how much you have learned about the state of your business and the achievements it is positioned to attain. The best business owners know their business and industry better than anyone in the world, and you can now count yourself among their ranks. Keeping all this research in mind will allow you to make sound business decisions with little hesitation, maintain firmer control over your finances and only make investments with minimal impact on cash flow.
ELIMINATE STRESS AND FEAR
A small business loan gives you the ability to run and grow your business at the same time. This refers to making a lucrative investment without having to dig into your operational funding. If you had to dig into your operational funding, even just a little, your company would be one step closer to not being able to cover monthly expenses like bills and payroll. The investment you have made is likely a major project that can only be done effectively with 100% of your concentration, which you won’t be able to supply if you are worried about the survival of your company.
Alternative business financing companies offer several funding programs that do not feature regular payments or due dates. A merchant cash advance, for example, provides funds today in exchange for a percentage of future credit card sales, so you don’t have to make fixed payments when sales are down. As sales occur, that fixed percentage of sales is deducted to repay the merchant advance.
Say goodbye to worrying about funding your business during a slow season or when you’re busy training new hires. You are less stressed and, therefore, more likely to execute this crucial project with perfection. A relaxed mind makes good decisions, works well under pressure, and comes with innovative strategies that pose an advantage over your weary competitors.
BOOST YOUR CREDIT SCORE
Establishing a good credit history proves that you are a responsible business owner , and the evidence is in your credit score. Just a few regular payments is usually all it takes to dramatically raise your credit score, putting you in line for more financing, quicker underwriting times and with better terms. A higher credit score will also help you secure additional office space with low insurance rates and qualify you for credit cards with incredible reward programs, some of which are used to host client dinners and make lengthy business trips free with the rewards you redeem.
YOUR BUSINESS IS READY AND SO ARE YOU
Your confidence should be sky-high after paying off debt thanks to your raised credit score and the fact that you were able to spot a worthy investment. You are in a far better position to accomplish long-term goals than you were before the funding, both on paper and in your head. No matter how much revenue your investment generated, it is nowhere near as valuable as the new characteristics you have acquired as your business takes this major step forward.
United Capital Source offers funding programs specialized for all types of businesses. If your business is ready for a growth spurt call 855.933.8638 or visit the UCS website. Our one-page application takes a minute to fill out, and funding could reach your bank account in a matter of days.