December is not only a time when holiday decorations are being hung on trees and doors at home. At work, businesses are reviewing their profit & loss and income statements. It’s a good problem to have yet many business owners across America will be shocked by the amount of tax to be paid in April (or October, if an extension is applied for by your accountant). Here are some tips that can help you reduce taxes due for the current year.
What Last Minute Business Expenses Can Reduce Tax?
Business owners always ask “What last minute expenses can the business incur to reduce taxable income?” The answer may not appear obvious at first, yet taking out a small business loan is a common strategy used by business to reduce taxable income.
It may appear less obvious yet sometimes in business, it is necessary to spend money to save money. With December 31 only 2 weeks away, there is still time to apply for a business loan, have the application approved, receive the funds and complete legitimate business purchases and be eligible to claim these as expenses within the current financial calendar year.
Traditional lenders, such as banks and credit unions, can take months to process business loan applications. United Capital Source can help you complete your application and have an answer within 1 to 2 business days.
The Most Common Last Minute Business Expenses Are…
Our Executive Vice President Jon Baum, recently addressed a group of small businesses at a workshop held in our New York office noting that the most common use of small business loans underwritten in November and December each year are used for purchasing inventory.
Loans from as low as $5,000 up to $500,000 can be secured in 3 to 5 business days. This allows your business to acquire end of year sale inventory. Retailers buying wholesale product can benefit from year end sales and clearance events. Wholesalers buying from manufacturers are able to increase the order quantity and pay a proportion up front for greater discounts.
Clients Examples Of Last Minute Inventory Purchases
In December 2015, one of our clients received a $40,000 business loan to purchase furniture from China. They took advantage of the strong US dollar Vs Chinese Yuan exchange rate. Providing this equipment furniture wholesaler with additional funding has allowed our client to act wisely in business to extend their range of 2016 furniture while paying for the furniture in advance at beneficial exchange rates.
In November, an upstate New York liquor store chain was able to stock an exclusive range of scotch whisky and specialty cigars following a $15,000 business loan, taking advantage of a special promotion being offered by an international liquor distributor who had surplus stock in their warehouses.
On December 3, an existing United Capital Source customer took out another 6 month small business loan for $20,000. They were able to purchase an excess number of Christmas trees that were on discount. This allowed for a larger Christmas sale promotion to be launched.
How to Apply for Business Funding?
Your application process will go a lot faster if you grab these documents ahead of time. Here’s what you’ll need to apply:
- Driver’s license
- Voided business check
- 3 Months Bank statements
- United Capital Source 1 Page Application
We Help With Reducing Taxes & Operating Tax Efficiently
At UCS we provide more than just the business funding to reduce your taxes. We also provide knowledge and insights on how businesses can operate more tax efficiently.
Online business funding platforms promise faster application processing. UCS offers that, and the consultative approach which adds high value to our business clients. Our experienced team listens to your business objectives and asks intelligent questions. We discuss your monthly cash flows as well as bank deposits. We like to gather info to understand your business growth trajectory.
The phone call is very friendly, non intrusive and completely complimentary. Our consultative approach provides business owners with the opportunity to think clearly about funding their businesses. We understand that there’s a lot of pressure when it comes to running your business. We know it can be very difficult to find time and apply for a business loan. Our team will dedicate time to think about how to lower your taxable income. We can also help you acquire a competitive advantage in buying inventory before the end of the calendar year.