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Why Small Business Loans = Accelerated Growth

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By Jared Weitz Posted Wednesday 11, 2017 In Small Business Tips, Small Business Loans

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Today’s growth-obsessed business world is both a blessing and a curse. The culture was born out of the the rapid growth of countless young companies, many of which seemed to be following a very similar formula as they expanded. By placing an excessive amount of focus on a select few tools and strengths, these companies were able to reach their goals much quicker than expected. Some of them were generous enough to share their secrets, giving every small business the chance to try their formula out for themselves.

The average business owner is realistic and right to assume to that when their largest competitors say “focusing on,” they really mean “investing.” Alternative business financing companies like United Capital Source exist because while hard-working small businesses might not have the means to invest in whatever they please, they certainly know how to carry out an investment and produce their desired returns.

Building The Foundation

Ask any thriving business to tell you what is primarily responsible for their success. The majority will have the same answer: their team. A dedicated and skillful team is the business’s backbone, and a lack thereof is usually the reason a business fails. But forming the perfect team is much more difficult than scrolling through a pile of resumes to see which candidate has the most experience. Knowledge is nowhere near as important as attitude; which comes with sharing the same ambitions and principles as the founders.

The only thing you need to find such individuals is time, and as the legendary saying goes, time is money. You must be able to run your business smoothly while simultaneously spending weeks or even months finding the right candidates. And after taking all this time to interview and train your new hires, you’ll have to increase payroll while revenue remains the same.

United Capital Source offers funding programs that are so flexible and innovative that they can nullify both dilemmas. Our working capital loans are designed to cover business expenses for short periods without demanding significant payments until new hires are ready to contribute to your revenue stream. With a merchant cash advance, payments are directly linked to sales volume, regardless of how long it takes for revenue to increase. You would receive a lump sum to cover your increased payroll and expenses associated with your new team but not have to pay most of it back until your sales volume increases.

Both a working capital loan and merchant cash advance can also help fund your business while operations or sales are down. This is a common side effect of seasonality, or certain key employees having to forgo their usual responsibilities for interviews and training sessions.

Focusing On What Matters Most

Clients of United Capital Source are often shocked as to how much more work they can get done when they aren’t constantly fighting the dollar. Not only do they now have the funding to develop their products or services, but the brunt of their debt doesn’t have to be paid back immediately after funding is distributed. Successful companies wouldn’t have gotten where they are today if they had to skimp on vital investments in order to pay their bills at the end of the month.

This problem can arise from a variety of circumstances. Maybe you have to invest in preparing for the busy season during slow season. You might have to buy new equipment for a game-changing project that would eat up 75% of operational funding. Or, in the case of numerous retailers, medical practices or wholesalers, not be paid in full for as much as 90 days. But with accounts receivable factoring from United Capital Source, you would be paid up front for your services and create a steady stream of cash flow. You lose a small percentage of revenue but with so much more money in the bank, you would gain the means to service more accounts, order in bulk, and offer convenient terms to court future business partners. Accounts receivable factoring ultimately removes the burden of uncertainty, allowing you to schedule out your budget throughout the year.

Regardless of the business funding program that is recommended for you, all of our small business loans are crafted to make the repayment process stress-free so you can devote 100% of your concentration towards what you do best: running your business.

Keeping You (And Only You) In Charge

The alternative to debt financing is equity financing, which seems like a better option at first because you don’t have to pay anyone back. But it’s hard to enjoy this perk when your business doesn’t exactly feel like “your business” anymore. Equity financing turns you into a part owner who now has to comprise with investors when it comes to business decisions. And these investors tend to prioritize drawing a profit as quickly as possible, as opposed to positioning your business for long-term growth.

At United Capital Source, our goal is literally the complete opposite. Rather than forcing you to compromise your ambitions, we customize our working capital loans, merchant cash advances, and accounts receivable factoring programs to get exactly what you need, when you need it. Investors might hold you responsible for earning a certain amount of revenue by a specific date but we assign terms that account for inevitable, cyclical dips in revenue. Our relationship with you doesn’t end with your last payment because by that time, your cash flow and budget will be in such great shape that even more options for growth will open up to you. 

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