It’s safe to say that the poor reputation of traditional business financing is largely attributed to the tedious and lengthy the process of applying for and receiving funding. Prior to the emergence of alternative business financing, small business owners would have to fill out mountains of paperwork and wait three to four months just to hear whether or not they were approved.
When it came to distributing funding, it didn’t matter if the desired investment was time sensitive or crucial for the business’s survival in the immediate future. Funding would not be there when the applicant needed it, even if the he or she had spent over a decade building a relationship with the bank in question.
Any small business owner knows that there are numerous circumstances in which the need for a small business loan suddenly arises. At United Capital Source, we empathize with such situations because we started out as a tiny business just like so many of our clients.
Here are four reasons your small business deserves to receive additional funding almost immediately after it is needed:
1. Opportunities Don’t Come Knocking Forever
Staying competitive means taking advantage of opportunities to increase clientele in addition to revenue. Maintaining loyal customers is important as well, since they could just as easily take their business elsewhere if they discover you are no longer able to produce quality results in a timely manner. Turning away or disappointing willing customers is a risk no business owner wants to take.
Say, for example, your consulting firm has been approached by a new client requesting your most expensive initiative to date. An auto repair shop could be tasked with dozens of projects at once and be forced to spend 85% of its assets on ordering parts. Both businesses must begin their work within the week in order fulfill their customers’ expectations but without additional funding, they would not be able to simultaneously cover regular expenses like bills, rent, payroll, etc. Thanks to alternative business financing companies like United Capital Source, the two businesses would receiving funding in a matter of days and solidify the trust of their new or current customers.
2. Time Isn’t Always On Your Side
One of the most popular uses for small business loans is replacing broken equipment that is essential for the business’s products or services. As luck would have it, seemingly adequate equipment can break out of nowhere and at the worst times. A client of United Capital Source experienced this misfortune when the main freezer for his convenience store broke during the slow season, when sales are down but his overhead remains the same.
Businesses of this nature cannot afford to go more than a few days without working equipment and are sometimes so cash-strapped that they can barely cover day-to-day operations. Waiting for funding means allowing more expenses to pile up. United Capital Source quickly distributed funding to the store owner so he could replace the freezer and focus on preparing for the upcoming increase in business, which brings us to our next situation requiring immediate funding:
Seasonal businesses perform best during certain times of the year, like the summer or holidays. In order to capitalize on the busy season, they must make a series of investments in the previous season such as excessive inventory, new hires, or a marketing campaign advertising new releases or exclusive offers. These investments need to be taken care of as soon as possible in order to produce a favorable ROI. Inventory is less expensive if it is ordered in bulk well before the busy season, and new hires need to be properly trained to deal with the surge in business that will soon ensue. Research has shown that marketing campaigns are most effective when exposed to potential customers months before the marketed product or service is released.
If a seasonal business isn’t allotted ample time to prepare for the busy season, the performance it relies on to balance out cash flow for the year goes into jeopardy. United Capital Source is able to approve small business loans in 24-48 hours and therefore move on to the next step, which is helping the business owner figure out how much capital he or she needs for both the current and upcoming seasons.
4. Stress Kills
Business owners who constantly worry about money are unable to dedicate 100% of their focus to making sure their business is releasing quality products or services. Scrambling or waiting for cash gets in the way of their core responsibilities and erodes the enthusiasm that influenced them to start a business in the first place. Now, imagine having this problem while your business has numerous expensive projects to complete by a specific date. If only you could receive funding right away and free your mind to concentrate on these complex tasks.
Many UCS clients came to us because they wanted to eliminate their financial stress and minimize its impact on their work. Once they received funding, their projects or investments became infinitely easier to carry out. These business owners proved that being able to obtain additional funding as soon as they needed is a surefire recipe for a strong ROI.
We Know Just How Painful Waiting Can Be
At UCS, we establish long-term relationships with clients and taking a genuine interest in their goals. The bank might not care about your business but UCS does, and we show it by understanding your need for funding not just now but in the future as well. Whether you need a second small business loan or just financial advice, please know that our partnership doesn’t end when you pay off your debt. Just pick up the phone or send us an email, and your problems will be solved with the utmost punctuality!