There’s one fact of business that no small business owner can deny: Money is essential to stay operational. For business leaders who may be short on funds or in need of money to help invest in future growth for their company, a small business loan can provide the cash needed to get ahead.
Many business owners are surprised to learn that an alternative lender can provide a fast and easy way to apply for a loan and get the funds they need. Especially when you require funds you don’t currently have, this is an option many business owners find incredibly helpful.
It’s important to know when and why to consider an alternative lender for your small business loan. Here are some situations when a loan could offer great benefits to your business:
Your business is growing fast and you need a small business loan to get ahead of it
Congratulations! Every business owner dreams of having a steady customer base. And, it’s even better to see an influx of new customers coming to you. Hearing the bell ring every time your door opens is the sound of new business walking in, and any leader in a small company can certainly appreciate this.
At the same time, every business, regardless of size, has a limit to its capacity. There are only so many people you can serve at one time, and only so much inventory you can stock on your shelves. You may need extra funds – and quickly – to keep up with the demand. If customers are coming to you faster than you can keep up with them, it may be time to expand your business. Perhaps you need to physically enlarge your retail or office location, or maybe you need to hire a few new employees or lease another piece of equipment.
Whatever expansion looks like to your business, an alternative lender can help get you the money you need quickly and often with minimal paperwork. With just one phone call, you can explain to the lender what you hope to achieve with the funds and show them your company’s track record for success. The lender will review your plans and discuss your goals with you to determine what type and size loan would best suit your needs.
You need to build business credit
Most consumers understand that their credit score is an important figure when applying for a new credit card or loan. Business owners would do well to understand that this applies to their companies as well. However, if you’ve neglected your business credit score (or don’t know your business’s current credit score), it may be challenging to obtain the financing you need.
If you are planning to take out a large or long-term loan in the future, it’s important to have good business credit. Taking even small steps to build your credit sooner than later can serve you well for your future business growth. Entrepreneur contributor Jared Hecht wrote in a November 2015 article that taking out a smaller loan, using it responsibly and paying it off as planned can help you boost your credit and show your lender that you can be trusted with larger sums.
Your busy season is almost here
Does your business have a recurring period of time that brings in the most customers? Most businesses do. For example, tax accountants might have relatively quiet offices until mid-March when the rush to complete taxes sets in. Understanding when your busiest weeks are and knowing how to prepare for them are critical to making the most of your peak season. Or, your sales pattern may be hard to predict or impacted by external factors such as weather or new competitors.
Regardless of your situation, a key aspect of being ready is making sure you have enough employees prepared to tackle the work, enough equipment to get the jobs done and/or enough inventory or supplies to satisfy eager shoppers and customers. A small business loan may be your best answer to getting ready. The additional funds can help you stock up on inventory or hire a few seasonal or temporary employees as the needs arise. And, the increased revenue brought in by the uptake in business can help pay down the loan.
Do any of these three situations sound familiar to you? If you have a need for a small business loan or have a question, there’s no obligation when you reach out to National Funding and learn more.