isyourbusinessreadyforaloan

Is your business ready for a loan?

by with No Comment Business TipsSmall business loanUncategorized

Is your business ready for a small business loan?

Is your business ready for a small business loan?

When considering applying for a small business loan you may be met with a wide range of reactions. You will see everything from praise, to a strongly written letter on why it will be the worst decision of your life. What you need to remember is that every business situation is different, and consider if a small business loan is the right choice for your business.

What are some reasons that this may be the wrong time to look for a small business loan?

1. Your business revenue has been dropping, with no sign of improving.

Probably the biggest reason for complaint depending on who you ask. If your business revenue has been dropping then maybe this isn’t the time to look for a loan. Having that access to working capital can greatly benefit a growing business, however in most cases it cannot turn around a drop in performance. Now this is not a strong and fast rule, with a good plan for that extra capital a business could grow, however access alone will not solve the underlying problems a business may be facing.

2. You do not have a good use for the extra capital.

Similar to the first point, extra capital alone will not improve your business. However having a plan for that money can push your business to a new level, whether it be physical expansion, new material, marketing, or hiring new talent.

3. You’re about to enter your businesses slow season.

Like the other two points this is not a steadfast rule. That extra working capital could help your business throughout the slow season, however a loan should help bring in more revenue for your business. Maybe you need extra equipment to take on big projects in the winter, or need to hire additions to your team to cover time off, there are plenty of ways a loan can help your business in a slow season.

There are plenty of reasons that a small business loan can help your business grow. Knowing when to take the risk of a small business loan can make or break your business. The reasons for a small business loan is endless, but here are a few examples of some great reasons.

1. You’re ready to take on bigger projects.

Have everything in place but need the extra capital to take on those bigger projects? A small business loan could be exactly what you need.

2. You’re team is growing and it’s time to expand.

Is the office becoming claustrophobic? Has sales become more of a mash pit than a team? Maybe it’s time to expand your location. This is a great time to consider a small business loan to expand, create a little extra space to bring on a few more people, or just give a little more breathing room for your employee’s to thrive.

3. Bringing on new talent.

Business is doing good, but it could be doing even better. Maybe bringing on that new talent to handle the books, run the social media, or bring some fresh marketing could do the trick. Consider a small business loan to bring on that powerhouse team member to push your business to the next level.

4. Purchasing New equipment.

Business is moving quick, projects are coming fast, and sometimes your equipment is what’s slowing you down. Purchasing new equipment can allow you to take on new projects, or just speed up current performance.

5. Purchasing inventory.

The catch 22 of business, you need to invest in inventory to operate, but need the inventory to offset the cost. You always need inventory on hand, and continuously restock to match demand, this can be even more difficult when working with seasonal or niche products. Working with a lender to offset that inventory cost can keep you ahead of the trend.

Now that you’ve considered whether or not your business is ready for a loan, it’s time to think about where to go. Banks are very selective with businesses to work with, and can come with a very lengthy and difficult qualification process. Online Capital works with lenders across the nation and brings the best offers straight to you, we offer plenty of loan types and offerings too. From working capital loans, SBA loans, and equipment leases Online Capital wants to help you grow your business every step of the way.

 

Small Business Loans

by with No Comment Small business loan

Running a small business is not easy.

When you start a small business there are always going to be problems that small business owners face in operating the business, the most common being raising capital. Raising capital for your small business is stressful especially in conditions where small business owner’s status is treated in a similar way to borrowers with poor credit. This is because of the unstable income generated from the small businesses and this makes banks and financial institutions reluctant to yield to demands of small business owners. However there are small business loans particularly designed with business owners in mind. The loan was devised by lenders who understod the struggles that small business owners face, and built to help small businesses grow and thrive.

Whats the difference?

Small business loans are advanced to small scale entrepreneurs who require capital for purposes such as purchasing tools and equipments for business,expansion of business facilities,buying raw materials and paying wages to workers or buying improved technology for business.Borrowers can repay the loan in installments agreed upon by the bank or financial institutions depending on the income they are able to raise in a that period.Small business loans that have a flexible repayment schedule can be the best solution for the self employed people and small business owners.A flexible repayment schedule means that payments are not necessarily made after the the specified period of time.There can be underpayments,over-payments or no payments made at all often referred to as payment holiday.

Small business loans are available in three forms:

Short term loans
intermediate loans
and long term loans.

Short term loans offer funding to new businesses, and can offer loans to businesses with low credit scores. Short term loans help solve financial problems for an immediate business solution, and a quick payback. Their term can range from 3 to 12 monthh.Intermediate loans are designed more for large financial expenses with a loan term of 1 to 3 years.Long term loans supply the initial cost required to set up a business and is repaid after the business is running smoothly.They have a loan term that extends from three to seven years while some can go for about twenty five years.Depending on ones requirements,small business loans repayment terms can be agreed upon between the lender and borrower.

While small business loans offer excellent benefits for small businesses they have drawbacks as well.
They include:
The usual requirement of collateral.
Hidden clauses and fee’s.
A long application and approval process.
Stacks of paperwork.
Very steep qualifications, high credit score, and business performance.

The solution?

Online Capital set out to improve on the small business loan process, striving to make capital more accessible and easier for business owners to acquire. We keep our requirements, and process transparent at all times, and provide experienced staff to assist you along the way. Whenever your business meets a financial bottleneck or you are in need of extra finances to run or expand your business don’t let small business loans scare you, it may be exactly what your business needs.

In need of a small business loan? contact us for a quote!