Funding your small business is an ongoing endeavor. It’s never just one loan, just like it’s never just one bill.
Getting restaurant funding, law office funding, or contractor funding is a simple enough process. All you have to do is figure out your business credit score and ask the right questions. Not even sure about that part? It’s time to put your day-to-day duties on hold and consider reaching out to a loan professional. They can walk you through the process of asking for the right amount of money for the right work.
Loans are a useful tool that get you the support you need to thrive. Below are the top five facts you need to know in order to make an informed decision on your restaurant funding.
Cash Flow Problems Are Your Number One Issue As A Businessowner
You may be tempted to turn to digital marketing or better word-of-mouth to improve your business model. Turns out these worries are low on the list. It’s estimated 80% of today’s businesses fail as a result of cash flow problems, such as late payments or inconsistent customer activity. What makes a loan so useful is that it fills in the gap and puts you in a better spot to start making money. Paying off the loan, once all is said and done, becomes as easy as one, two, three.
Not All Business Loans Need To Be For A Large Amount
Think you need a massive amount for your loan application? Keep in mind what works for one business may not work for another. Most microbusinesses are able to get started on $3,000 or less, for starters, and more than half of all requested business loans are for under $100,000. Hash out your necessities and whittle down the number as much as you can. You’d much rather apply for a loan that’s a little too small than one that’s far too large.
Small Businesses Remain The Number One Stimulant Of The Economy
It’s thanks to America’s hardworking small businesses that we’re able to enjoy such prosperity. Small businesses account for over 95% of all businesses in the country, though not all of them achieve success. According to recent studies, just 40% of small businesses are profitable. As explored above, this is often due to cash flow problems rather than lackluster services or marketing woes. What could better restaurant funding or medical practice loans do for your bottom line?
Finance Knowledge Is A Hurdle That Should Be Cleared Early
A major hurdle in-between businessowners and success is first-hand knowledge. An illuminating survey revealed 60% of businessowners don’t feel knowledgeable about accounting or finance. This can lead to them paying too much in taxes, not paying enough and getting penalized…the list goes on! Alongside applying for a loan, consider reaching out to an accountant. They can walk you through the basics and help you get a feel for the lifeblood of your business.
Your Business Has A Separate Credit Score Than Your Personal Expenses
Last, but most certainly not least, there’s the issue of a good credit score. To qualify for a loan you need hard evidence that you’re going to be able to pay it off. According to a study, 45% of businessowners don’t even know they have a business credit score. Grab whatever information you do have and talk to a loan professional about getting your business credit score identified. The sooner you get it sorted out, the sooner you can get that vital restaurant funding.
From payroll funding to manufacturing loans, you have plenty of options to choose from. What sort of loan could help you achieve your goals over the next few years?