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Interested in applying for a business loan?

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Interested in applying for a business loan?

working financing

Working Financing


Running your own business can be exciting and highly beneficial in many ways, but there are many instances when you may feel a great deal of stress as well. Financial stress is common among business owners, and you may easily feel anxious when you have numerous bills that you cannot afford to pay, a slow accounts receivable pipeline, high unexpected expenses, opportunities to grow without funds available to do so and more. Finding longer or short term businesses solutions for financing is a necessity, and the good news is that there are a few available options to consider. By taking these easy steps, you can more easily obtain the working financing that your business’s needs and that is affordable for your budget.

Update Your Business Plan

Whether you are running women businesses or any other type of business, the most important first step to take before you actively seek financing for your business is to update your business plan. You initially created a business plan when you launched your startup, and this plan may have served as a guiding post for you as you proceeded through the first few months or years of operations. However, many business owners fail to update their plan and no longer use it.

A smart idea is to update your business plan to reflect your current business status and your financial need for working financing. This can help you to define your current need for capital, including how much money you actually need and how high of a loan payment you can comfortably afford to make. It can also help to guide your decisions in the near future when you have access to extra capital from your new loan.

Review Your Budget

Managing finances business can be challenging, and the last thing you want is to take out a new business loan that will generate a burdensome monthly payment. This can be detrimental and even devastating to your business. Take time to update your budget so that it reflects your current status, and think about any future financial needs, such as non-recurring expenses that you know you will have in the near future.

Use a loan calculator to estimate monthly loan payments using realistic terms. Plug a reasonable estimated monthly loan payment into your budget to ensure that the payment is affordable. If you do not believe that you will be able to repay the loan as agreed, now is the time to adjust your budget and financial needs so that they are in line with a loan amount that is more affordable for you.

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Think About Your Financial Need

Financial need is also critical to think about before applying for a loan. You should not borrow money through a business loan unless you can properly plan for each dollar that is being borrowed. The burden of debt on a business’s budget can be considerable.

Loan payments can prevent you from investing in future growth and development, so you want to keep loan payments as low as possible. However, not having access to the capital you need can also be detrimental. Take time to review your financial need so that you apply for the right loan amount for your needs.

Consider things like bills that need to be paid, areas of growth you want to focus on, how marketing can benefit your business growth plans and more. For each item, research the cost thoroughly so that you can properly account for it in your financial plan.


Examine Your Company’s Financial Strength

When you apply for a traditional small business loan, your business’s financial documents will be closely scrutinized. In some cases, your own personal finances may also be reviewed. Documents such as tax returns, pay stubs, bank statements, financial statements and more may be analyzed carefully for both you and your business.

More than that, your credit rating for the business and for you personally may be reviewed. Keep in mind that there are other loan options available for business funding that are not quite so critical. Determine if you have the means to qualify for a traditional business loan or if you need to work with a lender that offers more creative and flexible underwriting.

Consider the Loan Time Frame

The typical time frame for a traditional small business loan can drag on for weeks or even months. The lender will need to carefully scrutinize all aspects of your finances and may have numerous questions for you to answer as part of the loan process. In many cases, supporting documentation may also be required after you have answered specific questions.

It can be stressful to go through this kind of loan process. Many lenders that offer more creative and flexible underwriting will not require you to jump through hoops to get the funds that you need. More than that, they may have a much shorter time frame so that you can easily get the money your business needs without delay.

Think About Repayment Options

Many small business owners who need access to extra money through a loan fail to think about loan repayment. The most traditional and common repayment option is to set up equal monthly installment payments. However, if your business operates off of fluctuating sales, this is not always ideal.

Some lenders offer daily or weekly payment options for you to consider, and you may find that making many frequent payments is easier for you to manage in comparison to a single large payment each month.

Setting up a small business loan for your company can be seemingly overwhelming, but we want to help you navigate through the process. Our team offers competitive financing loan terms, fast underwriting and limited documentation requirements.

We are committed to making the loan process simple and easy for you. If you are ready to learn more about our creative financing solutions, call our office today at 1-866-257-2973, or you can write to us in the chat box on our website.