Because many small businesses rely on borrowing capital to fund their growth, they are recommended to follow the example of bigger, more successful companies that make funding business initiatives a part of their annual plan. With this said, the following is here for consideration as small business owners structure their plan together for the year:
Weigh financial needs: Consider having a timeline. Having 4-5 months versus a few days or weeks to fund an important transaction can make the difference in where you look for the financing you need.
Financial positioning is important: Knowing the financial fitness of your business is important. Understanding your business and personal credit history / profile is equally as important. Why? Lenders, not only want to know you can repay a loan, but also want to know if you’ll be able to make payments even when the unexpected happens. Lenders don’t necessarily ask these questions, but the do scrutinize applications. For this, Be proactive! Think in advance! It can help you benefit your loan application when the time comes.
Many financing options available, but which is right for you?: Depending on what type of business you operate and how long you’ve been in business, making financing a part of your annual business plan will prove greatly beneficial. From short-term or traditional-term loans, accounts receivable financing, equipment leasing, or even working capital financing is available for your needs depending on what your business financing strategy may be. It is always best to mirror the type finance product to the specific business need and what you are wanting to accomplish.
Wouldn’t you agree that incorporating steps similar to these and integrating a financing plan into your business blueprint for the year is a more methodical and astute approach than having to experience knee-jerk reactions in finding last minute financing solutions that may not be beneficial for you and your business? There are many more options available for small businesses today than there ever has been creating a need for a much more savvy and strategic financing consultant to come to business owners side to help choose the right financing options that will not only meet their needs but makes tax sense!
With this said….call, reach out, and talk with one of our financing consultants on how they can aid in structuring the right type of financing for your type of business & your needs.
949.228.9411.