How can I secure the business funding I need?
It’s a fact, businesses need capital to grow. There are a number of ways to leverage your business to increase production and overall revenue, but most of them depend on how and when you can get the necessary funding. It’s important to know your options in advance so you’re prepared when it’s time to pull the trigger on that next upgrade.
If you have top tier credit, certainly above 700, you may want to start with the bank. If there are any bumps and bruises on your credit profile at all, you will likely be denied. Furthermore, if your business bank account has any negative balances, this will be a big red flag for banks. One that might not be overcome.
If I cant get a bank loan for my business, what options do I have?
When the 2008 crash happened in the mortgage industry and financial markets, a new financial product emerged. That product is known as the Working Capital Loan. Although these institutions are ultimately backed by the banks, direct lenders are now carrying the burden of getting most businesses funded. If you are unable to secure a line of credit from the bank or if the amount is insufficient, you’ll need to work with one of these direct lenders for a short-term working capital loan for your business.
What can I use a working capital loan for?
Well this answer in short is very simple: anything you want. That’s right, since the money comes to you in cash wired directly into your business bank account, there are no strings attached to the money and literally the sky is the limit. However, lenders are not interested in funding a business when the capital is going to be used for personal use. In fact they will ask you that directly and will not fund the money if you intend to use it for personal reasons.
Aside from that a business can use the funds for any number expansions. A company may use the money as a down payment on a commercial space. A business may also use it to hire more employees. Additionally you could use the money to buy materials, equipment or just get your business through the slow season when the bills don’t stop.
I have a construction company. Can I get a working capital loan?
Yes, absolutely. Based on the same criteria, private lenders are funding construction companies more and more. It tends to be the case that many commercial construction entities do not get paid until after the project is completed. Therefore, these companies are required to foot the bill for their team of workers, materials and usually months or even years of construction before the purchasing party makes that payment.
If the above sounds like you then the working capital solution is most likely the right fit for you. Direct lenders can get you the funding you need to get your project off the ground without skipping a beat. Plus if you get paid early there are no early payoff penalties with these loan types. In fact you will be rewarded.
So, what are you waiting for? Apply today and find out just how much you can get approved for.