Did you know an estimated 543,000 attempts to start a small business occur every month? In that same month, however, more employer businesses shut down than start up.
This is all the more reason to ensure you’re getting the most effective working capital loan possible to give your business a fighting chance at success.
Let’s take a look at how you can get a fast and affordable loan for your small business needs.
Why Do I Need a Working Capital Loan?
Running a successful business demands a steady flow of capital. One way to make sure that you have the necessary capital, especially during the early days of your business, is a working capital loan to help support you in this goal.
Working capital loans can help you:
- Cover business operation expenses, such as payroll, advertising, rent, and debt costs
- Empower you to invest in your business’ growth
- Maintain reliable financial support during times of lower business activity
- Gain the freedom to move your business from surviving to thriving
You’ve heard the saying, “You have to spend money to make money.” It may be necessary to incur debt initially to gain sustainable momentum for your small business.
What Should I Know About Working Capital Loans?
Most businesses don’t have consistent income throughout the year. They rely on working capital loans for financial support during the slow periods.
These loans are quite helpful. They also have other important elements you need to be aware of.
Collateral and Interest Rates
Working capital loans often require collateral and assets in the event the loan cannot be paid back. Interest rates may also be quite high when the time comes to repay the loan.
Also, these loans are typically tied to the business owner’s credit. This means any default in repayment will impact the owner’s credit history.
How Can I Get a Fast and Affordable Working Capital Loan
Working capital loans offer short-term solutions for your financial needs. A few things you’ll want to look for in a fast and affordable loan are:
- Availability of funds within 72 hours
- No red tape or loads of paperwork to complete
- Approval for your loan in under 48 hours
- No penalties for prepayment before the loan is due
- No assets or collateral required
You’ll want a loan company who is willing to work with your situation and tailor your loan to your business needs. Additionally, you’ll want a guarantee that you’re receiving the lowest cost for the funds or the loan company writes off your first repayment.
Reasonable rates are also important. For a person with good credit, a reasonable rate should not go over 10%.
Avoid common mistakes when starting a business, such as not getting all the facts and being drawn into a loan with outrageous interest rates.
Fast and Affordable
You want your business to start out on solid footing with a chance to succeed.
For that, you’ll want to make sure you receive the quickest and most affordable working capital loan available.
For more information on how you can maintain a successful small business, check us out today.
Combining a high level of personalized service with a cutting edge lending platform, Formula Funding delivers an unparalleled banking alternative.