4 Ways to Make Small Business Financing Work for You
Even if you make the decision to run a lean small business, you may have a need for small business financing. Do you know your options? Here are 4 ways that you can make small business financing work for you.
Traditional Lending
There’s one thing to keep in mind about small business financing and traditional lenders. Traditional lenders will often require a personal guarantee on the loan. This is true even if you want to take out a loan through the SBA. If you’re starting or already own a small business and have good credit, traditional lending may be a good option for you. The better your personal credit score is, the lower interest rate you will receive on the loan. Traditional lenders are going to look at your ability to pay back the loan (including the cash flow of your business). While it may be beneficial to shop around for the best interest rate, keep in mind that every traditional lender that checks your credit will also affect your credit score.
Investors
Depending on the business, you may want to look for an investor. There are different types of investors. Some investors will want a return on their investment (ROI) in a shorter amount of time than others. There are also angel investors. There are investors who may want a certain amount of control in your business; there are others who only want repayment and do not want the obligation of making decisions for your business. To learn more about how to find investors for your startup, read Jim Casparie’s article published on Entrepreneur.com.
Crowdfunding
Crowdfunding means that you rely on the public to help you raise funds to start or maintain your business. There are various websites available that you can use, but it’s important that you choose the right one. Some crowdfunding sites limit the type of business that can use their service or they put stipulations on the account that unless you raise the entire amount, you can’t access any of the money. Many crowdfunding sites offer you the ability to provide something to your contributors. The benefit to this is that helping a small business is incentivized which often encourages people to help out. Make sure that you choose a reasonable startup amount that you can feasibly reach. You will have to make sure that you take the time to promote your startup funding site.
Get Help Finding a Lender
If you aren’t sure which small business financing method will work for you, Clients ARM can help. We provide a free service known as Hello Finance Manager. We can help you by linking you up with lenders that may be able to help. This service is free for you to use. Clients ARM is not a financier. We are a third party provider that simply helps small business owners find financing solutions.
Save Time and Money While Growing Your Business
Clients ARM can help you save time and money while growing your business. We can assist you with customer service, collections, accounts receivable, and in other important areas on a remote basis. You’re able to keep your attention where it belongs: on your clients. We put our 30 years of experience to work for you. Partnering with Clients ARM is around 40% less expensive than hiring a full time employee. You spend less while getting more experienced assistance for your needs. Contact Clients ARM today to learn how we can help.
