Month: January 2023

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Business Advice Business Loans

Growing a Business as a Loan Consultant: What to Expect

consultant with laptop talking to a woman about a deal

If you’re a loan consultant and want to build your own consultancy business, you have numerous opportunities. You just have to know how to navigate the industry.

The first step is to find a niche to specialize in. Next, start networking with other professionals in this area. This strategy will help you find clients who need your services. Advertise your services online by creating an online presence and promoting yourself on social media platforms.

Finally, getting a business loan will benefit you in the long term because it allows you to focus on other aspects of the company rather than worrying about finances all the time.

In this article, you’ll learn what to expect when growing a business as a loan consultant and the types of business financing.

Group,Of,Business,Partner,Professional,Team,Working,Together,Meeting,Are

Financing Your Consultancy Business: 4 Things to Expect

  • Consider your financial situation first

Small business loan consultants always need to consider their financial situation before they start growing their business because the lack of funds leads to multiple roadblocks. Financing is crucial to growing any business; if you don’t assess the situation, it can prevent growth.

Understanding your finances will also assist you in making business decisions. Knowing what you can and should afford narrows your options to what your company needs to further its growth.

  • Double-check your expenditures and cash flow

With your financial situation, expenditures and cash flow are things you should understand to fully grasp where you stand as a consulting business. You have your payroll, marketing, supplies, and even travel expenses to consider. 

Leaving these unattended expenditures results in issues with your capital since some aspects of the business require more financing.

  • Know your credit score

Credit scores play an essential role in business loans. They determine your probability of getting a loan. 

The higher the credit score, the better your chances of landing a loan. Not knowing this wastes your time if you have a low credit score because the odds of receiving a loan are slim.

  • Get the right timing

Having the funds at the right time brings in more opportunities. If there’s a chance to expand the business, but you have no funds, you’ll have to wait. On the other hand, if there’s an opportunity to grow when you have the finances, you can immediately focus on that.

4 Types of Business Financing for Consulting Businesses

  • SBA loans

Small Business Administration (SBA) loans guarantee loans with member banks and other credit unions. They offer low-interest rates and some of the best loans available. To qualify, you’ll need a high credit score and collateral.

  • Cash advance

A cash advance is a kind of financing that revolves around your business’s cash flow. The requirements are less strict than other long-term financing options and are a great way to gain additional ROI on specific projects because you can get answers on your loan application within hours. Periodic payments will also be either weekly or daily.

  • Term loans

Term loans have a fixed interest rate during the specified period and will require you to pay monthly. Traditional banks will offer this loan, which comes with or without collateral.

  • Short-term loans

Short-term loans are for businesses that require financial support during a short gap. These loans are offered online and are payable within a year, but that depends on the lender. The process for this loan is fast, but the interest rate is high. 

Choosing the Best Type of Financing for Your Consulting Business

Choosing,The,Best,Interest,Rate,Of,A,Financial,And,Mortgage

Lending companies always look for the best candidates when reviewing each loan application. If you want to increase your chances of approval, here are four questions to consider.

  • What is your loan purpose? 

When you apply for a loan, you’ll be asked to provide information about your income and expenses. You must give details about the property or business you plan to use as collateral for the loan.

You’ll need proof of income, such as pay stubs, annual revenues, monthly cash flow, or tax returns showing recent earnings. By identifying your loan purpose before applying, you can get the best terms on your loan and avoid costly mistakes.

  • How is your credit history? 

If you know your consulting business’ credit history, you’ll be able to see what information is being reported about you and what kinds of loans might be available to you. Find out if there’s anything on your record that would disqualify you from getting approved. 

For example, if you’ve been late on payments in the past or have defaulted on other loans, it may be difficult or impossible for lenders to approve your application until those issues are resolved.

  • Can you repay your loan?

Your budget should be based on your income and expenses and include all the money coming in and going out. If your income is insufficient to cover your costs, you may need to consider other ways to pay off the loan. 

For example, if you have credit cards with high-interest rates that are close to being maxed out, you could transfer those balances onto a lower-interest card. Your revenue and cash flow numbers are essential to getting your needed financing. Your potential lenders need to see your consulting business’ financial ability to pay periodically. 

  • Do you need collateral?

Determining if you need collateral will lead you to pay extra fees to get the loan or rely on other factors such as your credit score and income level. 

Collaterals are important because they help lenders feel more comfortable making risky investments with money from investors who may not be able to pay back their loans if something goes wrong with their business or personal finances.

Raise Money for Your Business

Financial,Growth,Concept.,Stacks,Of,Gold,Coins,On,Table,And

Finances are a constant factor that many businesses consider. It keeps the company alive enough for it to grow and expand. Knowing the types of financing available for consulting businesses is advantageous, providing insights that will improve decision-making for future ventures.

If you’re looking to get a business loan and fund your small business, JK Capital Finance is an online lending company that can assist you. We offer multiple services, from business loan applications and check rediscounting to quick approval and non-collateral loans. 

For more information, visit our website, and feel free to visit JK Capital’s official Facebook page today!

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Business Advice Business Loans Small Business

Alternative Financing Options for Small Businesses in the Philippines

Businessman talking to couple on the couch with laptop and documents on table

Loans are integral to industry development in the Philippines, helping entrepreneurs and business owners grow and reach success. However, for small to medium enterprises (SMEs), financing is another barrier they must overcome. Most traditional banks tend to have rigid requirements, which makes applications difficult for some SMEs. 

This challenge significantly affects the Philippine market since SMEs make up 99% of businesses in the country and employ 62% of the workforce, based on data from BusinessWorld. Thus, a drop in SME progress could cause an economic slowdown. 

Fortunately, alternative financing options make applications more manageable to support these enterprises. Knowing how to finance a business with alternative funding ensures your company’s survival during financial difficulties. With that, delve deeper into this financing approach for SMEs.

What is Debt Financing?

asian male finance staff is calculating by using a calculator

Debt financing involves borrowing money to fund your enterprise by selling debt instruments in exchange for funding. It’s a versatile tool outside of traditional bank loans that counts as a type of alternative financing.

Unlike equity financing, wherein lenders get an equity share of your company, debt financing gives you complete control over your SME. Investors aren’t shareholders, so they don’t have a say in how you run it. Moreover, interest payments are tax-deductible, so you can subtract them from your tax obligations.

Learning how to get financing for a small business with debt financing is helpful in case you’d need to fund your SME. However, it’s just one of the many alternative financing options for SME owners. There are also other ways to fund your business. You may consider the alternative financing options below to find what suits your needs. 

5 Types of Alternative Financing for SMEs

1. Crowdfunding

A popular approach to funding your small business is calling for financial contributions from multiple individuals, which many refer to as crowdfunding. The process typically entails creating crowdfunding campaigns stating the amount required to finance your budding business.

Forecasts suggest that global crowdfunding could reach $42.93 billion by 2028, with an annual growth rate of 16.40% from 2022, attesting to its effectiveness. So, if you’re having difficulty financing your SME through single entities, consider casting a wider net by crowdfunding.

2. Angel investors

An angel investor is an individual who uses their own money to invest in an SME or entrepreneur, often in exchange for an equity stake.

Angel investments are significant to businesses worldwide. In 2021, the total funds invested through this approach were $29.1 billion, 15.2% more than the previous year. Moreover, remember that angel investors tend to fund already stable SMEs, so they’re an excellent complement as one of your small business’ sources of finance.

3. Venture capitalists

A venture capitalist is another private investor funding small companies for an equity stake. While they may seem similar to angel investors, there are distinct differences between them. For instance, while angel investors’ only goal is financial support, venture capitalists aim to develop the company through direct participation in its operations.

That said, venture capitalists also prefer to invest in SMEs already set for growth, so check if your company fits the bill before approaching a firm.

4. Government-backed loans

You could also get a business loan from the government. The primary benefit of government-backed loans is their extremely low-interest rates. Hence, they significantly help SMEs without the capacity to pay for higher rates.

The two primary issuers of government-backed loans in the Philippines are the Small Business Corporation (SB Corp) and the Department of Trade and Industry (DTI). However, remember that you must be a registered contributor to the government body from which you want a loan.

5. Bootstrapping

Money from your savings, borrowed from friends and relatives, or earned from selling assets can also fund your SME in a process called bootstrapping. 

This approach is typical for micro-businesses, such as sari-sari stores, that require a small amount to progress. However, many corporate giants today started as bootstrapped enterprises, such as GoPro, in which founder Nick Woodman poured $10,000 of money he earned from selling bread and belts into the business. 

When to Consider Alternative Financing

confused, frustrated young man, reading letter in cafe, debt notification

  • You have a poor credit score

Credit scores inform lenders about your reputation as a borrower. However, traditional financing options often have high credit requirements, which may take time for startups to reach, given their risky environment. Alternative financing solves this problem by providing loans to SMEs with little or poor credit scores, helping them expand.

  • You need quick funding

Getting a loan from traditional banks is often time-consuming, which is detrimental, especially if time is critical for your SME’s growth. Fortunately, alternative financing providers generally offer speedy procedures and low-interest rates to receive your business loan as soon as possible.

  • You’re rejected in traditional financing

Traditional banks often have labor-intensive application processes unfavorable to SMEs, making it challenging to secure approval, not to mention the stringent requirements, which may lead to your rejection. Meanwhile, alternative financing options, especially those from online lending companies, generally have minimal paperwork, making approval easier.

  • You have no collateral

Banks often require valuable assets as collateral to ensure your payments. In contrast, alternative financing providers generally don’t involve collaterals or personal guarantees, so you won’t have to worry about putting your assets at risk.

Expand Your Business with Alternative Funding

fund managers, team consultation and discuss about analysis investment stock

SMEs comprise a vast portion of Filipino businesses, hence the importance of financially supporting them to keep the economy and workforce afloat. However, given banks’ strict application requirements, it may be challenging for these enterprises to acquire loans. 

Fortunately, alternative financing options exist. With lenient requirements, swift processes, and low-interest rates, SMEs can finally gain the resources to facilitate expansion.

Are you looking for alternative financing for your enterprise? JK Capital provides quick approvals and non-collateral loans to help it flourish. Contact us to learn more about our business loans, application processes, and other related services, and visit our Facebook page for updates.

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Business Advice Small Business

How to Improve Cash Flow in Small Business: 4 Effective Tips

Business people talking with laptop and documents on table

You’re practicing cash flow management when you track, evaluate, and maximize the difference between cash receipts and cash outlays. Cash flow is the net amount of cash and cash equivalents coming and going out of a business. Money spent and money received reflect inflows and outflows, respectively. 

In a business, proper cash flow management is essential to give you a clear picture of your expenditure and profit. SME owners need to understand how to manage their business’s cash flow for long-term financial success. 

Debt financing can be a great alternative if you have difficulty meeting cash flow needs. You can use this method as a tool to help scale and grow your businesses, even at struggling stages.

Every business goes through some cash flow issues. However, this doesn’t mean the end of your venture. There are different ways to ensure that you maintain positive cash flow for your business and improve it in the long run. Here are some significant reasons and tips on how to improve cash flow management.

Why is Cash Flow Management Important to a Small Business?

cashflow word on calculator and pen on documents

As a small business, looking out for your cash flow is in your best interest. A positive cash flow indicates that more money is entering your business than outgoing. If you don’t carefully manage your cash flow, you can make poor choices that can endanger your company.

Poor small business cash flow management can lead to the following:

  • Failure to pay suppliers
  • Unpaid debt obligations
  • Inability to purchase new inventory
  • Unpaid wages
  • Contract losses

Keeping a steady cash flow isn’t always easy, but it’s necessary to ensure business stability. Proper cash flow management can do wonders for your business, especially if you’re trying to fill in liquidity gaps. One great way to fill the gaps in liquidity is by utilizing business loans.

While the word loan may seem daunting, it isn’t always negative. Loans are a great way to meet the short-term liquidity needs of your business. Short-term debt is your financial obligation within the year, and if you’re coming up short with your cash flow, applying for a loan may be your best option.

Short-term loans entail paying back the principal amount plus interest by a specified due date, often one year after receiving the financing.

A common concern for people applying for loans is the interest they have to pay apart from the borrowed money. While this may cause concern, especially if you only have a small business in a need state, a loan will still benefit you since the money you have on hand can help you pay for gaps in your cash flow and keep it moving. It’s advantageous for paying off rent, payrolls, overhead expenses such as utilities and operational costs, and for unexpected expenses that may disrupt regular business or during seasons when business is slow.

If you think getting a loan is the best option for your business, then ensure that your cash flow is steady and properly monitored. Your cash flow shows prospective lenders that you can recoup a loan and generate enough revenue to pay off any debt you may have in addition to the cost of a new loan. 

4 Ways to Improve Cash Flow Management

Cash flow management can be tricky if you’re clueless about it. Here are a few ways how to improve cash flow in a small business. You can implement these to help you improve money management and establish a steady cash flow. 

1. Analyze your cash flow patterns

laptop and phone with graph, calculator, money and coins

Negative and positive cash flow swings have a pattern, so don’t be surprised. By analyzing and figuring out this pattern, you can start anticipating the swings and prepare earlier. You can begin studying your cash flow pattern through the following examples:

  • Determine your income sources
  • Know your expenses
  • Create your cash flow statement
  • Study your cash flow statement

2. Consider loaning money before you need it

hands counting money with paper, calculator, notebook, pens on table

Maintaining accurate accounting records allows you to create a forecast for your company based on past performance. Being proactive with your cash flow will enable you to foresee the money you expect to have and aid in planning for historically difficult times or seasonal trends. It helps you realize whether you need to get a business loan for the upcoming trying times, even if they’re not imminent.

For instance, if you anticipate needing additional funds in the future, you could want to begin negotiating with lenders about a bridge loan to help open the door for future financing—similar to how you might manage your other responsibilities to avoid cash flow surprises if you can predict major expenses before payout.

3. Use unused funds

piggybank with coins and pennies, scattered on surface

Using unused funds can increase your cash flow and fund your small business. Your idle funds are those that aren’t producing any income.

If you have sizable amounts in accounts that don’t pay interest, you can find a better place for them. You can think about transferring them to an interest-bearing account with a potential annual percentage yield of 0.5% or 1%. Another choice is to use the funds for business expansion, debt repayment and interest-rate reduction, the purchase of new equipment, or the advance payment of some expenditures.

4. Send invoices right away

hand with pen writing on paper on clipboard

You’ll have a more challenging time collecting payment if you send out invoices too later. In fact, 87% of companies claim they frequently receive payment after the invoice due date. To avoid this, consider speeding up your billing procedure if you’re experiencing cash flow issues. Doing this ensures that your clients receive their invoices more quickly, resulting in speedier payments.

Maintain Business Cash Flow 

Cash flow is a vital part of any business, and knowing how to manage it properly is one of the key ways to ensure your business stays afloat. Consider your finances, where they come from, and how they enter your accounting system.

A positive cash flow is an ideal goal for businesses, and it’s something you can achieve by following the tips mentioned and being mindful of your business finances. With business loans and proper cash flow management, you never have to worry about achieving positive cash flow and wondering how you’ll keep your business running. 

Ultimately, if you are looking for companies that can assist you with achieving positive cash flow and better cashflow management check out JK Capital Finance. We are an online lending company that provides full-suite loaning services to help you boost business productivity and performance. Contact JK Capital through our website or our representatives on Facebook for more information.

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Business Loans Small Business

Small Business Funding: Ultimate Guide for Entrepreneurs

Small Business Funding, Ultimate Guide for Entrepreneurs

Every entrepreneur’s journey starts with finding ways to fund their small business. Sponsors can be individuals, groups, or financial institutions like banks. 

Small business funding is necessary for your business to stay afloat. It also acts as a safety net during global crises or low sales. Small and mid-size enterprises (SMEs) can take advantage of different business funding options and make a more personalized experience. 

If you’re starting a new business or need advice on small business funding, this guide will help you learn all you need to know about it and how to navigate it effectively.

Small Business Funding, Ultimate Guide for Entrepreneurs, Infographic

What is Small Business Funding?

Small business funding refers to financial support an aspiring business owner receives to run a small business. It also extends to purchasing an already established business or investing financial resources into another small business’s future activities. Startup financing and franchise financing are also alternative names to this concept. 

Small business financing is necessary for small businesses since it effectively allows for day-to-day functions and promotes long-term growth. Small companies usually look to request funding if they need working capital or assets for development and other similar ventures.  

  • How Does Loan Amortization Work for SMEs?

When businesses borrow money from banks, they usually take out an installment loan. The process of scheduling a fixed-rate loan into equal payments is called loan amortization, and it’s often done semi-annually or annually. 

Additionally, an amortization schedule shows you the amount of interest and principal value of each payment. A loan payment’s principal is the amount you borrowed from the bank, while the claim is the charge you incur throughout the loan’s lifespan. 

Each periodic payment is the same, except when you begin the process, most of the amount paid goes to interest. Over time, the percentage of each payment going to interest decreases while the share going toward principal increases. 

By this point, the principal is a more significant portion of each periodic payment. Debt to the bank is amortized if paid in equal installments throughout its term. 

How Does Small Business Funding Work?

Business loans give you and your business financial payments, either in lump-sum or through credit, to kickstart your business ventures. In exchange for this investment, you repay the same value through periodic payments over time. The frequency of compensation depends on the type of loan your business availed and ranges from payments made daily to monthly.

It would help if you had an arrangement suitable for your business needs. To avoid risking your business’s finance, you need to understand how applying for a business loan works. 

As a pre-requisite, most loaning bodies in the Philippines have businesses submit several documents before being considered for funding. Examples include government identification, company background, financial statements, and registration certificate. Refer to the list below on how to get a business loan. 

  • Identify how much funding you need

Before applying for a loan, you’ll need to know how much money you need to fund your small business. It’s a waste of time if you go to a bank or other financial authorities without knowing what you want. 

You should ensure that the amount you’re borrowing is realistic and not too high. Otherwise, the lending party can doubt your capacity to pay it back. Likewise, requesting an amount that’s too small results in your loan being rejected almost immediately since banks can’t profit from it. 

  • Learn about the requirements

Banks and similar entities are typically the hardest to qualify for when applying for a loan. Usually, lending authorities in banks require borrowers to meet a minimum standard for credit score, business revenue, and years in operation. Understanding the minimum requirements and qualifications increases the chances of your loan getting approved by the bank. 

For other common sources of loans, like online lenders, the requirements aren’t as strict, and you can qualify for a loan even if your credit score isn’t as high. In both cases, however, you’ll need to provide paperwork and documents, such as bank statements, tax returns, and business plans. 

  • Develop a business plan

A business plan is a great way to show lenders how you plan to use their money. Having a dedicated business plan also builds investor confidence in your business. 

When making a business plan, you should strongly consider the nature of your business, the product or service you plan to sell, what your team is like, marketing strategies, roadmaps, and financial plans and projections.

  • Assess the amount and frequency of your payments

Your business’s revenue dramatically affects the chances of getting your loan approved. As such, while applying for a loan, it’s essential to consider how often you’ll be paying and how much you can afford to pay. You should also factor in the frequency of when you pay and if you can afford to pay it daily, monthly, or semi-annually.  

  • Choose the loan type best suited for your business

Every business is unique and has different needs. Small business funding schemes are popular since they offer various options business owners can choose from. Common loans to small businesses include short-term loans, equipment loans, term loans, and invoice financing. 

Small Business Funding Facts and Statistics

Financing is a company’s most necessary tool to operate effectively. Small business funding has seen numerous successes over the years and is offered in most countries.

Small businesses make up 99.9% of all companies in the US, equivalent to 32.5 million businesses as of 2021. A similar majority is also observed in the Philippines, with small businesses also employing 62% of the country’s workforce. 

To better understand funding’s importance, a study by a US bank showed 82% of businesses fail because of poor cash flow management, while another 38% close their businesses simply because they ran out of purchasing capital. 

The Philippines also faces similar problems. In a survey by Mambu, a cloud banking platform, 3 in 4 Filipino small and mid-size businesses have been unable to secure sufficient business funding over the last five years. 

After failing to secure the necessary financing, 48% have cited that they experienced issues regarding cash flow. Meanwhile, 48% of the surveyed businesses were also unable to launch new products or services, and 35% struggled to repay their creditors. 

Moreover, loans can also be rejected by lending entities, another hurdle businesses have to face when applying. A less-than-ideal credit score, insufficient years in operation, poor collateral types, existing debt, and operations within a risky industry were all cited as common reasons for rejecting loan applications. 

Depending on the loan type and arrangement, loan values in the US range between $20,000 to $545,000. In the Philippines, lenders provide applicants with loans ranging from P100,000 to P20 million. 

What are the Common Types of Business Funding?

One of the biggest appeals to small business funding strategies is its flexibility to accommodate many applicants and cater to their personal needs. Below are some common types of funding being offered. 

  • Banks loans

Bank loans are arguably the most conventional lending source relative to other means. It requires businesses to submit various documents, including profit information, business plans, and financial histories. Because it’s a financial institution, bank loans are sought after as they act as safety nets for businesses. 

  • A business line of credit 

Similar to a credit card, this type of funding is based solely on your credit limit. Two types exist: secured and unsecured. For the former, you’re required to provide collateral against the line. The latter may not require collateral but can still ask for personal guarantees. Interest is paid only during the money draw. 

  • Crowdfunding sites

Crowdsourcing sites are also viable methods for getting extra cash to start your business, with websites like GoFundMe and Kickstarter being prime examples. 

Unlike the traditional applications from banks, crowdsourcing relies on having an exciting and engaging storytelling experience worth investing in. The probability of your success hinges on how well you appeal to the online community.

  • Personal savings 

At the beginning of your business venture, you can generate financial resources through savings or with the help of your friends and family. The value you get here might not be as much compared to other lending options, but repayment is usually more flexible than others. 

  • Angel investors

Usually an individual with a high net worth, angel investors lend funds to businesses in exchange for a stake in the company. Since their goal is to have a position within the company, they’re more likely to invest larger capital. 

Many in this category are involved in private equity, so businesses looking for loans should pitch their business plans, financial statements, and other relevant information before being granted a loan.

How to Know What Type of Business Funding is Right for You? 

With so many options being offered, you might find yourself overwhelmed. You’re now faced with picking based on your business, but how can you decide? Not to worry, below are some steps to ensure the first loan you apply for is best suited for you!

  • Be self-aware

Before doing anything, you’ll need a rough estimate of what kind of funding you need and the subsequent amount. It also includes conducting a background check on your own business, its financial track records, credit scores, and debt-to-equity ratio. At this stage, you should be realistic about your loan and apply for what you need. 

  • Consider your future financing needs

Do you see your business operating at a more large-scale level in the future? Are any possible expansions on the horizon? If the answer is yes, add it to your list of considerations when applying for financial loans. By acknowledging what you might achieve in the future, you can plan for better decision-making. 

  • Look at the repayment terms

Identify how much time you have to pay off the loan and look for one with schedules you can confidently abide by. Additionally, ask yourself if your business can finish paying the loan early or does it need to wait until maturity. Proper assessment and decision-making help save you money in the long run. 

  • Consider interest rates

Although it shouldn’t be the deciding factor, you should also calculate interest rates. It would be best to be smart when comparing rates since, depending on what you choose, small percentage changes can make all the difference in the grand scheme. 

  • Take your time

Be patient with navigating through the loan application process and evaluate everything carefully. Always remember to take things slowly and to think things through before deciding. Rushing through the process results in disastrous outcomes and jeopardizes your business’s financial capabilities. 

Top Financial Challenges Small Business Owners Can Expect

Throughout the lifespan of your business, you’re bound to come across challenges along the way. While many can be mitigated or alleviated by small business loans, others can be avoided by the business itself. 

  • No budget plan

A business with no budget plan is a recipe for accumulating debt and irresponsible handling of company finances. Having a plan and abiding by it helps you grow and expand to better things. Additionally, the budget should be regularly updated and adjusted to current market climates. 

  • Financial reporting negligence

As a form of good practice, businesses should always keep a track record of all their expenses or activities that require financial resources. Neglecting to accurately declare your financial records leads to financial losses or interest charges. The snowball effect impacts your company’s cash flow and financial capabilities. 

  • Too much debt

Accumulating too much debt at any point in your venture has different short- and long-term consequences. You might have to tap into a portion of your profits just to pay off the debt, resulting in revenue losses that you could have used for other business projects. 

  • No preparation for unforeseen expenses

Expenses not anticipated by your company can significantly impact your plans. As such, having an emergency account specifically for unforeseen expenses cushions your business in times of distress or crisis. 

  • Late bills payments

Failing to pay your bills on time costs your small business, even if you think it’s harmless. The most notable area this affects is your credit score, which is one of the important metrics needed when applying for a loan. When you have a poor credit score, you might find it harder to find entities willing to grant you loans. 

Benefits of Applying for Business Loans

Applying for business loans opens many doors for small businesses everywhere. Apart from giving you initial capital, it also lets your business have accomplishments and growth opportunities which they otherwise couldn’t have experienced without the startup capital. Find other benefits of applying for loans below.

  • Full control over the borrowed money

You don’t have to split the borrowed money between investors or other shareholders when you’re given a loan. It’s meant solely for the benefit and future of your business. As such, you don’t have to worry about other people or entities interfering with your decision-making. 

  • Interest rates are usually low and affordable

Banks and similar institutions offer competitive rates to their customers. While interest rates depend on your loan amount and arrangements, they’re generally low, so more customers are encouraged to apply. Interest rates for business loans are also much cheaper because there’s high competition for customer attention. 

  • Flexible and convenient

Small business loans have a large pool of options to choose from, so businesses looking to apply can have a more convenient, hassle-free, and personalized experience. You can even have different durations for repayments or loan shelf-life, like long-term and short-term. 

  • The application process is easier than others

Applying for a business loan is a challenging process, but relative to other types of loans, it’s easier to get approved. After pitching your intention for a loan and meeting the minimum requirements, you can get approved. Ensure you submit documents like business plans and financial records throughout the application process. 

  • Improved business credit

Once you have a track record of business loans, regularly pay on time, and repay accordingly, you can boost your business credit and reputation. Finding financing opportunities with lower interest rates becomes much easier when your business achieves this. 

Achieve Now, Pay Later!

Small business funding is a great way to give your small business the tools and opportunities it needs to thrive in its industry. Additionally, it plays a big role in a company’s survival, especially in today’s market landscape. With many options to choose from and several benefits, the possibilities for your business are virtually endless. 

If you’re planning to start your loan journey today, consider checking out JK Capital, an online lending company specializing in loans and other related services. For services relating to business loans or loan applications, reach JK Capital and our team of experts via the contact page.