Read What Experts In The Funding Industry Are Saying Behind The Scenes.
There are a few things businesses can do to help their approvals to be higher, and rates to be lower. Before we get into it, we believe it should be mentioned that this is not an overnight solution. What you are about to learn today takes time. No instant shortcuts. They did not build Rome overnight, Your Situation Will Not improve Overnight.
KNOW THIS GOING INTO IT:
There are a few factors you cannot control, the fact is some banks and funding companies simply do not fund some industries. That does not mean you will not find funding, it means it may cost more than a traditional bank loan. Time in business will affect your approval and rates, many businesses that are less than two years find themselves using their personal credit. Merchant cash advances are often used. It should be remembered that although they are not loans, they are useful if used correctly. Establishing a pay history will help your business when it needs cash to have access to it quickly, you may not need it today but there is always going to be that day that you do, and you will be glad to have established that relationship when it comes.
KNOW WHERE YOUR MONEY IS
Keeping an average of 10% of your monthly income as a balance in your checking account is always a good move because it shows underwriters stability and responsibility. Keeping your personal expenses separate from your business is recommended because your business is a separate entity. Knowing who owes you, and when can also help. Using programs like Quickbooks or others is also very helpful.
PUT YOUR MONEY TO WORK
Everything in your business is affected by your finances, how your staff works can affect it by not getting the most out of your payroll hours, not tracking petty cash adds up, control on the product is an obvious thing, but the one overlooked is how you invest your money into your marketing. Get to know your customers, and understand what they want and how they find it, that way you can tune your marketing to find more customers like them. Get hands-on, when you are working on social media to get new leads. Paying for ads does not cut it.