5 Factors To Consider Before Getting Cash Advances And Loans
As a small business owner, you know you need to working capital for your business to thrive and grow. However, getting a loan can be quite complicated, but it does have to. At iAdvance Now, you can get the necessary funding for your business needs quickly.
Before you consider cash advances and loans, there are 5 factors you need to consider. By considering these factors, you will definitely maximize financing for the profitability and benefit of your business. Do not fall into the temptation of simply borrowing money without having a clear plan on how to profit from it.
1. Know Your Loan Options
There are many types of financing available for businesses. Traditional loans usually require a good credit score to become qualified. It takes a lot of paper work and require you to provide a collateral for security purposes. There are alternative options that do not require collateral, though, and companies like iAdvance provide these types of loans.
Depending on you revenue type, you can get a merchant cash advance, a credit card cash advance, a term loan, or a business credit, and the like. Each of these financial products has its own advantages and disadvantages. You can talk to a company representative to determine which product is best suited for your needs.
2. Determine Your Business Goals
Before deciding to take on a cash advance or loan, make sure to specify what business expense you are going to finance. It can be to buy inventory, buy new equipment, provide for payroll, or market products and services. It is a good idea to talk to your accountant regarding this matter to have a clear financial goal and plan of action.
3. Have a Plan of Action for Profitability
A cash advance or a loan is not free money. You have to pay it back to the lender with interest. Therefore, it is important that the money you borrow should be able to generate revenue, or at least your future sales should be able to repay the advance or loan to avoid default payments. Plan a course of action before deciding to take a loan.
4. How Much Do You Need?
How much money you need to borrow depends on your business goals. For example, if your plan is to buy a new equipment to facilitate in your business growth, determine how much it costs and how much revenue you can earn from it in the long run. If your goal is to get money for marketing, determine how much money you will be spending and estimate how much future revenue your marketing efforts are going to generate.
5. Loan Period
As part of your business plan, determine how long you are going to need the loan for and how likely are you going to need additional financing. It can be for a month, a quarter or a year. Be specific as much as possible.
At iAdvance Now, you can get financing for your immediate business needs. No need for collateral. Apply now, get qualified and get funded in a matter of days.