If there’s one thing SMEs need lots of, it’s money. More than 50% of startups fail in the first year because they fall into debt. Once they cross over into the red, it’s almost as if there is only one way to go. Finance is essential, but so is a quick loan. After all, the creditors won’t wait around forever until you have the money to pay. Because applying for finance is a long process, it’s essential to learn how to fast-track an application.
This is what small business owners need to know.
Digitize The Books
Before a lender signs off, they need to see your accounts to ensure you’re not a risk. Yes, you can make copies and send them off, but it’s time-consuming. The quicker option is to make the firm’s books available online. Then, the lender can access the information at the drop of a hat and analyze your chances in a matter of seconds. The key is to choose an online bookkeeping service which allows you to share data with financial institutions. Many do but QuickBooks Online is one of the best.
Forget The Banks
Small businesses assume a bank is the only option for a loan. Nothing could be further from the truth because a small business loan is available from a variety of sources. You have to figure out which ones offer the best deal and sign on the dotted line. For instance, a peer-to-peer lender is flexible and understanding. Plus, they have a big budget and can lend a serious sum. But, the interest payments may not suit your needs. In that case, a credit union is a fantastic place for a small loan because of the low rates.
Lenders are meticulous as one detail could change the outcome of the application. Therefore, it isn’t rare for a loan to get rejected because of a simple mistake. It is easy to say that they are too strict, but you know the rules. Every detail needs to be correct and up to date at the time of the application. Otherwise, you could spend weeks correcting info before the lender even considers the pros and cons. The trick is to read the instructions and then fill out the boxes.
Run Up A Credit Card
The first thing to note is that this is a dangerous way to fund a business. Whether the company succeeds or fails, the debt will be yours for the foreseeable future. Yes, you are liable and not the firm. Still, it is easy to obtain a credit card with a large limit and start spending. In a perfect world, the best way to use a personal card is when you don’t have cash. Say the business is due to get paid, you can use a MasterCard to make a payment and reimburse yourself at a later date. Or, you can exploit the 0% promotion and think about the consequences later.
Funding doesn’t have to take an age. With these tips, it could come through quicker than you imagine.