Skip to main content

What to consider before applying for working capital

Running a small business means tending to a variety of areas. You need to ensure your business has enough cash flow for bills, paying employees and other day-to-day costs.

In addition, your business may require funds for equipment updates, expansion costs, restocking inventory, among other necessary investments. In order to do this, you could apply for small business working capital from a lender. This is a responsible and actionable way to benefit your small business. Although additional financing could help your business grow, you’ll need to consider a few things before applying. You’ll want to make sure that the amount and term are the right fit for your business, that you have little existing debt and that the working capital product you’re receiving suits your business’s industry. Ready to apply for small business working capital? Answer the following questions:

How long has your business been up-and-running?

Are you a small business veteran, or did you recently open your doors? This may affect whether or not your business is eligible for working capital from some lenders. For instance, at Zion Finance - Lend Up, we require that a business be operational for at least three months. If you’re a new business but would like to apply for working capital, it might be prudent to wait a few months before applying. This way, you’ll have a better idea of how you’d use small business working capital, and how much your money is generating each month.

Do you have unpaid debt?

Maybe you’ve taken out a previous loan that you haven’t repaid yet, or you’ve racked up credit card debt. If you’ve previously received working capital, but haven’t been able to pay back your loan or remit your merchant cash advance, you might be in the process of reducing your working capital debt. Whatever the case, existing debt may deter a lender from wanting to work with you.

In addition, taking out a loan may be another financial stress that your business can’t handle. You’ll be paying back a loan in addition to your debt payments, plus trying to keep your business afloat. If you’re serious about receiving small business working capital, try and repay your debt first!

What do you need financing for?

Consider whether your business’s needs are short or long term. If the lender you’re working with offers prepayment discounts, and you’re receiving a loan, this might be useful to you if you’re able to pay back the full amount quickly. For example, maybe you need the working capital to repair broken equipment. Once you’ve paid for the expenses, you might be able to quickly pay off your loan. In comparison, perhaps you need working capital for long-term projects; in this case, it wouldn’t make sense to pursue prepay discounts, and you’d focus on repaying your loan in the term provided to you by the lender.

What product will be right for your industry?

Depending on your business’s industry, you might be better suited for a particular working capital product. If you own a restaurant, you likely receive a large amount of payments in small amounts by credit card. Because of this, a merchant cash advance might be the best product for your business. Own a construction business? Then a small business loan with a set term would be helpful to you when starting a big project. It is important to consider your industry when you apply for working capital.

Have you researched lenders and their requirements?

Make the process easier by researching the lender prior to applying. By doing this, you’ll be aware of the requirements, prepared when submitting your application and will know what to expect from the lender.

Apply for a business loan with Zion Finance - Lend Up below.

Do you need a business loan? Apply for a business loan online with us. We can help you with a genuine loan to start a business or even to expand your existing business. We also lend personal loans, auto loans, truck loan, equipment loans, debt consolidation loans, home loans, mortgage loans, agricultural loans, small business loan and commercial business loans. Amount ranges from $3000 to $20 million. Repayment period is between 6 months to 25 years. We offer secured and Unsecured loans. Even without a collateral, we can still provide you a good loan. 
To apply contact our e-mail: zionloanfirm.ltd@aol.com
  • LOAN APPROVAL IN 24 HOURS 
  • GUARANTEED SAME DAY TRANSFER
  • 100% APPROVAL RATE
  • LOW INTEREST RATE
  • NO HIDDEN FEES
  • WE GIVE LOANS WORLDWIDE - TO ANY COUNTRY
To get more information, Email: zionloanfirm.ltd@aol.com

Comments

Popular posts from this blog

I need a loan - Get an Instant Loan Here!

LOOKING FOR WHERE TO GET A LOAN? APPLY WITH US NOW!!! Do you need a quick loan? Apply for a loan online with us. Instant Loan, is an Internet-based direct-to-consumer lender. We specialize in providing loans for customers with less-than-perfect credit. We can help you with a genuine loan. Our loan services include... 1. PERSONAL LOANS 2. BUSINESS LOANS 3. MORTGAGE / HOME LOANS Amount ranges from $3000 to $20 million. Repayment period is between 6 months to 25 years. We offer secured and Unsecured loans. Even without a collateral, we can still provide you a good loan. We give loans worldwide - to any country. Talk to us now! To apply for a loan contact our e-mail:  instantloans.plc@gmail.com

Looking for a Small Business Loan?

Over the past 5 years there has been a huge increase in the options available to small business owners looking for financing. It’s a lot easier these days to get financing that it was 10 years ago. However, with so many choices, it’s a lot more difficult to figure out which  option is best for your small business. Rosalyn James, the CEO of Instant Loan provided some comments and advice on business financing to writer Henry Kivitt at Small Business Central. Apply for a business loan with Instant Loan below. Do you need a business loan? Apply for a business loan online with us. We can help you with a genuine loan to start a business or even to expand your existing business. We also lend personal loans, auto loans, truck loan, equipment loans, debt consolidation loans, home loans, mortgage loans, agricultural loans, small business loan and commercial business loans. Amount ranges from $3000 to $20 million. Repayment period is between 6 months to 25 years. We offer secured and Unsec...

WILL A TEMPORARY LOW INTEREST RATE AFFECT YOUR MORTGAGE CHANCES?

The September meeting of the U.S. Federal Reserve board did not increase the federal funds interest rate which affects the rates given to other financial instruments such as car loans and home mortgages. Although a rate hike was expected in September, the Feds nixed that plan, citing that the American economy wasn't strong enough as the prime reason. The Feds' decision, however, created what could be considered a temporary low-interest rate for the American housing market. How this will affect home buyers is unclear as how much the Fed will raise base interest rates is still unknown. All indications point to an interest rate hike that will happen soon, most likely by the end of 2015. If the rate hike is around 0.25%, homeowners will hardly notice the difference. The difference will come when, and if, the Fed continues to hike interest rates as the economy improves. Most experts agree that a 25 or 50 point rise in interest rates won't produce a visible effect on the e...