If you have a small business, you might be feeling like the costs are adding up. After all, there are a lot of financial needs you have to keep things running. It is vital that you get the right financial blueprint in place if you are going to succeed. If you don’t, you might find that your bills aren’t being taken care of and your quality of service declines. So if you are in need of some additional financing for your company, consider these intriguing options:
First Things First: Know Your Area Regulations
You will have different rules governing your loans or financial choices in different parts of the country, thanks to tax laws and income laws that vary state by state, county by county, and city by city. For instance, a payday loan in Arlington, TX might affect your financials differently on your balance sheet than an angel investment from New York.
Types of Financial Opportunities
Payday Loan
This loan allows you to get an advance on your paycheck. It is not only reserved for employees as many people commonly believe it. Instead, if you have a proven source of steady income in the form of invoices from clients, you can also qualify for a payday loan. The process is simple and easy and allows you to get necessary cash flow injected into your business sooner rather than later. However, we strongly recommend against this! The interest rates are unconscionable and many people who don’t pay the loan back immediately end up paying many times the amount of the loan.
Angel Investment
To be an angel investor, people need a net worth of $1 million. This investment means they can extend you capital in exchange for a piece of your business, whether that’s 1 percent, 70 percent or any amount you agree upon. The key is that these investors are also often advisors who can help you navigate tricky waters. There are Angel Investment communities throughout North America that can facilitate the process if you or your client fits the profile the particular group is seeking.
Bank Loan
If your company is making enough sales and has decent credit, you could qualify for a bank loan. Keep in mind that this kind of loan is somewhat more challenging to get your hands on than others like the payday loan or even investment but can be a good long-term option.
Business owners who have a smaller venture are often in need of a financial boost. It is something that is crucial to understand regarding the options available to you. If you don’t take advantage of opportunities, you could find yourself out of business and of customers who migrate elsewhere. So consider the financial options above to make sure you can enjoy higher profits now and into the future.
These loan types are just the tip of the iceberg. For more details regarding your situation, contact a Valcor Consultant today.