Why would you need a fast business loan? Before going out and searching for “where” to get additional working capital, first take a look at “why” you actually need it. Your goal, before bor
rowing money, should be to formulate a plan to prevent a similar set of circumstances from affecting you in the future. If you don’t make changes now, how can you be certain you won’t just end up in the same position again? Avoiding that begins with the following steps:
1) Balance the Checkbook. The amount of money that is showing up in your bank account today is not your actual balance. It’s important to balance the checkbook and get a true picture of what your bottom line is. You may find you need to borrow more or not borrow at all when you add up all your deposits and withdrawals.
2) Create a Budget. How much do you take in every month? How much do you spend? Where can you cut back on the latter and increase the former? Small business owners se
eking a fast business loan often make the mistake of not adjusting their spending habits before the new money is deposited.
3) Open a Savings Account. Do you have cash reserves? Putting a few dollars into an interest bearing savings account, money market, or other “rainy day fund” account will help prevent financial distress when times get tough again. If you haven’t done it yet, add this line item into your budget.
4) Pay All Your Taxes. Nothing derails a business faster than a tax lien. Don’t be disillusioned by rumors that an LLC or C Corporation will protect you from the collection of back taxes owed. Make sure you’re up to date on all moneys owed so you can plan appropriately going forward.
Sources for Getting a Fast Business Loan
You’ve heard all this before, right? These steps are not a mystery. They are a formula that has been written and re-written countless times over. So why have we posted them again? Before taking out a loan or cash advance it is essential to follow each of these steps and make sure you’re in a position to use the money wisely and to pay it back on time. Can you say for certain you’re in that place now?
Small business loans require capital and collateral. You can get one if you have both of these, but you have a solid capital footing or credit rating without following the steps above. Once you’re in that position you can borrow from a bank or lending institution, but chances are you’re not quite there yet.
A merchant cash advance from a firm like Principis is typically a better way to go. This funding source is based on your credit card receipts. Principis will add up what you’ve taken in over the previous weeks and determines an amount you are eligible for based on that number. Payments are then taken out of future credit card payments, at a set percentage rate.