Skip to main content

The Biggest Mistakes in Small Business Loans



The Biggest Mistakes in Small Business Loans 

The right small business loans make a significant difference in your business’s success.  As a new business owner, you realize that there is an increased importance of having the necessary funds available to you.  When you don’t have enough funds, you can’t handle the demand that is placed upon you and you won’t have the buying power that you need or the emergency funds to push off those very bad situations that could put your business in jeopardy.  The good news is that there are plenty of opportunities for you to make the right decisions.  To do that, learn how to avoid the largest mistakes that most individuals and small business owners make when starting their business.

Top Mistakes Made In Business

Consider the risks that you are taking and make sure you don’t make the mistakes that many others make.

•    The largest reason that businesses fail isn’t money, but poor planning.  Poor management of the business is likely the reason your business will fail.  But, it’s only one factor.
•    Another very important reason businesses fail is because of inadequate funding.  If you have too little or not enough financing, your business can and likely will fail.
•    Having enough capital easily accessible is quite important.  Businesses fail because of their inability to stay up and running when funds are tight.
•    The skills in managing those funds are just as important.  You need to make sure that the person managing money isn’t spending too much but is spending enough to keep the business running correctly. 
•    The wrong loan may be obtained.  Costly interest rates, poor terms or the wrong type of loan can cause a serious problem for any business.  When selecting a small business loan, knowing which type you need and in what amount is vitally important.

Alternative Financing Options

A great option to consider would be iSmallBizCredit “LINE OF FINANCE”. Over at iSmallBizCredit we've strategically formed a relationship with a fortune 500 payment technology company. Combining their expertise in the electronic payment industry, and iSmallBizCredit expertise in the realm of alternative business financing, we've been able to create a very simple process for all small businesses to obtain the capital they truly need without an extensive time in business, without an extraordinary FICO score, and the process takes no more than one week from start to finish with payments that fluctuate with the way your business is performing. It actually functions as a Line of Credit. Your business will always have access to capital as long as you continue to work with our processing partner. You only pay for the money that you use when you use it.

See below on how a Business Cash Advance works from iSmallBizCredit: 

Apply with us. (One page application, the last 4 months business bank statements, and the last 3 months credit card processing statements.) 
  • We put together an application for approval with our partner. 
  • After you receive approval you must move onto our platform in order for us to generate a quote. 
  • Within 24 hours of processing with our partner on our platform, we will have your quote furnished and have you funded within one week. 
  • Capital can then be accessed every 90 days within 24 hours. 
 
Miscalculations are common problems that small business lenders face.  Often, good intentions are there, but when poor management coupled with poor financial backing come together, the end result is the risk of the business failing.  You need to learn what the correct amount to borrow is.  Don’t underestimate the cost of borrowing money either.  It’s essential to put together a package that can deliver for your business not just any small business loan will work.  Consider the ability of your financial manager in these aspects.

Charles Colbert is a Managing Director of iSmallBizCredit, iSmallBizPayTech and ismallbusinesscredit.com, divisions of iSmallBiz LLC. 
A Financial Technology Platform that allows small business owners to obtain the best possible financing at the lowest possible cost.
charles@ismallbusinesscredit.com. 
Website: www.ismallbusinesscredit.com  
LinkedIn: www.linkedin.com/in/ismallbiz 
Facebook Fan Page: www.facebook.com/pages/Ismallbusinesscredit 




Comments

Post a Comment

Popular posts from this blog

Secured vs. Unsecured Business Credit Cards: Which is Better?

Secured vs. Unsecured Business Credit Cards: Which is Better?                 Having a bad credit report can surely become a hindrance in establishing your business. Most likely, you will have difficulty in trying to persuade lenders to give you a business credit account, which can be very significant for your company. Without business credit for back up, you are placing your company at a very huge threat of running out of cash and even a possible stop in its operations. Your credit score may not be very constructive to your reputation, you may have very limited options –either you get an unsecured bad debt credit card or a secured credit card . In this article, let us know the difference between these two credit cards and how they can help your business, especially if you have bad credit. The Difference between a Secured and an Unsecured Credit Card A secured credit card would basically require you to have a security deposit in the bank before you can use it. This
1 comment
Read more

Get The Capital Your Business Needs in Canada

Since we launched iSmallBizCredit, by far the most frequent piece of feedback we received was: you need to make it possible for people outside the US to obtain working capital and business funding financing. Starting Tuesday February 20, 2018, iSmallBizCredit all in one merchant platform will be available for use by any business based in Canada. It’s an integrated payment processing and business lending platform that we offer in the US now. A payment processing and merchant account platform combined with the ability to obtain business financing within 24 hours. Thanks to our friends in Canada for helping us launch!!! We've been testing our service in Canada over the winter. In many ways, launching in Canada is a big step for us. At iSmallBizCredit, our extensive industry knowledge and technology has allowed us to revolutionize the alternative funding system, making working with us a seamless experience. We have one goal in mind which is to provide the best poss
1 comment
Read more

THE FLEXIBLE SOLUTION FOR SMALL BUSINESSES

THE FLEXIBLE FINANCING SOLUTION FOR SMALL BUSINESSES Financial Technology + Main Street = Growth WWW.ISMALLBUSINESSCREDIT.COM Volume 3, Number 1 iSmallBizCredit The Smart Choice in Business Financing Having access to funds at a moment’s notice can sometimes make the difference between a business’s success or failure. That’s why merchants love our Line of Credit. It gives them the flexibility to act fast. When opportunity comes knocking or there’s an unexpected expense, our Line of Credit offers 24 hour access to loan drafts. Merchants can qualify for line of credit amounts up to 725,000 with no collateral required. The initial line can be approved in less than a week with 24 hour turnaround on loan drafts after that. With this type of financing, your clients can have the freedom to draw funds as needed, paying interest only on the money they take. It Pays to Be Prepared Even without an immediate need, smar
Post a Comment
Read more