5 Reasons Not to Fear a Small Business Loan
It’s common for small business owners to be wary of the idea of taking out a loan when business funds are low, but borrowing can help your business get through a slump, expand and continue on to thrive in the future.
You Have a Choice in Lenders
Banks are the first types of lenders that most small business owners think of when considering a loan, but the modern financial landscape has expanded to include a wealth of alternative lenders. If you need a faster, less complicated option, alternatives can bring in cash when it’s needed most. For example, loan officers here at ARF Financial can review and approve loans within 48 hours!
Affordable Interest Rates are Available
The amount of time it takes to pay off interest is a legitimate concern when considering a business loan. A little diligence in researching lenders can help you find rates and terms that fit your budget. The time you take could result in considerable savings over the life of the loan. For example, some loan providers will penalize you for paying off a loan early while others will charge predatory rates that will leave you in a worse place than you started. This is particularly true when it comes to Merchant Cash Advance companies since they operate in an industry that is unregulated.
Investing in Marketing Can Yield a Strong Return
One of the paradoxes of being low on cash flow is that you can’t afford to market your business when exposure is most essential. Loans provide the cash you need to continue expanding the reach of your brand image to a wider audience. Analyze your current marketing techniques, and focus on the ones that give you the best ROI to increase conversions and improve profitability.
You Keep Control of Your Business
Getting money from investors instead of a bank or other lender means giving someone else a say in what goes on in your company. Usually, you wind up being tied to investors for the life of your business. With a loan, you never have to follow someone else’s lead when making business decisions and are freed from your relationship with the lender the moment the last payment clears.
Calming Your Fears
As long as you check your budget to make sure that you can cover payments and approach lenders with a solid plan in mind, a business loan can help you meet or even exceed your goals. Get past your fear of borrowing and get ready to launch your business into greater success. Contact us today to speak with a loan officer in your area about your financing options.