“Finance without strategy is just numbers, and strategy without finance is just dreaming”
— E. Fabor

Capital for your Business

Understanding your Options

Running a business isn't cheap, and not everyone has enough liquidity to fund all of their business functions, projects, and miscellaneous expenses. If you’re considering a commercial loan, you are not alone. Per Fed Small Business, 59% of small businesses (employer firms, not nonemployer firms) applied for a loan in 2023.

The good news is that there are plenty of commercial lending companies today that offer unsecured loans with fast approvals and minimal requirements. In other words, the vast majority of business owners have easy access to capital like bever before.

If you have a reasonable time frame for securing cash, you should consider these 5 things:

If you need money fast, SBC can connect you with one of the best alternative lending networks in the industry. Their experts will explain the various alternative lending products and recommend the right loan type for your business.

  • Generally speaking, if your cash flow has deteriorated to the point of your inability to meet payroll, pay vendors or utilities, then you should begin the process for obtaining a commercial loan. In addition, if you’re presented with an exceptional business opportunity that requires immediate cash, then you should begin applying for commercial lending options.

  • This may be the most important question because obtaining a commercial can not only be costly, but can quickly lead to business failure. You must have a detailed plan that outlines the specific steps and milestones. Simply put, your investment should not only cover the payments but support any additional resources needed to accomplish your goal. Calculate a realistic return on investment.

  • If you don’t have an immediate need, then you should consider alternative ways to generate cash. If you’ve tried several new strategies/tactics in the past year, determine how effective they were (Calculate ROI). If you think you’ve exhausted all of your options, then seeking a commercial loan may be your best option. If not, explore other solutions, strategies to see if any opportunities exist.

  • As close as you can, you must calculate the exact amount needed to achieve your goal. Too much will cost you more in the long run and increase risk, while too little could derail your investment.

  • You must consider whether the investment you intend on making is going to present a reasonable return. In other words, is obtaining a loan worth the debt risk? This consideration is different from #2 in that here you must consider the time element in the return on investment. If your payback time exceeds your monthly payments, then you’re at risk of decreasing cash flow, which is the very thing that started this process.

If you’d like to know more about alternatives to commercial loans, or understand more about the 5 considerations, click on the SBC calendar link below to schedule some time. This is a complimentary service.