If it seems impossible to find money for your small business, know this: Big banks have about a 50 percent loan approval rate for small businesses, and non-traditional lenders approved 56.7 percent of cash loan requests at the end of last year.
Fast cash loans are an almost unavoidable part of running a small business, especially in the rapidly moving culture of today’s financial world. Entrepreneurs must have the knowledge and tools to secure funding from several different sources and should avoid making rookie mistakes that can keep small businesses from succeeding.
Business owners must be careful with their finances, especially when they take out cash loans. But we want to teach you how and why cash advance loans can help your business.
Check out these ten reasons cash loans are perfect for entrepreneurs.
1. It Means You’re Competitive
A 2017 study of the intensely competitive Small Business Administration’s 7(a) program found that only one in six loans awarded over a nine-year period went into default.
This federal government program is one of the most popular cash advance loans programs for entrepreneurs. Many of the businesses awarded these loans perform well for years. Interest rates are low and terms of repayment measure in the years for SBA loans.
If you get one of these, you’re likely to do quite well!
2. Your Business Is Online
With brick-and-mortar businesses failing at a rapid clip, entrepreneurs who have online businesses are likely to be able to pay back their loans faster than their offline retail counterparts.
Online business owners know that it’s necessary to be flexible and work on tight deadlines. Quick cash loans could be the answer to a much-needed update to your virtual business. The more you have to invest, the more customers you can reach in a tech-friendly way.
3. You Have Other Debt
You might need to consolidate your debt, and sometimes cash loans are the best way to do it. It all depends on your specific business and needs, but there are cash loans out there that could pay off higher interest debts and help you on your way back to even.
4. Your Equipment Breaks
Fast cash loans are perfect for the on-the-go entrepreneur in need of new equipment. Sometimes, you will experience a setback due to failing machinery. A leading indie t-shirt company had this problem when its screenprinting machine died unexpectedly.
Their answer? A short-term cash loan for their business.
You need to make sure you have what you need for your business to function, or you’ll lose more money and could potentially close. Find a cash advance loan to get your business back up and running in no time.
5. You Can’t Make Payroll
Many small businesses have one or two employees, not including the entrepreneur or business owner. If you’ve ever been short on cash and can’t make payroll, you may need to take out a loan to pay your people.
Make sure your business is in good shape, and learn how to plan better for the future. But cash advance loans are helpful if you’re short one week and your employees count on their check.
6. You Need Cold Hard Cash
It could be for any number of reasons, but many times small business’s vendors will provide a discount for a cash payment or require a cash payment to release equipment or materials for a job.
No matter the reason, if you are need of actual cash, that’s what cash loans are best for! Just remember to pay them back as soon as you can to avoid high fees and interest rates.
7. You’re Having Cash Flow Issues
We’ve all been there. A customer-usually one responsible for a good amount of your monthly or weekly cash flow-will pay late and jam you up. While you’re seeking restitution from your customer, bills keep coming in.
That’s where quick cash loans come in. These short-term solutions can help you in a cash crunch, and you can pay bills, employees, or other payables while you wait for a large receivable.
Hopefully, this doesn’t happen too often, but you should plan on a cash flow snafu at least once a year.
8. You Have Bad Credit
If you can’t get a personal business loan because your credit score isn’t over 800, don’t worry. You might qualify for cash loans, even though those are designed for short-term use.
Finding a way to structure your business so you’re not reliant on credit cards is hard, but cash loans can be your answer. Short-term lending has saved many small businesses while their owners build their credit for future leverage!
9. You Have No Assets or Collateral
Online business owners know the pain of not having physical assets or collateral all too well. And other entrepreneurs may not feel comfortable putting their house or car on the line.
Enter cash loans.
These quick loans don’t rely on your hard assets or collateral but on your ability to pay them back in a short amount of time. If you can do that, you’re a good candidate for a quick loan.
10. You’re Growing… Fast!
This is the best problem to have for entrepreneurs, and one fast cash loans can help with immensely.
Often during buying surges or holiday seasons, many businesses will see astronomical growth they didn’t (or couldn’t) plan for. Quick loans can help purchase extra inventory and serve their customers efficiently, which should result in long-term gains.
Fast cash loans will help businesses experiencing this jump in popularity and can even help it ride-and capitalize on-the wave.
Finding Success with Cash Loans
Every business has different needs at different times. And no matter how much you plan, every business owner will experience an emergency or spontaneous event-whether it’s good or bad.
You can find success with fast cash loans for your small business. Trust yourself to know when a quick infusion of cash will be exactly what you need to get back on your feet or capitalize on unplanned success.
Want to learn more about loans?
Check out our five tips on how to secure a small business loan.