You aren’t sure how much longer your business can hold on without financial help. There is just one way out, and that’s financing. Before you move forward with financing, you need to make sure that everything is in order. That way, you will be more likely to get approved. What you do to prepare depends on the type of financing you’re seeking.
If you intend to get traditional financing, you’ll need to jump through some hoops. Before you go to the bank or another traditional lender, pay down your credit and work to raise your credit score. You also might need to get some collateral in place to use to secure the loan. Your collateral can be in the form of your home, business, or even a vehicle. Lenders take different forms of collateral, so talk to your specific lender about what he or she will take.
Just as the name suggests, non-traditional financing is quite a bit different. If you go with factoring or another type of non-traditional financing, your credit score doesn’t matter, so you don’t need to worry about paying down your debt. You also don’t have to secure the loan. Instead, you need to make sure that you qualify. You have to be in business for at least a year. In addition, many factoring companies will only lend you the money if you made at least $120,000 in the last year. If you didn’t make that much, you’ll need to bump up your income before applying. Once you do, you’ll be ready to apply for factoring.
No matter what type of financing you apply for, you do need to prepare. Take some time to get ready and then move forward with financing. Then, once you finally get your money, you can breathe a sigh of relief. You’ll finally have the money you need to run your business.