Loans aren’t as intimidating as they look. Once you have a functioning knowledge of your credit score and personal goals, they’re just another means to an end.
Running a small business is hard enough without asking for help. Although small businesses make up the majority in the United States, many of them go belly-up within the first year. This is due to several factors, ranging from late payments to overly ambitious goals. Manufacturing loans are a practical tool to give you the resources you need in steady amounts. Whether it’s marketing funding to get your brand out there or inventory financing during the holidays, there’s always an option.
Been turned down for a loan? Not sure if you should make the plunge? Here are five facts on small businesses today and the function of manufacturing loans.
Most Small Businesses Fail Because Of Money Management
You could have the best marketing tactics in the world and still face bankruptcy. Why is that? According to ongoing studies on small businesses, 80% of all businesses fail because of cash flow problems. This can mean receiving late invoices (an extremely common hassle), failing to budget correctly, or not asking for loans when needed. Getting funding for your marketing or construction endeavors isn’t just a luxury. It’s how you build the foundation of a long-lasting business.
Business Funding Isn’t Always A Straight Path To Follow
This might be a problem you’re familiar with. The NSBA conducted a survey asking businesses about their thoughts on funding, finding nearly 30% of respondents saying they weren’t able to get the support they needed. Overall, around 35% of small business owners report a lack of funding to be a top business challenge. How will you serve your customers adequately if you’re not able to attend to the basic needs of your business? Manufacturing loans are designed to fuel your machine, down to the last detail.
There’s A Different Credit Score For Businesses
This is a detail a surprising amount of people don’t know about. While everyone has their own credit score, businesses have a separate one entirely — one study found 45% of business owners don’t know about their business credit score. The key to getting a successful business loan is being able to prove to lenders you have your goals aligned with numbers. According to a Federal Reserve survey, just 40% of American business owners applied for a loan in 2017. More than half of all requested loans are for less than $100,000.
Running A Business Looks Different For Everyone
There’s no shame in admitting you need help. Today 60% of small business owners feel they aren’t knowledgeable about accounting or finance, which is even harder when they come from a small team. Not everyone will require the same loans, either. Some businessowners are very comfortable with marketing, but not so much with manufacturing. Others are perfectly fine with talking shop, but have a hard time getting their name out there in a way that’s both natural and consistent.
Your Business Has A Shot At Succeeding Just Like Anyone Else’s
When 40% of small businesses are profitable, there’s no reason not to reach out for manufacturing loans or payroll funding. This gives you a breather and allows you to get all the basics under your belt. By the time you’ve achieved a certain standard for your services, paying back your loans becomes a guarantee. Sit down with a loan expert, hash out the details of your business credit score, and see which loans you qualify for. Just a few extra thousand dollars in your pocket could be your ticket to success.
Small business loans for construction companies, at the end of the day, are just a tool. How can you level up your small business game in 2020?