Ask a small business owner to tell you about their experiences applying for a loan at their local bank, and the majority will tell you it just never came to fruition.
Establishing and using business credit is crucial for businesses to grow, and to cover their cash flow downtimes. Unfortunately, businesses have been forced to utilize expensive capital that under normal terms would often be long-term debt but are stuffed into a short period of repayment.
Owners often find themselves using business credit cards and merchant cash advances to bridge their cash flow shortfalls, some of which are caused by existing merchant cash advances. The result is a financial treadmill that does nothing to promote exponential business growth. The business finds itself playing catch up, and once this starts it becomes very difficult to stop.
Free up and optimize your business credit vehicles.
The good news is that there is a way out from this situation. The SBA Small Loan Advantage initiative was designed to replace high cost capital for small businesses. One way it achieves this is by allowing you to consolidate these high cost debts, providing you with a clean slate to then begin using business credit for exponential business growth.
We must start by making certain all your current business credit is reporting to the proper credit agencies. Updating your company information and joining an agency such as Dunn and Bradstreet are very important. It is agencies like theirs that the SBA pulls information from when scoring an applicant business.
Once this is done, your next move is to apply for the SBA SLA loan. Once you pass the credit score thresholds, you are on your way to exponential business growth. The SBA loan will clear out all your business debt. You can pay-off your business credit cards which will allow you to begin using business credit vehicles like these for their intended purpose; short term borrowing.
With your updated credit agency reports, new SBA loan, and zero balances on the business’ revolving credit, you are now ready for exponential business growth.
Here is how:
- The reduction to your payments from your new SBA loan alone will immediately increase your cash flow. The SBA loan frees up all the cash that you had been allocating to pay your business debt.
- With this freed up cash flow and your clean slate of zero balance credit cards, you can now allocate resources to expand your business. The zero balance credit cards can now be used for short term purposes and your freed-up cash flow can keep their balances low. Now you are using your revolving business credit how it was intended to be used.
For more information, visit the Case Studies section, and see the many different industries in which SBA Loan Program has helped small businesses begin using their business credit to promote exponential business growth for their clients.