Why Taking a Small Business Loan Is Crucial For Your Business?

Why obtaining a Small Business Loan is crucial for your business?  The answer is quite obvious, every business needs money to start and operate.  Growing a small business is not a small task.  Entrepreneurs have to confront issues that threaten the very existence of the business.  Among many difficulties, securing a small business loan to run and grow a business is difficult of them all.  How and why a loan is crucial for your business? Let’s discuss it in detail!


Why Taking a Small Business Loan is Crucial for Your Business?

Business loans are taken for several reasons. Your business may need a loan to maintain operations, start a new branch, invest in latest equipment, or any number of reasons.  Not only these loans are crucial for a business, but they are easy to obtain as long as your business has a good credit score or stable income. One of the biggest advantages of taking a business loan is that companies can use it to step up their working capital during economic times.

Those companies which take a business loan to expand often has a large income, taking out a loan allow them to manage cash flow, and to cover unexpected expenses.  They can make loan payments by using the income generated from expanding the business.

Small businesses that use credit cards are likely to pay more interest than those who receive loans from banks and alternative methods. A number of lenders are available these days. Every lender has numerous options, and most businesses can easily find a loan fit to their needs.  Many experts believe that small loans are crucial for five main reasons, and they are:

  • Easily Accessible and most Convenient: As compare to large sum, small loans are easily accessible and lenders don’t have much requirements on these.  After being a customer for many years, your bank feels safer to give you a small loan. Not only they are easily accessible, you can get them as quick as in 24 hours.
  • More than one option: Most banks advertise various schemes for entrepreneurs who are running or setting up a business. The real earning for banks comes from these small loans. Not only banks, but local lenders also prefer giving small loans over standard or long term loans.
  • Non profit Sharing: Angel investors and venture capitalists may agree upon providing a small loan in exchange for ownership, share of the profit, and right to make decisions. Banks don’t ask for these things.
  • Low interest rate: Sometimes It may be tough to get a small business loan, but they are good investment.  Most banks and lenders provide these loans at low interest rates as compared to credit cards.  You can also turn to community lenders.
  • Loans with benefits: Small businesses which take loans from banks enjoy tax benefits, percentage of profits is used to pay the small loan is relived from tax.

Where do i apply?

KABBAGE.COM#1 Online provider of small business loans.  Kabbage puts the power of business growth back in your hands by giving you convenient access to working capital.

Enjoy ongoing access to your line, and take the funds you need day or night. Pay only for what you take and draw against your line as often as once a day.

Select the amount you need and they’ll deposit working capital directly into your bank or PayPal account. No waiting in line.

Requirements: 1+ year in business & $50K annual revenue.

Lines of credit from $2,000 to $100,000.

A+ Rating with the Better Business Bureau

LENDJUNCTION.COMAlthough business loans through banks can sometimes offer good terms, qualifying for a bank loan is much harder than qualifying through Lend Junction, and Lend Junction takes a lot less time.

Instead of spending your time filling out mountains of paperwork and determining what you can put up as collateral, you can focus on growing your business.

LENDJUNCTION is offering 3 kinds of business loans with very good rates and term.

Business Line of Credit – $2,000 to $100,000 (Term: 6 months per draw)

Business Term Loan – $5,000 to $250,000 (Term: 4 months to 24 months)

Loan Based on Revenue – $5000 to $250,000 (Term: 4 months to 18 months)


Share this article:

Related posts