It’ s great running your own business.
No kowtowing to sometimes arrogant or obnoxious bosses. You don’t get to be a slave of the clock. Your time is your own.
The big BUT is… is your business going well?
Is it growing at a good pace or is it at a standstill because you lack the additional funds it needs?
Do you not know what to do to bring in more sales and bigger profit numbers?
If your business is hindered because you don’t have enough staff or and can’t afford to buy new equipment to meet the demand, it’s about time you considered a small business loan. You’ll be able to bring in the dynamism you need to grow and improve your business.
What’s a small business loan?
A small business loan is exactly what is sounds like.
It’s an amount of money lent to a small business owner (or owners) based on a pre-set agreement to pay back the full sum plus interest over a specified time frame.
It’s an effective business tool entrepreneurs use to prop up their business.
How can I qualify for a small business loan?
To qualify you’ve got to have a good personal credit score though, along with a track record of regular, on-time payments of debts and some proof of sound management of your finances. Just so you know, here’s how most lenders see credit scores:
781-850 – excellent
661-780 – good
601-660 – fair
501-600 – poor
It should help too if you’ve been in the business for at least two years with such business bringing in some fifty thousand dollars ($50,000) or up a year.
But what can I use a small business loan for?
The true, real, no-beating around the bush reason?
To make more money.
Money begets money.
A small business loan used to rent or buy bigger, more prolific equipment equates to more sales, which means more money.
Investing it in persuasive advertising and promotions spells more customers, which means more money.
Using the loan to hire people with expertise or for training leads to better servicing of customers, ergo higher satisfaction levels, higher repeat purchases, which means more money.
Essentially, a small business loan can help your company to really get going and growing faster and bigger.
Let’s see how an entrepreneur used a loan to help her business thrive.
From Small Time Teacher to Language Academy
In a small modest residential community in the outskirts of San Idelfonso, California, Lisa Montero decided to put up an English tutoring business.
She felt the many Cuban and Mexican immigrant families who lived in and around the area and nearby subdivisions could provide an opportunity to augment her retiree’s monthly pension.
True enough, two years later, she was having more students, both young and old, than she could handle. She needed to hire three more English experts to address the unwieldy student-to-teacher ratio. But she didn’t want to touch her pension.
What she did was to take out a small business loan, hire the English teachers and continued to grow her earnings.
Today, she’s looking at converting her tutoring business into a real school focusing on learning English, Spanish, Chinese, Korean and Japanese languages.
Success is spelled: Small Business Loan
Thanks to a small business loan, Lisa Montero and many other business owners like her have been able to, at worst, sustain their business and, at best, expand their business and improve their profitability.
Time is of the essence. If your business isn’t moving too well because you can’t address certain aspects of it that require funding, then think “small business loan”. It doesn’t have to be hard to improve your business, it just takes some time, and planning.