Why the Right Small Business Lender Will Help You Grow

CleverDude_cosignpicFor small businesses, it is kill or be killed.  To be clear, I am NOT advocating murder.  I make this point to highlight how important it is to position your business to survive and then to thrive.  A critical aspect is finding the right small business lender who will help you grow.  It does not matter if you need $5,000 or $100,000, your lender of choice should be able to grow with you by providing flexible programs.

According to a report on global entrepreneurship, one of the top reasons small businesses fail is due to problems in getting the financing they need.  As the famous saying goes no bucks, no Buck Rogers.  It couldn’t be more true.  If you can’t get the money you need for your small business, then you will just be shuffling from payment to payment.  This is actually worse than living paycheck to paycheck as there is no guarantee the next order will walk through your doors.

Financing plays an important role in the success of your enterprise.  Think of the lenders who specialize in small business finance as your money suppliers.  Sure, you need to have customers, and they will supply you with money as well.  But sometimes you need a little extra.  This is where small business lenders step in.

These lenders have programs specifically designed to meet the needs of small businesses.  Loans can vary from equipment loans to lines of credit, and even merchant cash advances. Importantly, these loans can usually process in a day or two and the repayment is generally tied to a percent of your daily sales.

In this way, you can more accurately forecast how you will repay the loan without having to worry about making the payment each month.  This gives you piece of mind to do what it is you do best keep your customers coming back.

Many of these lenders will even walk you through the process of getting a loan for your small business.  As such you will not be on your own and this will allow you the opportunity to learn about how their loan programs work.

As mentioned, you should consider these lenders as your money suppliers.  That is, they are there to provide you with the short-term cash you need to grow your business.  As such, you should approach any small business lender as an opportunity to build a lasting relationship.

Such as relationship will prove extremely useful and they will be there to help you as your business evolves.  Maybe you need a merchant cash advance to begin.  But in the future, your needs could change.  Working with the right small business lender means you can go back to them for all sorts of financing options.

This could include leveraging your receivables or getting the funding you need to make that emergency equipment purchase.  The right small business lender will have options which cover all of these needs without the red tape of big banks.

So what should be your next move?  The first step is to have a plan for your business.  Now I don’t mean a 200-page business plan. After all, you are running a small business, not General Electric.  But you should have an idea of your business’ cash flow cycle, what you will need the money for, how you will pay it back, and how this money will help you grow faster.

Once you have looked at your business then you want to reach out to potential small business lenders and learn about their programs.  In this way, you will gain a better understanding of how they work and what they have to offer.

The decision is yours.  One of the best tactics for any small business is to establish lines of credit as soon as possible as this will open the door for larger loans later.  The same applies to establishing relationships with small business lenders.  If you want to work with one who will help you grow, don’t just wait until an emergency.  Establish a relationship early and keep working with them.  This approach will pay off in the long-run as you will have a solid small business lender who will help you grow.

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