In addition to being a temporary fix for cash flow challenges, external business financing is a strategic tool that companies at all stages of business growth can utilize.
It’s not always quick, or easy, to apply for or seek financing when you’re ready and recognize that you need it. It’s critical to recognize the gap early to have ample time to complete all the necessary pre-funding activities.
Clearly defining the future of your business and the related requirements allows you to you see the areas that could benefit from additional funding. Having this information before you need it helps you to better plan for accessing the capital you need for your business continue to grow and compete.
All clients go through a discovery process with one of our trained staff. The discovery process is where we ask you a series of questions and give you the honest truth about your file. Our staff will figure out all the different financing options for you. Each client’s situation is different. Clients are in different industries and have different credit scores, gross sales, revenue and profit margins. They make and show different amounts of income depending on corporate structure, equity and fluctuations in cash flow.
Business funding is not a one size fits all model. This is what our trained staff is here to determine. Our capital comes from hundreds of different sources (Banks, wholesalers, crowdfunders, private lenders and investment groups) and they all have different underwriting criteria.
Call us today to find out how we can help your business get the funding it needs! 1-888-294-2584
Thinking of Starting a New Business?
Now is the time! With our society ready to get back in action (safely), new business concepts are quickly emerging with creative flows for serving the public without the high risk of spreading the virus. Put your innovative business concepts into play, and connect with us to get the funding you need to start your newest venture!
Financial restraints have been a complaint for many of the dreamers, limiting themselves to their immediate funds. There is an alternative. If you have the dreams and decent credit, Small Business Loans and No Doc Loans are available to you. Our goal is to provide you with the knowledge you need and the resources available to make your dream a reality. Give us a call – we have the education and the perspective to help you obtain the loans you need for your small business. Visit our website or give us a call to find out what financial backing is available to make your business soar!
Unsecured Finances has over 10 years in the consulting business! We specialized in educating and assisting clients on acquiring Unsecured Business Loans and Start-Up Business Specialty Loans including; Unsecured No Documentation (No-Doc Stated Income) Loans, Unsecured Business Loans, and Unsecured Start-Up Business Loans and Lines of Credit from $10,000 to $500,000 without Assets.
Apply on our website to find out if you qualify, or call today for a free consultation: 1-888-294-2584
Starting out a business looks different for everyone. Maybe you have enough capital to get started, maybe your overhead costs are very low or non-existent. Perhaps you needed a business loan to get started in the first place. If you find yourself falling in line with the first two categories, there will come a time where you should start to consider other funding options. Flexible financing helps keep your business in front of your customers. It also provides a reliable source to help you consistently cover your normal working capital requirements. But how would you know if now is your time?
Growing or expanding your operations. Whether you’re thinking of adding product lines or staff, expansion typically includes additional operational costs. Many of these costs will be incurred before you begin to bring in new revenue. If you’re adding new sales staff, for example, how will you cover their payroll in the short term?
Going through difficult times or experiencing cash flow problems. While the goals for your business are most likely centered around continued growth and increased revenue, there may be setbacks on your path to meeting these goals, such as outstanding customer invoices or an unexpected repair bill.
Needing additional equipment or assets for a real estate transaction. Purchasing real estate, renovating your existing space, or refinancing your real estate debt can go a long way toward growing your business. However, real estate and construction-related transactions often require specific and/or unique types of funding.
Using your personal credit for business expansion. Using your personal credit, like a credit card or Home Equity Line of Credit, to finance business growth can negatively impact your credit score. This can put your personal creditworthiness at risk and hinder your ability to secure future credit.
Lacking cash flow to support your rapid business growth. Rapid business growth is a positive sign, but it can sometimes be accompanied by cash flow constraints. The growth could be increasing your overhead and costs faster than you can bring in the cash to pay for them.
Having the money in place in advance can make these activities much less stressful, especially if you need to pay your bills before you have the income to cover them.
All clients go through a discovery process with one of our trained staff. The discovery process is where we ask you a series of questions and give you the honest truth about your file. Our staff will figure out all the different financing options for you. Each client’s situation is different. Clients are in different industries and have different credit scores, gross sales, revenue and profit margins. They make and show different amounts of income depending on corporate structure, equity and fluctuations in cash flow.
Business funding is not a one size fits all model. This is what our trained staff is here to determine. Our capital comes from hundreds of different sources (Banks, wholesalers, crowdfunders, private lenders and investment groups) and they all have different underwriting criteria.
Call us today to find out how we can help your business get the funding it needs! 1-888-294-2584
Thinking of Starting a New Business?
Now is the time! With our society ready to get back in action (safely), new business concepts are quickly emerging with creative flows for serving the public without the high risk of spreading the virus. Put your innovative business concepts into play, and connect with us to get the funding you need to start your newest venture!
Financial restraints have been a complaint for many of the dreamers, limiting themselves to their immediate funds. There is an alternative. If you have the dreams and decent credit, Small Business Loans and No Doc Loans are available to you. Our goal is to provide you with the knowledge you need and the resources available to make your dream a reality. Give us a call – we have the education and the perspective to help you obtain the loans you need for your small business. Visit our website or give us a call to find out what financial backing is available to make your business soar!
Unsecured Finances has over 10 years in the consulting business! We specialized in educating and assisting clients on acquiring Unsecured Business Loans and Start-Up Business Specialty Loans including; Unsecured No Documentation (No-Doc Stated Income) Loans, Unsecured Business Loans, and Unsecured Start-Up Business Loans and Lines of Credit from $10,000 to $500,000 without Assets.
Apply on our website to find out if you qualify, or call today for a free consultation: 1-888-294-2584
When you are applying for a business loan, it helps (and is often required) to have a prepared business plan. This type of plan shares hard data about your business’s current success as well as forecasts for how the proposed loan will help you achieve continued growth and meet future financial goals.
Let’s talk about what should be in your business plan.
A strong business plan for a loan application will include the following elements:
Cover Page and Table of Contents
Executive Summary
Company Description
Market Plan and Analysis
Organization and Management
Service or Product
Marketing and Sales
Financing Analysis
Funding Request
Appendix
1. Cover Page and Table of Contents
Your business plan for a loan application is a professional document, so be sure it looks professional. The cover page should contain the name of your business and your contact information. If you have a logo, it should go on the cover.
Both lenders and you will appreciate a table of contents and page numbers in the business plan for a loan application, so they can quickly find specific sections. If you are delivering your plan digitally and not physically, be sure your table of content is clickable and links readers to the correct sections.
2. Executive Summary
It’s common for business documents to carry executive summaries at the beginning so that busy people have the key takeaways from a larger document immediately at hand. Your reader shouldn’t feel they have to wade through a large document for crucial information.
Briefly summarize the entire business plan on a page. Describe the company, your product, and why you started the company. Include your chief competitors and why your product will succeed against them. If relevant, discuss the economic climate vis-à-vis your customers and products.
3. Company Description
The company description should include a mission statement, the company principles, any strategic partners, and your corporate structure. It will be relatively short.
4. Market Analysis
After you’ve told the lender what your company does and who does it, you’ll want to provide a competitive analysis of your market. Let’s be clear: the market analysis is not a full marketing plan. That will come later. The market analysis focuses on the qualities of the market, not a detailed plan of how you’ll capture it. Identify the existing gaps that your business will fill. A business plan’s market analysis should include:
• An industry overview and outlook
• Any differentiation in sector and niche
• Information on your target market
• The company’s marketing strategy and how it will make your company stand out
The market analysis should also specify the effect of outside sources on your company. For example, if the industry is subject to regulation, include information indicating your knowledge of the regulation and your past compliance with it (if your business is already up and running). Will you require raw materials? If so, how do you guarantee you’ll have them at costs that support your financials? Are there any risks to price points changing?
What about your competitors? How do they differentiate themselves? What is their pricing strategy?
5. Organization and Management
The organization and management section should itemize your company’s management structure. Many business plans provide an organizational chart, a structure description, and salary forecasts.
The description should include each management position, the person in the position, their responsibilities, and their qualifications. If you have a Board of Directors, list them on a separate page, along with any experience relevant to your business’s success.
The principals of the firm, such as the owner and co-owners, are included in the business description section. If your company is small and currently contains only the principals, it isn’t necessary to include a separate organization and management section.
6. Service or Product
Now it’s time to describe your company’s product or service in detail. What do you sell, and who do you sell to? What exactly is your business model? What need are you fulfilling for the customer base? Business plans often itemize their entire product line with the planned or current pricing structure.
The service or product section should also include your product/service’s estimated lifecycle, and any research and development completed, in progress, or planned. Naturally, this section will vary greatly depending on your type of business. It should also include a description of any trademarks, patents, or other intellectual property rights, if applicable.
7. Marketing and Sales
The marketing and sales section includes three vital pieces of information:
How will customers find out about your products?
What will your sales channels and methods be?
What is your growth strategy?
If you plan for customers to discover your products or services through informational methods like industry meetings, specify what your plan for that method is. If you plan to advertise or develop a public relations campaign, specify what your efforts will be. Will you be on social media channels? Which ones, and why? Are these efforts designed to appeal to specific demographics or types of customers? Which ones, and why? Will sales be accomplished via a targeted sales team? Will management call upon relevant prospective clients or stores? Will you have an online presence?
If you have a growth strategy, outline it. If you plan expansions to other geographic areas or other types of potential customers, discuss it in this section.
8. Financial Analysis
The financial analysis section is key for lenders. The financial analysis must include financial projections for three to five years out. The further out into the future forecasts run, of course, the more difficult it is to predict with certainty. One solution is to prepare a business plan with three-year forecasts, but have a five-year forecast ready if the investors want them.
Tip: If you are already in business, you should also include historical results for the past three to five years (or for as long as the business has been operating, if it’s less).
The financial projections must include:
Income statements
Cash flow statements
Capital expenditure budgets
Balance sheets
They may also include profit and loss statements, sales forecasts, and financial metrics relevant to your industry. Lenders may ask you for more granular data, such as cost of sales or cost per product (or service).
You need to provide the projections by month, quarter, and year. Potential investors want to see the financials in both the short and long term. Why? Because businesses that aren’t meeting their monthly and quarterly projections can be risky. If they are falling behind in sales or profit, for example, they can fail rapidly.
On the other hand, if sales are much greater than projected, the company can find it challenging to keep up with production and other efforts. To counterbalance the risk, lenders always want a clear picture of what’s likely to happen.
Thinking of Starting a New Business?
Now is the time! With our society ready to get back in action (safely), new business concepts are quickly emerging with creative flows for serving the public without the high risk of spreading the virus. Put your innovative business concepts into play, and connect with us to get the funding you need to start your newest venture!
Financial restraints have been a complaint for many of the dreamers, limiting themselves to their immediate funds. There is an alternative. If you have the dreams and decent credit, Small Business Loans and No Doc Loans are available to you. Our goal is to provide you with the knowledge you need and the resources available to make your dream a reality. Give us a call – we have the education and the perspective to help you obtain the loans you need for your small business. Visit our website or give us a call to find out what financial backing is available to make your business soar!
Unsecured Finances has over 10 years in the consulting business! We specialized in educating and assisting clients on acquiring Unsecured Business Loans and Start-Up Business Specialty Loans including; Unsecured No Documentation (No-Doc Stated Income) Loans, Unsecured Business Loans, and Unsecured Start-Up Business Loans and Lines of Credit from $10,000 to $500,000 without Assets.
Apply on our website to find out if you qualify, or call today for a free consultation: 1-888-294-2584
Applying for a small business loan can be a daunting and discouraging process — which, given the statistics on approval rates, is understandable.
There are things you can do to improve your odds of getting a business loan. Let’s talk about what you might need to button up before you begin the small business loan application process.
1. Gather and organize all your business documents
Regardless of the type of loan you’re looking for, there are a number of documents you should have in place before applying for a traditional loan from a small business lender.
Here are the documents you should have at the ready:
Written business plan
Profit and loss statements and projections
Business and personal credit scores
Tax return documents
Bank statements
Copies of relevant legal documents including articles of incorporation, contracts, leases, and any licenses and permits needed to operate
Even if you’re not in the market for an SBA loan, you can check the Small Business Administration’s site for a full small business loan checklist.
2. Know how you’re going to use the money
Just saying “I need money to grow my business,” is not going to cut it. Before you decide to go for small business financing, make sure you know exactly what you’re going to use it for.
A specific idea about where you’re going to put your funds to work — and how that use will help your business grow in the long and short term — is something small business lenders want to see. Getting clarity here will also help you analyze factors like interest rates and loan terms, so you can land on the right loan for your business.
3. Create a rock-solid business plan and register your business name
Lenders want to see that you’ve thought carefully about your growth and operations strategy. That’s why a rock-solid business plan is such a crucial document in the small-business financing process. Lenders may look to your business plan to help them determine whether or not you’ll soon be in a position to pay them back.
You also want to make sure that you’ve registered your business name properly. You can’t get a small business loan without registering your business.
4. Make sure you have good credit
Bad credit makes it harder to get a small business loan. To many lenders, your credit score is a top factor in their decision on whether to accept or deny your loan application.
Generally, banks may look at both personal and business credit scores — so make sure that in both arenas, you’re making payments on time, spending well under your credit limit, and keeping accounts open. Also, if you have no credit history, that could prove problematic for some lenders.
5. Have a handle on your cash flow
Cash flow issues are a top pain point for small businesses, especially those with large, upfront operational costs and equipment. But if you’re applying for a small business loan, you want to make sure you’re consistently staying above water with your cash flow.
This is especially important in light of your debt-service coverage ratio (DSCR), something many lenders look at when deciding whether or not to approve your application. Essentially, a DSCR is the ratio of cash a business has readily available for servicing its debt. It’s a mathematical equation that lets lenders know whether or not your business will be able to pay them back (which is, of course, the top-of-mind question).
Ready to apply for your funding?
All clients go through a discovery process with one of our trained staff. The discovery process is where we ask you a series of questions and give you the honest truth about your file. Our staff will figure out all the different financing options for you. Each client’s situation is different. Clients are in different industries and have different credit scores, gross sales, revenue and profit margins. They make and show different amounts of income depending on corporate structure, equity and fluctuations in cash flow.
Business funding is not a one size fits all model. This is what our trained staff is here to determine. Our capital comes from hundreds of different sources (Banks, wholesalers, crowdfunders, private lenders and investment groups) and they all have different underwriting criteria.
Call us today to find out how we can help your business get the funding it needs! 1-888-294-2584
Thinking of Starting a New Business?
Now is the time! With our society ready to get back in action (safely), new business concepts are quickly emerging with creative flows for serving the public without the high risk of spreading the virus. Put your innovative business concepts into play, and connect with us to get the funding you need to start your newest venture!
Financial restraints have been a complaint for many of the dreamers, limiting themselves to their immediate funds. There is an alternative. If you have the dreams and decent credit, Small Business Loans and No Doc Loans are available to you. Our goal is to provide you with the knowledge you need and the resources available to make your dream a reality. Give us a call – we have the education and the perspective to help you obtain the loans you need for your small business. Visit our website or give us a call to find out what financial backing is available to make your business soar!
Unsecured Finances has over 10 years in the consulting business! We specialized in educating and assisting clients on acquiring Unsecured Business Loans and Start-Up Business Specialty Loans including; Unsecured No Documentation (No-Doc Stated Income) Loans, Unsecured Business Loans, and Unsecured Start-Up Business Loans and Lines of Credit from $10,000 to $500,000 without Assets.
Apply on our website to find out if you qualify, or call today for a free consultation: 1-888-294-2584
