Looking to Expand Your Small Business? The Right Time for a Business Loan Could Be Right Now

Funding experts

Although the “survival rate” for small businesses in America remains promising, unforeseen expenses can have business owners searching for small business loans from funding experts. Recent studies indicate that, in general, two out of every three small businesses are successful past their first year.

Where larger enterprises have a distinct advantage, however, is in situations that require a substantial amount of cash on hand. Even a relatively small insurance settlement for a customer who has an accident in a retail store could raise future premiums past the point of comfort for a new business.

Having customers who trip, fall, or otherwise injure themselves could spell disaster for a business that is struggling to find a local customer base. For retailers with a high percentage of employees who work from home, a single computer virus could disrupt workers’ schedules for several days or longer, forcing owners to seek working capital loans for small businesses.

Funding experts who engage in small business lending realize that time is of the essence; typically, business loans become available in less than a week. Taking financial records and expected sales into account, small business lending experts are able to work with owners for extended — sometimes daily — repayment schedules. Interest rates can vary depending upon the amount involved; finding a local expert is recommended for business owners who want to learn more about working capital loans for small businesses.

Worldwide, small business loans — often referred to as “microloans” or “microcredit” — are being leveraged by entrepreneurs and business owners. Often lacking the credit history and collateral necessary to secure more formal avenues of funding, small business owners who take out working capital loans for small businesses may find that smaller loans can help them build a solid credit history.

Although larger loan amounts may be available, smaller loans that can be used and then repaid quickly can help jumpstart a business’ productivity and help owners purchase the equipment necessary for expansion. Business owners should also realize that they can deduct the expense of more than $100,000 of equipment in their first year of operation.

The last two decades have seen the rise of the American entrepreneurial class. Small business incubation programs, a variety of local and state tax incentives, and the transition to a home-based workforce have helped more than 25 million small businesses to find national and international success. Shoppers are no longer limited to purchasing local products, and at the same time American artisans have worked to make local products more enticing to buy.

Overall, owners who start a new business should understand that while there is risk involved in any venture, finding ways to reach out to niche markets and international shoppers — and being willing to contract for small loans, if necessary — can help create a positive outcome. American entrepreneurs continue to prove that customers want to support local businesses, and lenders are more than willing to help small business owners expand and grow.