by speedadmin | Sep 28, 2022 | Blog
Getting a loan for your small business can fuel growth and development. Here are some important things that you should do to successfully pursue an SBA lending opportunity.
Strengthen Your Credit
From day one of a business’s operations, it is imperative that owners act strategically about building their business credit. Building a good score is an excellent way for businesses with modest operating budgets to establish credibility that can help them access a loan or a line of credit.
A business credit score can have a pivotal effect on a business’s ability to obtain an SBA loan. If a lender has concerns about credit issues, it may decline to offer a loan, or the funding terms that it offers may be burdensome. In fact, lenders may be categorically unable to extend an offer to a company with a credit score that is below a threshold requirement.
Find the Right Lender
Your local SBA Association and other reputable resources online can point you in the direction of lenders that can offer businesses an SBA loan. Bear in mind, however, that not every lender stands on equal footing. Research different options, and try to work with a financial services provider that has experience lending to businesses in your sector of the business world. Lenders that have industry insights are better equipped to understand a growing company’s financial strengths and weaknesses than a lender who views all growing companies through the same lens.
Demonstrate Stellar Organization
All of your business’s financial and corporate recordkeeping must be in perfect order. You must have complete documentation reflecting all of your financial activities. Your financial statements should demonstrate a strong ability to meet ongoing overhead expenses in addition to new obligations associated with an SBA loan.
Being able to show a lender that you have meticulous accounting practice and solid bases for forward-looking projections. Both of these traits of successful applicants exhibit competence and inspire confidence.
Budget Practically
They want to see that your operating budgets are practical and thorough. Your presentation of your planned use of proceeds must not appear too speculative or reliant on contingencies that are beyond your control.
Savvy business owners do not look to the SBA lending process for a lifeline to sustain their operations amid challenges. Instead, they are seeking funds to lay the foundation for a future that they will forge with careful planning and hard work. The process is competitive, so businesses need to present a strong application in order to get a loan.
At Speed of Light Funding, we have a great reputation for helping our customers get the business loans they need as quickly as possible. We offer flexible loans that adapt to your company’s circumstances and are easy to qualify for. We’re friendly and knowledgeable, showing you the best commercial finance options for reaching your goals. With the right loan, your business can grow in amazing ways.
by speedadmin | Sep 21, 2022 | Blog
When you need working capital and your business uses invoice billing, the go-to solution is often accounted receivable financing. You can get the cash you need without adding debt to your company’s credit record, and you also get to outsource a portion of the collections process so you also save labor. Financing receivables is not the only way to accomplish this goal, however. Under the right circumstances, purchase order financing can provide you with an even more cost-effective way to access the capital you need.
Similarities Between Financing Methods
Both of these financial products are based on factoring, one of the oldest methods of commercial financing. They are each a little different, however. Being based on the same original product does make them very similar in a few key ways, though. Both require you to have customer orders in one state of fulfillment or another.
Financing accounts and purchase orders also mean directing customer payments to the lender, another point they have in common. There is also the fact that both cash advance methods provide you with flexible capital, and neither shows up as debt on your credit report.
When To Finance Purchase Orders
The biggest difference between the two forms of financing is that purchase order financing is based on outstanding orders and not completed invoices. That makes it an ideal way to raise the capital needed to fund a project’s supplies and labor costs. With the right approach to pricing, you can even use it as a standard method of financing rush orders.
Since rush orders are usually priced to include a premium for the inconvenience, it is easy to fold the cost of financing into the order. This allows you to save your invoices for regular cash flow financing and prevents large and unexpected orders from disrupting that rhythm.
When AR Financing Has the Advantage
As efficient as financing your purchase orders can be, it is not an everyday solution for most businesses. For starters, you need to have purchase orders, which limits this form of financing to manufacturing and trade-based businesses. This also means you usually do not have as wide a collection to finance at once as you would if you were financing invoices.
In the end, purchase order financing can fill in the gap in your financial reach at opportune times, but it’s a good idea to plan to use both accounts receivable financing and purchase order advances to keep cash flowing through your business.
At Speed of Light Funding, we have a great reputation for helping our customers get the business loans they need as quickly as possible. We offer flexible loans that adapt to your company’s circumstances and are easy to qualify for. We’re friendly and knowledgeable, showing you the best commercial finance options for reaching your goals. With the right loan, your business can grow in amazing ways.
by speedadmin | Sep 16, 2022 | Blog
When people need something these days, they rush to the internet to find the solution. As the leader of a company, you want to be the one providing the answer. Unless your website appears toward the beginning of search results, potential customers are likely to patronize other businesses. Even if your business shows up, you can likely benefit from having a better Google ranking. Here are a few reasons why the search results you’re experiencing might be less than you desire.
Not Enough Time Has Passed
It takes a while for Google to identify and categorize everything on the internet. Your site might not have been spotted by the search giant’s spiders yet. These programs have to comb the entire web for anything new. The same applies to improvements regarding search engine optimization. The benefits of tweaks do not appear immediately. Usually, it takes between four months and a year before there are positive results.
Keywords Are Wrong
By now, most entrepreneurs understand the importance of keywords. If you’re unfamiliar with the concept, they are strategically used words designed to help browsers find the information they seek online. Google categorizes its results according to the language it scoops up from websites and within the code that instructs how they should be displayed, making keywords a vital factor for every business leader looking to boost online visibility.
There’s a possibility you’ve already included keywords within your site, but the ones you’ve chosen are ineffective. The language you employ must match what potential customers are typing before they hit the search button. Think about what words someone needing your services would use and rewrite your site’s text to match these queries.
Your Domain Has Problems
Sites that are appealing, functional, and enjoy plenty of traffic receive favorable attention from Google’s algorithm. Maybe your site needs a refresh. Review yours and try identifying significant problems. Do all the links work? Is the content outdated or poorly written? Consider load times. Are bloated graphics or animations slowing the response? Make design changes as applicable. If your domain has a visitor counter, delete it posthaste; having one is a sure sign of irrelevancy. Besides gaining attention from Google, these changes are likely to improve what others think about your venture.
Getting your operation to the top of Google’s search results is a worthwhile objective. Achieving this goal requires rethinking one’s online presence and taking specific actions. Remember the reasons why your ranking may be unfavorable when pursuing better positioning.
Business owners know that you get what you pay for. When it comes to digital advertising, this principle is essential for success. Don’t risk something as important as your company’s online reputation. Entrust your digital marketing to experts. At Speed of Light Funding, we’ve been providing state-of-the-art marketing services to business owners for a long time.
by speedadmin | Sep 14, 2022 | Blog
Buying a commercial property can be a confusing and intimidating process for even the most seasoned real estate investor. You should have a strong understanding of the commercial real estate market and the fundamentals of property ownership before diving into this venture. Read on for detailed advice on how to start investing in commercial properties.
Take Pictures
You’ll want to take pictures of the interior, exterior, and any special features of the building before you make any purchasing decisions. It’s also a good idea to take pictures of the property from the street. Then, take a separate set of pictures of the exterior of the building; make sure you capture the condition of the roof, the sign on the building, and any other features of the property that are relevant.
Research Properties
Before you go out and buy a bunch of real estate properties, you’ll want to conduct some basic market research. Your findings should help you determine the current demand for real estate in your area and the pricing trends for similar properties. You can also conduct online market research by entering your specific area, the types of properties you’re interested in, and the price range you’re interested in. There are plenty of online tools that can help you with this.
Estimate Value
Once you’ve completed your market research, it’s time to estimate the value of the property. For this, you’ll want to use a basic valuation model. You should start by looking at the income and expenses of the property. From there, you can adjust for any market risks that may affect the property’s value, such as potential rent increases or construction costs.
Get Pre-Qualified for Loans
After you’ve completed your market research and analyzed the financials of the properties that you’re considering purchasing, it’s time to start the process of pre-qualifying for loans. For this, you’ll want to work with your bank or other financial institution to determine what kind of loans are available to you. Commercial real estate loans are the most common type of loans that are used to purchase commercial properties. If you want long-term financing, an interest rate reset loan might be your best option. But if you want a shorter term, a balloon payment loan might be the way to go.
By now, you should have a good understanding of what it takes to buy a commercial property. By factoring in all of the details, you can start making your investments worthwhile.
At Speed of Light Funding, we have a great reputation for helping our customers get the business loans they need as quickly as possible. We offer flexible loans that adapt to your company’s circumstances and are easy to qualify for. We’re friendly and knowledgeable, showing you the best commercial finance options for reaching your goals. With the right loan, your business can grow in amazing ways.
by speedadmin | Sep 7, 2022 | Blog
If your business depends on equipment to generate profits, you probably use it many times a day. When you first apply for equipment financing, the machinery looks so new that you probably instructed your workers to take extra care of it.
As the months and years go on, though, and scratches or dirt start to show up, it’s easy to start to take equipment for granted. Resist that temptation. Equipment maintenance is a long-term investment in your company’s financing health.
Equipment Financing Power: What Is Equity?
One of the most important reasons to keep your equipment in good repair is because it can be a valuable source of equity for financing. Equity refers to the value of business assets. When you own heavy machinery or other types of equipment, they can help you secure other loans.
For example, if you want to purchase a piece of real estate for your business one day, most banks will ask you for collateral. Heavy equipment is an excellent source of collateral that helps reduce risk and lets you qualify for better interest rates.
What do lenders use to determine how much financing you can qualify for? Generally speaking, they look at your equipment’s equity. When construction equipment has been properly maintained, looking, and working well, the machinery has a higher market value. That means you can get a larger loan and have an easier time qualifying.
Profits for Your Business
When you choose equipment financing, ongoing maintenance is stressed by the lender. This matters for protecting your investment, and it’s good for your revenue as well. Think about it: The better your equipment runs, the more money you can make with it.
Careful maintenance helps improve profits in several ways. Avoiding premature wear and tear means the machinery lasts longer. Instead of getting 10 years of service from a backhoe, you can get 25 years or more with good maintenance. Once you’ve paid off the loan, every additional year represents a huge increase in your return on investment.
The Biggest Problem with Downtime
Maintenance is especially important for the machinery that your company uses day in and day out. These vital pieces of equipment are key to your company’s services. If they break down, it doesn’t just mean you have to hire a mechanic; it means your entire work process comes grinding to a halt.
You lose money and have to pay employees to wait around until the equipment is up and running again. It’s better to maintain equipment and avoid breakdowns in the first place.
At Speed of Light Funding, we have a great reputation for helping our customers get the business loans they need as quickly as possible. We offer flexible loans that adapt to your company’s circumstances and are easy to qualify for. We’re friendly and knowledgeable, showing you the best commercial finance options for reaching your goals. With the right loan, your business can grow in amazing ways.
