Starting the right way is essential for a small business to eventually make it big. Proper planning at all levels is a necessary obligation for businesses. Impulsive decision-making and wrong strategy can put the business into critical situation in no time. Among all factors, the most important aspect that a start up concern should concentrate on primarily is finance. Every company needs to maintain a proper financial flow to carry on their operations. A business cannot make profit from day one itself. It takes some months and even years to touch the break-even point. Till then the day-to-day expenses has to be taken care of. Thus a business needs an adequate flow of working capital to run its processes smoothly.
Arranging the working capital needs proper analysis of business requirements. The amount of capital needed depends on the size of the business. A rule of thumb is that a businessman should at least arrange for the capital that is equal to the revenue of the first year of business plus the probable expenses that the business can incur. So if the expected revenue is $125000 in the first year with other expenses amounting to another $175000, then the capital to be arranged for should not be less than $300000. Thus the financial experts of the business should analytically work out the amount of working capital needed for the business to operate without hassles.
Once this is done, an entrepreneur should look for funding avenues that can finance the business. Many financial as well as non-financial institutions offer small business loans. The type of loan opted for has a direct effect on the prospects of the business. Loans are of two types, secured and unsecured. Secured loans extend finance to those who can afford to provide a collateral/ security to the financial institution. On the event of non-repayment, the financial institution gains the right to sell off the security to get their money back. On the contrary, an unsecured loan does not need a collateral but may charge a higher rate of interest from the borrowers.
However, monthly repayments are always a major concern for the borrowers. Another primary concern is whether the concerned authorities in the financial institutions will at all sanction their loan applications in the first place without any delay. So, if one is looking for a financial option that offers easy eligibility and easy repayments, a business cash advance is the way to go for. The company should accept credit cards as a form of payment and be in the business for 2 years to be eligible for a business cash advance. In addition to this, the business should be processing a minimum amount of payments per month and should provide the bank statements for the last three months to the financial institutions. The biggest advantage of a business cash advance is the borrowed amount is directly repaid through the future credit card sales of the business. Thus there is no need to bother about month end installments.
So if monthly repayments, eligibility criteria, delay in loan sanction is all that is bothering you to start your own business, opt for a business cash advance for hassle free finance.