3 Steps To Small Business Funding In #2020
How To Successfully Aquire Working Capital In 2020
When it comes to business funding, most small business owners or even Startup companies can feel really intimidated when it comes to borrowing working capital for their business. So whether or not you qualify or even feel that you’re not “Worthy” yet as a small business for such a responsibly, our team at Uplyft Capital is here to encourage start-up companies & small to mid-sized businesses to take that risk and use the money wisely! That’s why we put together 3 simple steps to acquire working capital for your business, and this applies whether its a business line of credit, an SBA Loan or other business funding options.
Step 1. Have a monthly sales goal for your business
When it comes to getting approved for working capital, most lenders require that your business is generating enough revenue every month to be able to handle making payments. Let’s be honest, how can they trust your business model is actually working! But having a monthly sales goal in place will not only push your team to exceed their quota but will also let lenders know you have a solid system in place that will not affect your promise to the lender on paying back your small business loan.
Step 2. Open a Business bank account
I can imagine you’re thinking, “This is a no brainer” right? Well, studies over the years have shown us that more than 50% of small business owners & startup companies are still using their personal business accounts which is a major “NO NO” if you want to get business funding or even a business line of credit. Remember at the end of the day business lenders are lending capital to the actual business & not to you personally, this way they disperse the funds directly into business account allows you to build business credit over time.
Here are a few financial institutions we recommend to get your business bank account set up online if you don’t have one: AZLO , Axos Bank , Bank Novo , SVB Bank & N26. These are all great options and can apply online with easy approval.
Step 3. Must Be In Business For More Than 1 Year
Now, this doesn’t apply to all industries. You can be in an industry that within 3-4 months the business’s monthly revenue is grossing anywhere from $10k – $20k and growing. If you’re already hitting those monthly sales goals then you are definitely in a great position to request additional working capital to continue to grow. Furthermore, most lenders will not lend you any capital if you’re not reaching a certain amount. The realistic number to be eligible for any kind of funding is about $10k-$15k in gross monthly revenue. Otherwise, you may be denied by most business lenders.
I hope these 3 tips helped give you some insight into the do’s and don’ts on getting business capital and we will be providing you with more educational tips and tricks to help improve your business! If you would like to APPLY with us just click HERE & fill out our application along with your 3 months business bank statements & we’ll get you an offer the same day!