What Are The Benefits Of A Small Business Loan?

What Are The Benefits Of An SBA Loan?

Share with friends

So the first question you should ask yourself what is a small business loan and how can my business benefit from this?  So here we go.. A small business loan is a loan that is provided to small businesses for different purposes by a private lender ( not a large bank)  These loans have much fewer requirements than a personal loan or a bank loan. this enables small businesses to secure funding. A small business loan is actually structured to help small businesses succeed if utilized properly. So how does this work?  It’s super easy…SBA loans are the ultimate option for small business owners because you get a longer-term loan with a much lower rate and this means cheaper payments.   

So you’re a small business owner lets see… you have anywhere from 1-20 people working for you and you need more funding what do you do??  One thought could be maxing out the credit cards you have, after all, you do have an excellent line of credit… you need to buy computers and software to grow your business why not max out the credit cards? You can buy anything you want with credit cards… Then the real question comes…  Is this a good answer? In the long run, do you really want to pay back a 24.99% to 27.99% percent in credit card fees? What is the best way to get cash on hand to better your business to be able to grow and still pay lower interest rates than a credit card? All of a sudden you get an email….  You have been pre-approved for a small business loan? What is this??? Looks like there is light after the dark tunnel after all. What is it and how does this work?  

If your business has been in business for one year or longer and has $10,000 in monthly revenue you can apply.   Personal credit does not matter and you do not need collateral to be approved all you need to show is your bank statements where it indicates a consistent cash flow of $10,000 monthly revenue.  This is what we call cash flow financing. Sounds good so far??? Hold on tight there is more. You can also get approved for unsecured financing and this loan can be up to approximately $150,000 ( The approval amount depends on what you can get approved for )  even if you’re a start-up you can qualify for 00% interest for up to 18 months and you do not need to have collateral but you will need to have good credit. I have to say that it is way better than having to pay your percentage off your crazy credit cards. At a 27% interest rate, you are actually paying the computers you bought for your business 3x times over…

So now that we have this information to work with you can ask yourself what are the benefits of getting a small business loan… Here I am going to break down just a few of thousands if not millions  of reasons why getting a business loan is good business: 

  • The biggest headache of starting your business or trying to keep it together is how will you start it or how will you keep it together in the first place… what this means is when you get a small business loan you will already have the cash. You will not need to worry or stress where the funds will be coming from. This way you can concentrate on what’s really important this is how to make your business grow.
  •  Now that you have a business loan and you understand this is NOT free money and this has to be paid back you will now learn to be more professional and take your business much more serious.  You will know what is at stake and that you have more to lose then what you started to work with because of the interest that you will have to pay back. You will understand to make better choices not be so frivolous with money which means you will be more serious about your business expenses and where your money is going. 
  • When you get a small business loan and you are approved, you get hundreds if not thousands of benefits in tax money. Basically, everything is a right off… from the food you eat which will be a business expense, to gas, to any purchase that you make that is business-related. All this is an amazing benefit. 
  • Not to mention that when you start your own business you start making your own income… what does this indicate… what every American wants. Financial freedom. Your own cash flow will start coming and if done properly it should be more than your 9-5 job. This is why you started the business in the first place. To be your own boss.  
  • You will learn business organization and your time management.. What does this mean…  When you know that money has to be paid back you do not have time to waste. You have to go out there and make your business work.  How you manage your time is one of the most important things in being a small business owner. You have to make the cashback and that’s working hard, not wasting your time. 
  • Thanks to your small business loan now your business can really flourish because of the financial help you have just received. This entails now you can purchase the software or computers needed, now you can pay extra people to come in and fix that horrible web site you had to do yourself.. You can hire experienced personnel to help your business become an empire. That empire that you have always dreamed of. This was made possible with an SBA loan that pushed you. The SBA loan has funded your dreams.
  • The best part of an SBA loan is that you DO NOT have to put any, zero, zip of your own cash flow… you will have a loan that provides all the help that you need. None of your personal assets will be touched and no collateral will have to put up ahead of time.. This is also a major relief. knowing that your money is in the bank in case of a rainy day. That’s a major relief in my eyes. 

The list goes on and on about the benefits of an SBA loan it really does.. You do not have to be scared to start something.. I say that to say this… If you are passionate about what you love or if you have this idea that you know will work start your business do not allow money to get in the way of your dreams coming true.  SBA loans are meant to help people who have these great, amazing talents and ideas to be able to push them and make them a reality. 

Recent Posts

COVID-19 Relief

Stay up to date with the latest options of business funding.

We are here to help.

Our staff is committed to help finding solutions for you.
Learn more