What separates success from failure?
We all want the answer to be hard work, not luck. Often that is the answer. But even more often, the difference between failure and success comes down to how much money you have.
With razor-thin profit margins, small businesses need cash to survive. If you can’t achieve huge revenues, at some point you will need to borrow money to carry the day. Where you get into trouble is when you don’t choose the right lending partner or the right kind of small business loan.
This is a situation we deal with daily. Small businesses may come to Direct Capital for their first working capital loan not having a lot of experience with lenders, or they may have had several bad experiences with other lenders. Building trust with customers is something we always strive to do, but ensuring customers get the right financing is equally important.
So, you might be asking yourself, how do I get that partner? Go ahead and cross banks off your list, to start. Their small business lending ability has greatly diminished, and most bank lending requires considerable collateral. That can be crippling for a business that falls behind on payments or just doesn’t have a lot of assets to work with.
So your best bet is seeking out a lender that specializes in small business loans. With the right kind of loan, you can limit your exposure to issues, cover your costs and bridge the gap between shaky ground and success. If you find the right partner, it can change the course of your business career.
Tell us your experiences with small business loans, and whether they’ve helped you achieve success!