One of the early challenges for small businesses seeking financing is knowing how to use it effectively.
Ideally, of course, you should be able to identify a business need, get the financing you need for it fast and deploy it to fill that need. This is how many small businesses use Direct Capital financing, and certainly we strive to make it as quick and easy as possible. What happens, however, if your needs are multi-faceted? What happens if they’re seasonal?
There are four steps to ensuring you’re obtaining the right kind of financing, and that you’re using it effectively. Given how often small businesses need the boost that financing can provide, it’s important to know these steps.
- Figure out your need. If it’s a remodel for a franchise store, you’ll want financing that will cover every contingency and will be available well before the first hammer hits the first nail.
- Decide whether or not you’ll need additional financing. In the case of working capital*, Direct Capital offers bolt-on financing. In the case of a remodel, for example, you may need some extra cash to market that remodel effectively.
- Work with a trusted partner and have them help you understand how you can deploy the financing, use it to grow your business and ensure you’re getting everyone paid on time. It also helps to know when you’ll get the financing, what your payback schedule is and what kind of interest you can expect to incur. Then roll the financing out and get that project done!
How do you use your small business financing?
Direct Capital is a leading provider of small business financing.
*Working capital not available in the following states: AK, DE, ND, VT