If anything, it is the predictability of these troughs and valleys that confirms the resilience of a small business: A lender can see a pattern that repeats itself like clockwork, for years or even decades.Ī loan for this kind of business has less risk, while it allows an owner to maintain cash flow, increase marketing and advertising campaigns, develop new products and services, or attract more customers. This situation may be a seasonal phenomenon, as many small business owners have peak months or quarters of sales and profits, which means there is nothing wrong with the overall health of these companies. Covering Ebbs and Flowsįirst, let us review the need for a loan when a company has a shortfall of cash or a decrease in revenue. Or, where conventional lenders may decline an application for a short-term business loan, there are alternative means of financing that small business owners should – indeed, they must – embrace. It is this provision of short-term help – it is this infusion of money – that can enable a small business to weather a temporary slowdown in sales or activity, or upgrade or purchase equipment that will make a company more competitive and agile.Īwareness of this fact is, however, something else altogether because it is crucial that small business owners know about these opportunities, and it is vital that they seize these rewards, so their respective organizations can survive.
Small business owners face a series of financial challenges, which requires specific types of assistance and ready access to capital.
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