How to End the Vicious Cycle of Small Business Loans

business loan

Does this sound familiar? You need a loan to save your business. However, you can’t get a loan because your business is struggling.

Trust us when we say you’re not the only one stuck in this cycle. Over 80% of small businesses have to close their doors forever because of cash flow shortfalls. But sadly, the big banks deny roughly 75% of small business loan applicants.

However, if a major bank says “No,” that doesn’t mean there is no hope. Here are some of your options to get access to cash or funding.

A Merchant Cash Advance

Here’s the good news: This is not a loan. It’s not subject to the same type of regulations that typical lenders and big banks are bound by. This is why you should check out Payvant Capital to explore your options if you’ve been denied a small business loan.

A merchant cash advance (MCA) can give you an influx of funding in exchange for a certain percentage of your future transactions. These are extremely popular among small business owners for three main reasons.

The first reason is the high approval rates. You can qualify if you have been in business for 6 months and have monthly transactions over $10,000.

The second reason is that the MCA’s turnaround time is incredibly fast. You can submit your application and get approved within 24 hours, which makes it ideal for emergency situations.

And the third reason is the reasonable payback terms. Your payments are linked to your income, so if your sales are slow for a month, you will be making smaller payments. This is better than having to worry about making the same static (and often large) loan payment every month.

A Business Line of Credit

A line of credit through a bank can be just as difficult to get as a loan. However, you might be able to get a business line of credit through a smaller bank.

This could be attractive because your payments and fees are based on how much of your line of credit you actually use. If you have a line of credit up to $10,000, you’re under no obligation to use it all.

The downside is that you’re often not free to spend your money however you see fit. You may have to submit paperwork to the lender explaining why you need access to your line of credit, every single time you need money.

A Business Credit Card

This is another form of revolving credit, and your odds of approval are higher than the bank. You can also get perks like cashback and reward miles when you use it.

However, the credit limits are often relatively low. So, if you need a major influx of cash or a means of funding something major, this may only get you part of the way there.

You can break the cycle! All 3 of these options are perfectly viable and help business owners like you every single day. Just because the banks aren’t an option doesn’t mean you’re out of options.

Don’t give up! Find the best option to help your business and your future!

Entrepreneurial Mindset: Your Vision, Mission and Plan of Action to Success Should Start Now

entrepreneur

Contrary to popular opinion, entrepreneurs are made, not born. What it takes to be a successful entrepreneur can be reduced to skills. And the good news is, all skills are learnable.

You can become a successful entrepreneur, even if you have tried and failed in the past. Entrepreneurs who rose to the pinnacle of their industries did so by having a vision, mission, and a success plan and most importantly, they worked hard at it till they succeeded.

You too can develop the mindset of an entrepreneur and succeed beyond your wildest imagination in your chosen business.

How Do You Develop an Entrepreneurial Mindset?

Regardless of the path each entrepreneur took to succeed, everything can be boiled down to this: entrepreneurs add value

Think of Mark Zuckerberg who enabled friends and family to connect and share their lives regardless of where they are in the world. Think of Travis Kalanic of Uber who made getting from one place to another regardless of the time of day and without cash as simple as tapping a few buttons on your smartphone.

To develop an entrepreneurial mindset, you need to think in terms of service and value. The rest is down to grit and the mentality to persevere until you reach your goals. Other techniques that can help are modelling the entrepreneurs you admire, reading books that inspire, joining an entrepreneurs’ network, and putting all you’ve learned into practice.

Your Business Vision

How will your business change the future? That’s your business vision. Vision provides you and your team with clear direction and focus. It helps you to make the right decisions easily. It attracts talents, investors, and strategic partners. Without a vision, no business can exist. Take the time to develop your overall business vision in line with your short and long-term objectives.

Your Business Mission

Your mission is what drives you and wakes you up every morning. Your business mission is more than the common empty statements filled with corporate-speak and intention of what companies intend to do. For FedEx, their mission is to get it there. TED’s mission is to spread ideas. Google’s mission is to organize the world’s information and make it universally accessible and useful. What’s yours?

Your Business Success Action Plan

A well-known axiom of success states that if you fail to plan, you plan to fail. Your action plan is a breakdown of tactics and steps you need to take to pave the way to business success. The plan should include how you intend to make money, how you plan to win customers, how you intend to attract talents, how you intend to protect your business, handle emergencies, and so on.

Why Now Is the Best Time to Start

To develop an entrepreneurial mindset, you need to have a vision, mission, and action plan to succeed in business. There is no better time to start developing an entrepreneurial mindset, articulating your vision and mission, and formulating a plan of action than now.

Starting to work on these important components of entrepreneurial success will give you clarity, help you build momentum, test things in the real world. And if you’re the first in your marketplace, you could also enjoy the first-mover advantage.