When you’re in financial trouble, digging your way out of the hole that you’re in can seem like an insurmountable battle. But it doesn’t have to be that hard: financial assistance for small business owners is within reach.
All you need to do is figure out your financial goals (e.g. what do you need to accomplish to get your business out of trouble), find a funding type that matches what you need, and select the right lender. Here’s how to get started:
Step 1: Lay Out Your Goals
What kind of financial struggles are you facing as a business owner? You can’t simply take out a loan and have no plan for putting it to good use. Know what your struggles are, and what you need to accomplish to alleviate your financial woes.
For instance, if you’re a month behind on accounts payable and struggling to make payroll, your goal should be to increase your operating cash flow. If you’re facing sky-high operating costs that seem unsustainable, then your goal should be to increase sales to make those costs manageable in the long term. Or to reduce your expenses to increase your profit margins.
With a calculated plan, you can get your business out of trouble and turn a business loan into long-term stability. The key is to identify financial problem areas and figure out ways to address them. The funding experts at Mulligan Funding can help you with this process.
Step 2: Choose a Funding Type
Once you’ve identified the amount of business funding you need, you can start looking at different types of business funding that will help you to meet those goals. Working capital loans and business lines of credit are both popular funding types for a reason: they offer flexibility and instantly increase your cash flow so you can get your business back onto its feet.
Working Capital Loan
A working capital loan is a lump-sum loan that you can generally access for any purpose, making it a good choice for payables, purchase orders, inventory, payroll, and more. You’re approved for a single amount and receive that same amount as capital.
Small business owners often rely on working capital loans as a cash flow bridge, so they can keep their business afloat during slow months when they need time for their receivables and payables to synchronize.
Business Line of Credit
A business line of credit is fairly straightforward: you’re approved for a line of credit (let’s say $100,000), and you can access any amount of that line up to your limit, whenever you need it. If you only access $50,000 of your $100,000 line, then you only pay fees on the $50,000 that you’ve accessed, and no more. The remainder of your line (in this case, $50,000) is still available for you to access if you need help again.
This type of loan is a top choice for borrowers who have ongoing, changing financial needs. Having a business line of credit means that you have a safety net available for immediate access should you run into financial trouble unexpectedly.
Not sure which type of loan capital is the right one for your business? Skip ahead to step three, and discuss your situation with your lender. Financial experts at Mulligan Funding know the ins and outs of business financing and have seen every troublesome situation, so they’ll know how to help you find the solution that you need.
Step 3: Find a Lender Who Cares About Your Success
Having a strong financial partnership with the right lender is a crucial part of getting your struggling small business back on track. When you get involved with a lender who only sees you as a chance to pad their bottom line, you can end up taking on more debt than you’re able to safely handle, which only worsens your financial situation and gets you deeper into trouble.
Instead, go with a lender who treats you as a part of the extended family. Your financial partner should want to help you out of trouble so you can propel your business to success.
Mulligan Funding fits the bill: we specialize in helping small and medium-sized businesses to find the financial solutions that they need. We’ll never lend you more than you can realistically use to solve your problems and meet your goals; we’re not interested in charging you double fees and keeping you in a cycle of debt.
When you work with Mulligan Funding to get your small business out of trouble, you can expect:
- A one-on-one relationship with a financial expert
- Straightforward transparency about fees and costs
- A simple, one-page application
- Quick approval so you can start digging your business out of trouble sooner, rather than later
At Mulligan Funding, we care about watching you succeed. Contact us today to learn more about financial assistance for small business owners.