The Shocking Truth About Debt and How it Can HELP Your Business!

Business Funding - 3 Min Read

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It’s all too easy to paint business debt with the same brush as consumer debt. As consumers, we feel real pressure to keep credit utilization low, pay down our credit cards quickly, and avoid taking out loans unless we absolutely have to. But business debt needs to be viewed from an entirely different viewfinder. In fact, business debt is more likely to help your business rather than harm it.

Business debt can be the gateway you need for effortless cash flow management, quicker business growth, and deductions that lessen your tax burden. All it takes it partnering with Mulligan Funding to find the business loan type that works for you. Read (and watch!) ahead for the shocking truth about debt and how it can help your business: 

Pay for Goods & Services Up Front

 Some vendors offer an order-on-credit option, where you essentially have an open tab and pay the purchase order at the end of every billing period, rather than paying for your inventory and services up-front.

This is an intriguing option if you’re short on cash and need to float your purchase orders until accounts receivable are paid for the month, but in the long term, it actually hurts your business. Many vendors charge interest on such an arrangement, and others offer a discount for paying up-front.

When you take on a working capital loan or line of credit, you have the flexibility you need to negotiate up-front payment arrangements with your vendors. You score better discounts on recurring purchase orders, and you build a better relationship with each vendor, because who doesn’t like getting paid on time? 

Facilitate Business Growth

It’s all too common that small business owners let a major growth opportunity fall by the wayside because they don’t have the capital needed to make it happen. When you have an ongoing relationship with a trustworthy business loan lender, you can act quickly when you see the perfect new location open up downtown, and make sure that you grab that opportunity before a competitor does.

When it comes to growth opportunities, it’s important to look at business debt as an investment, rather than a cost or a burden. If you take out a $100,000 loan to secure a new location and look at paying that loan back with the fees associated with the loan, that may seem like an extraordinary cost at first glance. But when your new location rakes in an additional $200,000 in revenue, you’ve essentially repaid your loan and fees and come out ahead in just one year. 

Deduct Business Debt from Tax Liability

 The rate for corporate tax in the United States is quite high. With that in mind, every time you think about tax season, you naturally want to minimize your tax liability in any way that you can. You always should check with a tax professional to find out the specifics of how the repayment of a business loan can legally be used to reduce your business tax obligation. 

Mulligan Funding Can Help

It’s time to have a conversation with a financing specialist at Mulligan Funding about how a business loan can help your business and its unique situation. At Mulligan Funding, we recognize that every business is different, and we offer a tailored approach to every business owner we work alongside. We’re here to secure your success, not burden you with excessive debt and fees.

We offer a variety of lending solutions depending on your needs, including working capital loans that function similar to a business lines of credit. If you’re uncertain which loan type is right for your situation, we’ll help you decide. And we’ll help you figure out the right amount of capital needed to help your business succeed… we’ll never provide lending for more than you can use and repay comfortably, because we’re not interested in causing a financial burden.

Above all, we pride ourselves in a flexible lending approach that you can’t find at a traditional bank. Our process includes:

  • A simple, one-page application that requires minimal documentation compared to traditional bank applications.
  • Quick review and approval, sometimes within 24 hours!
  • A high approval rate, even if you have imperfect credit.
  • A one-on-one relationship with one of our financial experts to help you through the entire lending process.

Are you ready to find out how a business loan can help your business succeed? Call Mulligan Funding at 855-326-3564 to discuss your financing options today!

The information shared is intended to be used for informational purposes only and you should independently research and verify.

Note: Prior to January 23, 2020, Mulligan Funding operated solely as a direct lender, originating all of its own loans and Merchant Cash Advance contracts. From that date onwards, the majority of funding offered by Mulligan Funding will be by Loans originated by FinWise Bank, a Utah-chartered Bank, pursuant to a Loan Program conducted jointly by Mulligan Funding and FinWise Bank.