You can’t expect to grow your small business if you don’t have enough inventory on hand.
A new restaurant, for example, probably won’t develop a great reputation if it’s constantly running out of dishes and drinks because it doesn’t have enough ingredients on hand. Similarly, brick-and-mortar retail stores are unable to generate any revenue whatsoever when their shelves are empty.
If you’re running low on inventory, shouldn’t you just use the money your business has in the bank to get more supplies?
It’s not that easy. As any small business owner will tell you, cash flow management is critical to the success of any company. When the cash river runs dry, it can be difficult, if not impossible, for small businesses to pay their bills and meet payroll. And forget about devoting resources to expand your business. Without access to cash, you can’t invest in new products, open new locations, or target new customer segments.
From time to time, many small businesses need a little help when it comes to their finances—particularly when they’re just getting started. That’s just how it is. But instead of tapping into their own paltry cash reserves, they decide it makes more sense to look for funding elsewhere. You never know when you might need money for an emergency, after all.
Unfortunately, it can be difficult to secure small business loans from traditional financial institutions, particularly when your business is newer. This problem is perhaps more pronounced when business owners have bad personal credit scores.
If you find yourself having a hard time securing small business funding through more traditional lenders, it might be time for you to look into unsecured business loans.
Whereas a lender takes title of your collateral in a secured loan, borrowers don’t need to put up any collateral to obtain an unsecured business loan . For this reason, unsecured loans tend to have slightly higher interest rates. But they’re much easier to obtain—particularly if you don’t have the best credit in the world.
Since you don’t have to put up any collateral to get an unsecured small business loan, you don’t have to worry about tying any assets to your company’s financial statements. In other words, you won’t lose your personal car if your business goes under.
Keep in mind that borrowers are more likely to get better small business loan rates when they’re planning on putting the money toward revenue-generating endeavors. By using your unsecured small business loan to build up your inventory supplies, you’re increasing the potential of your revenue stream—something which should convince lenders to give you lower rates.
One of the best parts about unsecured business loans is the fact that you get access to cash quickly. You don’t have to go through a long, drawn-out process and complete form after form after form. Sure, there’s some paperwork required (it’d be kind of crazy if there weren’t), but for the most part, you won’t have to spend that much time signing up for an unsecured business loan. The approval process is fast and easy. And once a contract’s signed, you get money in a couple of business days.
If you’re struggling to grow your business because you find that you run out of inventory on a regular basis, it might be time for you to find an unsecured business loan through an alternative lender. Then, in a matter of days, you’ll be able to acquire the inventory you need to generate more revenue and better serve your customers.
Thanks to the Internet, it’s easier than ever to find the best prices on unsecured small business loans. A few minutes of research should go a long way toward padding your company’s bottom line.