The success of a small business depends on the fine management of cash flows and leveraging funding to grow. Business owners must know the fine art of being able to access funds as and when required. This way they do not face cash crunch issues and their business run smoothly. Take for instance a retail shop. If the owner faces difficulties and does not stock merchandise or closes shop for even a brief period his customers go elsewhere and it will be difficult to get them back. If he had access to funds when needed he would be in that situation.
Regular channels of loans are out of consideration when speed is important. Banks take a month or even more to process applications and ask for collateral that a business owner may not be able to furnish. He has to furnish the purpose for which a loan is required. Even if has property to mortgage it is not a wise step because of the uncertainties of the business funding loan is the best even if it is expensive. How expensive? Interest on secured loans can have APR as low as 4.9% whereas APR for unsecured funding can be anywhere from 20% to 100% depending on the lender and how they assess the risk of the borrower and his repayment capability. Some lenders make it even more expensive by charging upfront processing fees that can be about 2% of the loan amount. Some, like wscapnow.com waive processing fees altogether and charge a reasonable APR.
Unsecured funding is the best option for small businesses for several reasons. A borrower does not need to define the purpose for which he wants the loan. He does not need to furnish security or collateral and documentation is limited to proof of residence, proof of identity, proof of ownership of business and bank statements. Best of all, the loan is disbursed within a week of initiating the process online. However, one should be careful and choose unsecured business fundingafter taking into account:
- Rate of interest – a reasonable rate such as 20% is acceptable
- Waiver of upfront processing fees
- Flexible repayment schedule that can be fixed between one to three years
It is best to avoid lenders who ask for upfront processing fees and charge a high interest rate. Some smart lenders will not define the rate precisely in advance and will indicate it only after a person has accepted the loan and the rate is usually high. Some lenders may link repayment to card sales and this may work in their favour but to the disadvantage of the borrower who has no way of knowing how much he will end up paying by way of interest. If sales are low, repayment is spread over a longer period with a higher amount paid as interest. It is better to opt for lenders who offer flexible 1 to 3 years repayment schedule on a monthly payment basis. With the right lender like wscapnow.com by his side, a businessman need not fear cash crunches. With proper planning, he can use unsecured funds as a way to grow.
Apply now to water street capital. Just fill in the form online and initiate the process or you can check the PDF form. For more details contact us, email us info@wscapnow.com or call us: +1-800-589-4161.
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