Most entrepreneurs know it is important to set goals, but many do not thing of financing when they think of setting goals. Financing goals can help you make decisions as you open your start up and as you run your business from day to day. Consider the following.
What Are You Willing to Finance?
Maybe you will finance an expansion or new building, but you want to get to a point where you do not have to finance equipment repair or replacement. If you have a problem collecting receivables, are you okay with doing a merchant cash advance or factoring receivables to cover a cash flow gap, or would you rather work up to having enough savings to not have to worry about that. Knowing how you want these things to work will make a difference in the decisions you make as you run your business day to day.
What Type of Financing Do You Want to Use?
Do you want to buy your building with your startup funds or look into commercial real estate loan rates? Are you going to use a small business line of credit or a credit card? Maybe you want to pay cash for all day to day operations, but you know you need a backup plan if cash runs short from time to time.
Where Do You Want to Keep Your Rates?
Rates are constantly changing. Unsecured business loan rates are higher than secured loan rates, and commercial real estate loans vary as well. Your own credit score and how much of a personal investment you have to offer can make a difference too. While you will not always be able to control your loan rates, you can have an idea of where you would like to keep them to give you a point of reference as you are shopping around.
For an easy way to see what many lenders have to offer that is perfect for your situation, visit Biz2Credit. With a network of over 1,300 lenders, we are sure to have something that works with your financing goals.