Unlock Your Business Growth Potential With the Right Financing Strategies

Every business owner should understand that finance is crucial to survive challenging times and continue expanding. But what is the proper method for business finance? Here are some financial strategies to unlock your business growth potential.

Explore Different Financing Options

Getting a business loan is not only important because you need to keep your business surviving. It’s also essential to make the funding process fast. If you borrow money from a bank or online lender, you can build your business in less than a year.

Another reason to get a business loan is its lower interest rates than credit cards. Business loan interest rates can be as low as 2% if your credit score is higher than expected. Meanwhile, business credit cards have an interest rate higher than 13%.

Here are the different types of lenders you might encounter while deciding.

Small Business Administration
Bank loans
Alternative lenders

These types have their pros and cons. Learn the differences between these types of lenders in our other article.

These guide questions will help you find the right lender for your business loan needs.

How much money does your company require?
What will be the purpose of your business loan?
How long has your company been active?
In terms of financial situation, how is your business?
How long do you plan to py your business loan?
What is your credit score?
How much collateral do you have to put up for the debt?
Do you have existing loans?
Will the loan be short- or long-term?

Comply With Regulatory Requirements

Following your industry’s policies is essential to ensure you’re not breaking any law. Abide by these regulatory requirements even before launching your business to avoid paying more in the future.

Some requirements you should consider include licenses or permits like employee pension and NAFDAC Registration. You must also pay attention to your tax payments.

Have an Emergency Fund

Another way to unlock your business growth potential is to have an emergency fund. Many business owners use their own savings to keep their business afloat during emergencies. No one wants to make this decision, but you won’t have a choice if you don’t have an emergency fund.

An emergency fund will give you immediate access to money during tough times. You can use it during economic crises, medical situations, and disasters. Even if your company is insured against specific conditions, the claims will take a lot of time. The policy may not also cover everything.

Be Realistic

You might have heard of the cliche statement, “Set a plan, not a dream.” Instead of setting unattainable standards, try building your business’s path to ensure everything is sustainable and measured.

One way to be realistic is by scaling back as needed. Continue monitoring your goals using key performance indicators and scale back if you feel the need to do so.

Need more help unlocking business growth? SavingsPlay will provide appropriate counseling to help you from the ground up.