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How to Utilize Business Loans if you are affected by Global Pandemic?

Covid19 Update: Government officials and health officials work together to protect the American people’s protection, security, and health. Small companies are advised to do their part in keeping their staff, clients, and themselves safe.

Read First: 6 Key Steps to a Successful Business Loan Approval

Once you have granted a business loan, you’ll need to identify how you can use and utilize it for the best possible financing. Many factors to consider especially what is happening right now due to the Global Pandemic. You can use it to generate revenue investment or for safety measures. Every business needs depend on your business is located and how your states have been affected. Keep reading to learn more about how can you utilize your loan during the coronavirus pandemic.

Ways To Utilize Your Business Loans

Additional Safety and Health Measures
In order to reopen your business, you need to comply with your state regulation. Invest in extra health and safety measures such as disinfectants, sneeze-guards, sanitizing stations, and more. It can benefit your company and your employees.

Marketing Plans
Most business is affected, sales volume decrease drastically. For your business to continue going forward, you need to invest in a marketing plan to spread about your business. Boost your social media brand to drive more traffic into your physical store or website.

Pay Your Employees
In order for your employees to get into work, you need to consider payroll. They are affected too. Having them money can help them get back to their daily task.

Clean Your Store or Office
It is necessary to clean your store and offices today. No one is safe. Cleaning and disinfecting are a must. You need to hire professional cleaners to clean your store or business on a weekly basis to ensure your employee and customers’ health.

Bills, Bills, Bills
Due to shutdowns, most businesses experienced a collapse in sales. It hard keeping up on sales since the coronavirus. To get back on track, you need to pay off debt and use it for your monthly expenses. Or you might need your loan for office relocation.

Additional financing such as loans makes it easier for your business to move forward, especially in these unprecedented times. Most business is affected. Utilizing your additional financial funds in a smarter way will ensure your business, employees, and customers’ future.

If you need Additional Financing for your business, give us a call.

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How To Get A Business Loan Despite Of Your Past

How To Get A Business Loan Despite Of Your Past

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For the next few minutes, let’s say that you’re a lender. Three business-loan applications land on your desk one afternoon. Francis has one. Martha’s Another One. And the third is from a local woman with the hope of expanding her day-spa business.

Like many lenders, you begin to judge each application by the parameters known in your industry as The Five C’s: Cash Flow, Capital, Conditions, Collateral, and Character when it comes to deciding to fund or not to fund. In several ways, for decades, those five things were part of the secret of How to Get a Business Loan.

The Five C’s

Let’s say the three applicants in the first four groups are all doing well. Martha’s latest line of self-mixing muffin tins, for instance, has greatly improved her cash flow. With the House as collateral, Francis appears in that category to be in decent condition. And the day-spa owner recently put a large amount of capital into her business, her own savings, which says a lot about her commitment to its success from your point of view. As far as economic conditions are concerned, you do not foresee any stumbling blocks (political, environmental, or geographical) that could impact the capacity of any of the applicants to make good on the new debt they hope to take on.

How to Get a Business Loan

But one more category still has to be considered: Character.

The Question of Character in How to Get a Business Loan

The weight given to the character of an applicant may range from lender to lender. And it also depends, sadly, on something as arbitrary as, say, a wimpy handshake. When it comes to character, you want to take a number of criteria into account, including:

  • Involvement in the community
  • Overall stability
  • Any and all criminal activity in the past
  • A criminal record as a possible deal-breaker
  • Applicant’s success prior to this business endeavor
  • Credit history
  • Referrals from respected community members
  • References from professionals – accountants, lawyers, business people – familiar with the applicant’s business goals

Francis quickly passes the character test with not so much as a speeding ticket to his credit. So does Ms.Day Spa after her college roommate’s wedding, considering the misdemeanor on her record for “public drunkenness”; it was a one-time indiscretion years earlier since then, covered by an abundance of positive factors.

Also Read: Increase Your Chances of Getting Your Personal Loan

But you plan to turn her down due to Martha’s felony record. She would no doubt reapply with other creditors, hoping they won’t run a background check as you did. But if that lender asks about it, experts have wisely advised her on how to get a business loan in order to be truthful, forthcoming, and fully open. That is a strategy that can go a long way with certain lenders, all things considered.

Judge For Yourself

It’s your responsibility as a lender to determine whether a borrower would be a successful investment or not. Can their loan payments be made on time? Is their company going to survive? Can they be trusted with the stuff they say they will use the money for? And while in a funding decision all the Five C’s come into play, it could be the character that eventually tips the scales.

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