Small Business Solution

Written by Josh Dodes
Bookmark and Share

Despite the preponderance of online firms implicitly suggesting otherwise, the most useful small business solutions are more than simply scaled-down versions of big business solutions. In few areas is this truer than in the area of securing working capital. In fact, lending structures that work well for big businesses can often provide the last type of lending structure small businesses need.

While traditional loans may indeed come in many shapes and sizes, they all have one element in common: the expectation of steady, and often steep, repayment fees. While larger businesses can typically keep up with such fees, even in the face of monthly income fluctuation, the same cannot always be said of smaller firms. With budgets tight and the market more unpredictable than ever, small businesses that take on traditional bank loans often do as much to hurt their long-term financial prospects as they do to ease their immediate financial dilemmas.

A Smarter Small Business Solution

Fortunately, savvy business owners can now avail themselves of a smarter and safer small business solution. Thanks to a select group of financial experts schooled in the unique financial characteristics of smaller businesses, small business owners can now obtain working capital as an immediate lump sum and pay it back on a schedule that is tied to their earnings. The mechanism by which this new model works is less a traditional loan that an advance purchase of future earnings, repaid as a percentage of income.

Consequently, downturns in income automatically result in downturns in repayment amounts, and vice versa. With so much that is so unpredictable in today's small business economy, the predictability inherent in a percentage-based repayment system is all the more valuable. Take the time to discern genuine small business solutions from scaled-down versions of solutions designed for your bigger competitors, and you will never regret having done so.


Bookmark and Share