Did you know that the majority of small businesses fail within the first 10 years? In fact, 1 out of every 5 startups fails within the first two years. This figure grows to 45% over a 5-year span.
While there are many reasons for failure, lack of capital is one of the most common. There are so many upfront costs associated with a startup venture. Considering the lack of revenue at the beginning, even the best business ideas have trouble getting off the ground.
Fortunately for your business, there are innovative new ways to secure capital. Read on to learn all about startup business loans. Explore the 5 most important things to know about acquiring funding for small businesses.
1. Getting Small Business Loans Is Not Easy
Receiving approval for a small business loan is challenging for a new company. Lenders are carefully reviewing your financial records to assess risk.
They want to know how much revenue your business is bringing in. Also, they may require you to put up collateral for a loan. This is not easy for a business that has yet to establish a customer base.
2. Keep Your Expenses Down
While you are trying to create a revenue stream, it is imperative to keep your expenses low. This includes the financing expenses from your business loans for small businesses.
Many businesses make the mistake of taking out loans with high Annual Percentage Rates (APR). Lenders justify higher APRs when your business lacks revenue or does not have considerable assets. You should also look at other terms and conditions like late fees.
3. Credit Cards Have Lower Financing Costs
Credit cards are a better option than taking out a business loan for small businesses with high APRs. With Trutopia, you fill out a quick input form to get pre-qualify for cards that match your profile.
It is fast and secure, directing you towards more credit card options than any other technology available. Next, you receive an unbiased list of credit card applications to fill out. The end goal of Trutopia is to steer your business towards credit cards with 0% APR and provide maximum funding for small businesses and entrepreneurs.
Typically, these introductory offers last from 12 to 18 months. This is an effective way to reduce your financing expenses to zero and work on building the business base instead.
4. Maximize Your Credit
Few businesses are failing because they have too much capital. On the other hand, the lack of cash flow is a killer. It can prevent you from paying wages, rent, or purchasing critical equipment.
It is essential that you maximize your credit. Trutopia can optimize your credit applications and help you get up to $150,000 in working capital.
5. Apply Without Hurting Your Credit Score
It is important that you do not allow hard inquiries on your credit history. Searching aimlessly for lines of financing that will approve you can be detrimental to your score.
It is better to use tools that streamline the process into a single application. With Trutopia, you will get a list of applications with high approval odds.
You can also get pre-approved by simply filling out a quick input form. The best part is that none of these actions hurt your credit score.
Your Guide to Startup Business Loans
You are now ready to pursue small business financing. Many business owners think they need to apply for traditional financing. A better idea is to apply for multiple credit cards with high approval odds and 0% interest for 18 months.
If you are searching for startup business loans, contact trutopia today to learn more about the best funding options and business credit cards for your business.