Loans are opportunities you can’t afford to miss. When you consider all the doors they open for an emerging business, you’ll see that the right loan with the right team is worth it many times over.
Here are three examples of business owners who benefited from Dealstruck loans in ways they never could have otherwise.
Term Loans: Grow NOW
In order to grow its profits, a local restaurant had no choice but to grow physically first. It was packed with customers every night, so money was coming in, but it had maxed out how much it could bring in. With a term loan, the restaurant expanded to double its capacity. Double the customers meant double the money, and they paid their loan off easily with cash to spare.
Inventory Line of Credit: Get Ahead of Your Products
A popular shoe store was having no trouble selling shoes, but its owner was only making enough money to keep his shelves stocked. He wasn’t bringing in enough to grow or get ahead. The only way to make more money was to increase his selection, so he needed a cash infusion. Luckily, an inventory line of credit gave him the purchasing power he needed to both cover his expenses and expand his offerings. When the new inventory sold, the loan was repaid and the extra money from the additional sales went into expanding his selection even more. Not a penny came from his own pocket.
Asset-Based Lines of Credit: Stay in Front of the Competition
A savvy retailer got into the wholesale smart phone and tablet business just as it was taking off. Demand quickly exceeded supply, and she found herself scrambling. If she couldn’t satisfy her customers, they’d go elsewhere fast. Her retail distributors paid her every 30 days (this is called a “net 30” payment), and she was strapped for extra cash to buy the additional product she needed. With an asset-based line of credit, she borrowed against her accounts receivable (the money her distributors owed her) to purchase additional inventory. With the profit, she offered her partners extended terms and more benefits to keep them with her for the long haul.
Going it alone costs more than a loan.
When many small business owners see the terms and cost of a loan, they often decide to put it off or give up entirely. If any of these business owners had tried expanding without loans, most would have stagnated indefinitely, gone into personal debt, or grown one tiny step at a time, paying out of pocket every stressful step of the way.