Do you need extra capital to grow your business?
Having your own business is no easy feat. While every single one starts with a good idea and plan, these often fail due to the inability to meet the challenges that come with it.
One of the most common roadblocks is funding. Without enough funds to start and maintain the business, it’s almost certainly doomed to fail.
Fortunately, financing companies like Qupital SME Loan now offer solutions to this problem. Startup business financing is an ideal way to acquire the capital needed to reach business goals.
Today, we will discuss what startup business financing is and how to obtain it.
Ways to Get Capital for Startup Business Financing
The first months and years of operations are the most crucial for any business. During this time, many business owners make the mistake of overspending and subsequently putting the business’ future at risk.
To avoid this, it’s wise to save your capital by utilizing startup business financing. But before we elaborate more on this, let’s first define what capital is.
What is a Capital?
Capital is money needed to finance a new business, and is typically used to:
- Lease or rent a commercial space,
- Get business permits or licenses,
- Hire and pay new and existing employees,
- Buy equipment, and
- Market their business.
Capital is used to finance every aspect of a business’ operations. Because of this, it needs to be sufficient to support the first few months, or even years, of operation.
However, access to such funds can be difficult to come by for many businesses. If you’re one of them, read on to find out how you can go about financing your business.
What is Startup Business Financing?
Getting financial assistance from traditional lenders is close to impossible for startups due to strict policies. Hence, they must look elsewhere to acquire necessary funds.
This can be done through startup business financing from financing companies like Qupital SME Loan. Aside from having less requirements, financing companies are also able to customize their services to suit your unique business goals.
However, as with traditional lenders, rates offered by financing companies are dependent on several factors.
Factors That Affect Financing Rates
Your rates and monthly payments for startup business financing largely depend on your credit score.
Usually, financing companies give lower rates to businesses with a credit rating above 650. However, large down payments can also help lower rates even further.
On the other hand, high monthly payments can be expected if you have low credit and do not make a large down payment.
Aside from these, financing companies also look for collateral, such as deposits, home equity, and existing equipment to ensure you can cover the monthly payments.
Monthly Payments for Business Financing
Partner with reliable companies such as Qupital SME Loan, which has a start up equipment financing program that will work with your business’ finances. These programs ensure you will be able to repay your loan with ease.
For example, the following are some of the programs Qupital SME Loan offers, along with their expected monthly payments.