One of the most important things you will do as a business owner is apply for small business financing. Obtaining small business financing can seem like one of the most difficult parts of starting and building a business. The fact of the matter is, it doesn’t have to be. This is why small business financing education is so important. Small business financing education will give you the knowledge needed to obtain capital in the simplest way possible.
In my 10+ years of experience in providing small business financing education to entrepreneurs, one of the main things I have noticed is they have no idea how to go about it. Before any entrepreneur or small business applies for small business financing, I strongly suggest taking a workshop in raising all types of capital (especially debt and equity financing). Here are three reasons why entrepreneurs and small business owners should invest in small business financing education:
- Increase Your Chances of Getting Approved – Small business financing education that focuses on teaching you what lenders expect of you will increase your chances of getting approved. The key to getting approved for small business financing is knowing what credit criteria you need to meet and what will get you denied. If you know this, you can prepare yourself before you apply. Better preparation will increase your odds of getting approved the first time you apply. This will make the process of obtaining small business financing much quicker and simpler.
- Make the Right Choice for Your Business – There are a multitude of business loan products on the market. What is right for one business may not be right for your business. Small business financing education that teaches about the different types of business loan products will enable you to make better choices when looking for lenders. It will also enable you to pick the business loan product that is right for you. Making the wrong choice could result in you paying high interest rates over shorter terms. This could affect your cash flow and put you out of business.
- Raise as Much Money as You Possibly Can – If you know what lenders to approach (and when) and what business loan products to apply for, you will be able to raise the maximum amount of capital that you qualify for at the time you apply. For example, did you know that if you apply for traditional unsecured business lines of credit for your established business and you already have $50,000 in business credit lines, most lenders will not approve you for additional credit lines? However, if you don’t have $50,000 in existing credit lines, and you apply for more (e.g. $500,000 or 10% to 15% of your annual revenue), you may get approved for the $500,000. These are the things you learn from through good small business financing education. The point here is that you know what to do get as much money as you can the first time you apply so you are limited in the future.
LenCred Provides Small Business Financing Education You Need
There are several ways LenCred provides small business financing education. The first way is through its eBooks, whitepapers, reports, and video tutorials. LenCred has a library of FREE content you can utilize to educate yourself on all things related to small business financing. The second way is through its Small Business Financing Advisors. LenCred Advisors are FICO Pro Certified which means they understand the ins and outs of credit and borrowing. They also understand all of the business loan products on the market and can do a pretty good job of helping you figure out what is right for you. If you want to apply for the right type of small business loan product, get the best terms and interest rates, and get the maximum amount of funding you qualify for, LenCred may be a good fit for you. Contact us today for more information.