The pandemic brought so much pain. But it would also be wrong to say that it only caused suffering. According to an article published last year, The New York Times is an excellent time to start a business.
Even a Forbes contributor agrees to this assessment. In an article published earlier this year, the columnist mentioned several reasons it is an excellent time to establish a company. If you want to start your own staffing company, you should do it now.
You may have the dream and the plan, but do you have the money to start your company? If you are in this dilemma, you should look for a company that offers working capital loans. You also need to research the type of financing that you need. To give you a head start, here are a few facts that you need to mull upon:
Small Business Loans
Most institutions that offer working capital loans also provide this option. Through the Small Business Administration, the government made it possible for entrepreneurs to get financing without difficulty. You will go through an underwriting process, which may take several weeks to a few months.
Unlike personal loans, the paperwork is far greater in number. The financing institution might ask for a pledge of collateral. Although it is possible for you to get the loan even without the collateral, you would need a perfect (or near-perfect) credit to have the financing approved. The lender might also ask for a feasibility study to determine if your company is profitable.
Unsecured Business Loans
We mentioned earlier that you can still get loans without any collateral. Unsecured business loans are one of these options. Think of it as a business cash advance. But this is a short-term solution because the maximum amount you can get is 90% of your gross monthly sales.
When you apply for this type of loan, the financing institution will ask for at least three months of business bank statements. Thus, it is not suitable if you are looking for funding to start a business. But if you are in a crunch, it may be the solution to your problem.
Merchant Cash Advance
Many lenders also offer this option. They would give you a fixed amount in exchange for your future sales. What is excellent about this financing alternative is that repayment is a pre-determined percentage, so if your revenues are slightly lower for the month, your payment would also be reduced.
If you find again in a crunch, you may also try receivable factoring. This financing option allows you to sell your accounts receivable to a financial institution.
Conclusion
Starting a company is not easy, but with perseverance, you will succeed like so many others before you. People can pursue their dream no matter their age, gender, or race.
If you want to start a staffing company, then go ahead and pursue it. Your lack of funding should not stop you from establishing your business.
With the help of Porter Capital, you can make your dreams come true. We do not only provide working capital loans in Alabama, but we also offer our partnership. Together, we will make your business succeed!
