A revenue loan can be the answer to your business funding problems.
Let’s face it, every business reaches a point where they need to seek out loans in order to grow. Needing a loan isn’t a bad thing. It’s a sign that your business is in the growth phase. Investors, lenders, and underwriters are no longer requiring physical collateral from borrowers. Revenue loans are the newest trend in funding for businesses. To begin, let’s start by discussing the four phases of business.
Startup
Usually the first 3 years of business when your company is starting, building customers, and developing the service model or product base is the startup phase. Unfortunately, a large number of businesses don’t make it past this three-year mark and fail within the startup phase.
Growth
The growth phase occurs as your business begins to increase sales, hire employees, and expand your service model and product base. Growth phase can last for a number of years depending on your ability to maintain. If you plan to sell your business, growth phase is the best time to do it.
Maturity
When your business hits a plateau this is considered maturity. Sales will begin to level out and become more predictable. Similar to growth phase, mature phase can last a number of years. Mature phase is the last opportunity to sell your business.
Decline
When sales drop and your business is struggling to survive, you are in decline phase. Decline phase doesn’t always lead to the end of your company, but it is important to consult with an expert to create an innovative strategy to revive your company.
Owners in each phase can qualify for unsecured business loan bad credit does not disqualify you. A revenue loan can be useful in all phases of business. At Financing Your Way, we help you determine which phase your business is in and help you find funds, no matter what your current credit level is.