When you plan to start a business, it is essential to know how you will access financing. When we talk about funding, we don't mean just short term working capital to satisfy immediate requirements. We refer to a long-term financing plan for your firm so that you know exactly what you have to do and where you have to be at a point in time. If you have any doubts regarding this, attending a Funding Roadmap session will give much clarity. In these interactive sessions, we go in-depth into the issues we are about to touch upon in this post. If you intend to buy a shelf corporation, this post will help in understanding the long-term benefits of your investment.
Corporate credit cards are your first port of call
When you start a business, you do not have many assets or a track record to boast. Secured financing is mostly not available at this stage. For this time, unsecured lending is the way to go, as it is available without too many conditions. Your business should aim to get an 80 Paydex score as soon as possible, and you might be ready to go! For more details on these concepts, you are invited to visit our website and chat with our experts.
After the score has been achieved, it is time to put in an application for a business credit card with a financial institution. Do not just consider banks. Also, seek some reputed credit unions in your local area. They have slightly less rigid norms, and their rates of interest are more competitive than banks. If all things go well, your credit card application will be approved. The next step is to start making all your payments through this credit card and ensure that you clear the outstanding amount well in time. Once you have created a good track record, it is time to apply for more cards. You use these to increase your scale of business and generation of profits. After your first full year of operations, file your tax returns, and keep up with the prudent use of the cards. In the second year, you have the option of applying for unsecured corporate loans, in addition to your cards. If you have an excellent track record, there are considerable chances that your application can be approved. You can then move onto better funding facilities as your business grows!
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