Finance companies and peer-to-peer funding totaled up to 593 billion dollars, in the past year, only 7 million less than small business bank loans. As a small business owner, you may be skeptical to take on debt. It is important to make sure that those loans can be paid off through business activities. Debt-to-Income Ratio, or DTI, can be used to determine just how much debt is wise to take on. DTI is determined by dividing your business’s monthly total recurring debt by your business’s gross monthly income. Debt-to-Income Ratio is normally expressed as a percentage.
Working Capital can take your small business to the next level. Capital can help a small business manage there DTI so you do not end up with too much debt. Here is a list of different forms of loans that can help improve your business. If any of these apply to you then apply for working capital here and take your business to the next level.
1. Equipment Loan
If your company would benefit from upgrading or acquiring new equipment. Having more equipment will lead to higher productivity and in turn more revenue. Acquiring funding can help take your small business to the next level and get ahead of the game.
2. Commercial Mortgage Loan
If your company is looking to grow physically to expand an office or to acquire land for more storage for capital. Acquiring a new warehouse or storefront can lead to an increase in sales, which leads to more revenue and long-term profitability.
3. Business Credit Loan
The biggest selling point of a business credit loan is that you can use it for any business purpose that you wish. This allows you to put different amounts of funding towards different business components and does not lock you into putting all of the funding towards one asset.
4. Invoice Finance Loan
This form of a loan is ideal for your business if cash flow is a major issue. A major problem for many small businesses is cash flow and being inconsistent from month to month. This capital can be used to stay ahead of fees and have better control over your business’ cash flow.