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10/25/2018

4 Steps to Overcome Your Fear of Financing

Growing a small business - while exciting - can also be a little scary at times. Between keeping your physical space updated, managing staff, maintaining inventory, and all your other priorities, it’s easy to get spooked when things get busy. Getting the equipment and financing your business needs to run and expand shouldn’t frighten you. Leave the haunting and terror to the ghouls this Halloween and conquer any fears you have of financing by taking the following steps.


1. Choose a Reputable Lender
The first step to shaking off any dread of financing is to find an experienced lender who has worked extensively in your industry. Don’t feel intimidated if you haven’t had much experience. Lenders don’t expect you to be an expert in small business financing – that’s what we’re here for. Look to work with a lender who has been in business for a significant amount of time and has a team of representatives who are committed to your success. If you’ve still got goosebumps, check out the Better Business Bureau and TrustPilot for third-party validation of a lender’s credibility.


2. Secure a Manageable Monthly Payment
With the wide availability of financing from all kinds of lenders, it’s easy to get wrapped up in finding the “best deal” by comparing rates. In reality, not all lending options are alike and financing can be calculated many different ways. One of the best ways to determine if you’re getting a good value is to examine your monthly payment. Does the rate and term work for your business’ financial situation? Will you be able to pay your bills on time every month? These are the factors that should determine if the lender you’re considering is offering a financing option worth taking, not just a tempting rate.


3. Work Toward Solid Credit
It’s time to confront those skeletons in your closet. You may be worried that some of your past debts could prevent you from being approved for financing. It’s true that if you have a history of difficulty paying your bills in a timely manner, you may be rejected for a loan. Lenders understand that many people have less-than-perfect credit. It’s important that you know what factors lenders will be considering to make a credit decision so you can work on improving those factors to the best of your ability.


4. Apply
You won’t get any candy if you don’t go trick-or-treating in the first place! The most direct step to conquering your fear is to simply apply for financing. Lenders such as Direct Capital offer quick and convenient applications that can be completed at any time through any internet-enabled device. It often takes as little as a few minutes to fill out an application and decisions can be delivered in as little as seconds. When you’re ready to apply, consider choosing Direct Capital for your small business financing needs. We’ll help make your financing experience anything but a nightmare.

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