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Can You Afford To Borrow Money?

service01Before you jump into a traditional bank loan, it’s important to answer the following checklist:

  • Can you pay back the loan?
    • Start by calculating the cash available for your business. Cash available, or cash flow, is the movement of money into and out of your business, measured over a certain period of time — usually weekly, monthly or annually.
    • Interest rates
  • Will you pay back the loan?
    • Good Credit— FICO scores, in addition to DTIs (debt to income ratio) and DSCRs (debt service coverage ratio) are heavily weighed by banks to determine approval.
    • Banks tend to put more emphasis on credit scores than other, nontraditional lenders like Boost Business Funding. So if you don’t have great credit, you should consider shopping around.
  • What are you going to do if you can’t pay back the loan?
    • Collateral or capital — having assets that the bank can claim if you don’t pay up or extra cash flow that you can redirect toward your loan payments. This is a huge risk.
    • For business owners without this cushion, the backup plan takes the form of what lenders call a personal guarantee. This means that if the business is unable to repay the loan, the business owner will be held personally responsible for it.

Know your options. Alternative financing solutions through Boost Business Funding present key opportunities designed to support your business for the long term.

  • Unlike a traditional bank loan, there isn’t just one application for one type of lending method. They are several:
    • Merchant Cash Advance
    • Inventory/Purchase Order Financing
    • Invoice Factoring
    • Asset Backed Loans
    • Equipment Leasing
  • Repayment rates are based on your cash flow- so you never go underwater.
  • Boost wants to watch your business continue to grow over the years by establishing a financial support system able to solve any need.

 

“They have my best interest in mind” said Boost Business Funding client and Happy Tails Kennel owner, BJ Pim. “They don’t do anything I’m not able to do that will cramp my business.”

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