Three Tips for Business Funding in 2022

Did you know that 80% of small businesses succeed in their first year of business?

The business industry changes daily, but one thing remains the same: in order to keep your business moving forward, you need access to the right business funding. If you're just starting out, finding small business funding isn't as challenging as it seems.

But, that's if you know where to look. Below we've created a simple list of tips that will help you secure the startup business funding you need.

Keep reading to learn more.

1. Prove It

One of the most important factors to remember when you're searching for funding for a small business startup is proof. The entity lending you the funds wants to know that your business has a proven cash flow, or in other words that they will get their money back.

With a proven positive cash flow, the finance will likely feel more comfortable lending you the money you need. Your proven cash flow should not only show incoming cash, but it's also to show that you can pay your employees and other creditors on time.

2. Keep Your Payment History Positive

Keeping a positive payment history is not only important in your personal life, it's also especially important if you're trying to figure out how to get funding for a business.

Before you're approved for funding a financer will take time to look into your payment past for any red flags that could change their minds about approving your funding application. Keep in mind you can ask for a copy of the report because it might not provide good references from lenders you've worked with within the past that could support your credibility.

If this is this case it helps to have a list of references on hand to provide to the financer for them to check as they continue to review your payment background. Some things they'll look for in your background include:

• Ability to manage outstanding debts
• Pay bills on-time
• Paying your debts down overtime

The more positive your payment history the better off you'll be.

3. Do Your Research

When searching for funding it's easy to jump on the first offer that comes your way, but that offer isn't always the best offer. Just like financers will take their time to vet your company you should do the same.

Create a list of potential financers and look into the rates they offer including the terms of the lease and variety of options. Once you've gathered this information create a comparison chart and make your final decision.

If things don't work out with your top choice you've got a list of other options you can pursue and submit applications for.

Business Funding: 3 Need-To-Know Tips

Business funding can be a tricky topic to tackle, but you can do it. Not to mention funding is a key factor in getting your business up and running.

Prove to lenders you've got the cash flow to support the business and don't forget to do your research. Are you still searching for the right financer?

Contact Clarendon Funding Solutions and let us help you secure the funding you need.