Guest Post

Maximizing Finances to Build Your Business

Maximizing Finances to Build Your Business

Managing your very own business has its perks like having your own time and not being stuck with a nine to six job in front of a desk. Another is that you do not have a boss you constantly need to report to and follow, because well, you are your own boss. But perhaps one of the best things about being self-employed and owning a business is the financial freedom and endless financial potential and possibilities. When you have your own business, you are not stuck with a fixed monthly salary. You can expand your earning capabilities, dependent on the amount of time, energy, and money you spend on growing your business. However, you may have all of the time and energy in the world, but if you do not have enough money or capital to start or expand your business, then it may just go nowhere. Money can make and drive your business to be at its top potential – this holds most especially true if you give your 150% energy and time to building your business. If you need the capital to build your business up, you can apply for self-employed loans to help you in getting your business where it should be.

Self-employed Bad Credit History

If you have been self-employed ever since the beginning, or for the longest time already, chances are you may have a bad credit history. This is also highly likely if you have not yet had the chance to build your credit rating such as with credit cards, mortgages, and other loan applications. Loan application acceptance rates are dependent on your capability to pay them off. These are usually provided with proof through your earning capacity, for example with employees, pay checks should be given. With business owners, there is no fixed monthly income, so it is pretty hard to say how much you earn. A lot of times, business owners do not also get to pay themselves a monthly salary consistently because it is dependent on the monthly net income of the business. Most financing institutions base loans on credit history, and if you do not have a good one, it might just be hard for you to get approved for the loan that you need.

Get a Trusted Guarantor to Help You

Having a bad credit standing just because you are unemployed would not stop you from being able to apply for a loan. All you have to do is to look for someone you trust the most to act as your guarantor. This person should have a good credit standing and has a good financial capacity to pay off your monthly repayments should you fail to do so. Your credit standing would not affect the self-employed loan you would be applying for because it would rely entirely on the credit standing of your guarantor. The beauty in this set-up is that you would still be held as the loan owner. Meaning to say, you could actually build your own good credit line, or simply improve the one that you already have. By the end of the loan, you could already have a good credit standing if you just pay off your monthly payments on time.

Use the Money Where it Matters the Most

With self-employed guarantor loans, there is no specific place you need to spend the money you get on. Unlike with other loans such as housing loans and car loans wherein it finances your purchase of a house or a car, with self-employed loans, you have the freedom to use it in your business for whatever aspect you need it. Whether you want to spend on your operations in order to expand your business to bigger markets or whether you want to spend it on marketing and advertising to get your brand and business more well-known, you could do it – it is entirely your choice. You could actually even use it for your personal use should emergencies arise.

Repayments you Could Afford

When you apply for self-employed loans, you may think that it would be hard to actually build your business with a debt to your name. It may be so, but the money that you could get now would actually be able to help you earn more in the years to come. The monthly repayments for self-employed loans are actually quite flexible and could cater to your pay-off capacity and capabilities, depending on how your business is doing. You could have a fixed monthly payment for a number of two to three years, but if within those your years your business grows along with your net income because of the extra capital you spent, then those monthly repayments would be easier for you to afford because of your increasing monthly net income.

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