I don’t want to say it but I am doing something really STOOOOPID
Here I am, stressing myself out about having to spend so much money on buying goods for my business when…. Hold on wait….. THE BANK GIVES YOU MONEY!
OMG…. I just felt a big weight being lifted off my shoulders.
The bank is there for a reason, many reasons I might add. Before you even hit me with the “Girrrllllll! Like seriously?” I want to show you how important it is for you to consider this method (borrowing from the bank) for building your empire.
- Purchasing Large Assets
Did you know the bank is more likely to give funds to a small business who is registered to purchase large assets such as real estate or expand their operations rather than to you an individual? Look at it this way, if you need to expand your operation, it simply means your business is doing very well ANNND you are not exploiting your profits. Of course, bank loans for property take the form of a mortgage and run between 25-30 years term loans. The property can be used as collateral.
2. Purchase Stock
Banks do make loans to small business owners to purchase inventory no matter what it is your are selling. The bank will do a full investigation of your and your business before they lend the money however, it would be honest for you, the proprietor, to pay back the bank after you have made a profit. Thus safeguarding your business reputation.
3. Supplement Capital
“Capital – wealth in the form of money or other assets owned by a person or organization or available for a purpose such as starting a company or investing.”
There are times when a small business will need capital to meet their day to day operations until their earnings are sufficient to cover the working capital needs. Yes, in case you were wondering, banks do lend businesses money with this reason in mind to help them get off the ground or out of a sticky situation. These types of loans however, may carry a higher interest rate since the bank consider them ‘riskier’
*** what if they never get their feet off the ground again?***
For these three simple reasons mentioned above, I urge you to consider borrowing a loan from the bank to kick start your business idea.