About 2/3 of business survive 2 years in business, half of all businesses will survive 5 years, and 1/3 will survive 10. According to a US Bank study, 82% of businesses fail because of cash flow problems. However, 75% business owners say that they’re confident in their own business.
Even though you aren’t a starter and think your business is near to perfect, your business may still have room for improvement. Let’s find out what advantages businesses have when applying for financing after being operational for more than a year:
- You Know Your Financial Patterns
New businesses have a fluctuating monthly sales volume. Unlike new businesses, you already know your financial patterns and can show the lender your financial history so that the lender can approve you more easily.
No matter you’re a new or an existing business, it’s important to turn to a reputable business loan provider and payment processor like First American Merchant for financing. Firstamericanmerchant.com is a respectable alternative online lender that specializes in the high risk sector and offers the best short term loans in the industry. Moreover, FAM has an A+ rating with the BBB. With First American Merchant, you can enjoy exceptional business funding terms and the lowest possible rates in the industry.
- You Can Follow the Right Industry Trends
The experience you have gained while running your business will make it easier for you to recognize the industry trends and take better steps to fight the competition in the field using additional working capital. Financing can help you implement certain technologies and develop new products that have already brought success to other businesses.
- You Can Use Small Business Opportunities to the Best
Since now you’re more experienced and skillful as a business owner, you can be more sure about what areas of your business you should focus on.
- You Can Pursue Small Business Opportunities You’re Interested in
Since you’ve been operating for more than a year, you’re likely to be interested in a number of small business opportunities that can help your business advance. Now, you have a better idea of how you can take your business to the next level.
Access to working capital can be crucial for businesses in a number of situations like when expanding your physical location, building credit for the future, getting the necessary equipment, purchasing more inventory, or acquiring fresh talent. You, as an existing business, can enjoy more benefits from financing as compared to those who’re just starting.