Securing funds is part of sustaining your online business’s growth. Apart from investors, financing platforms like Vyze are a reliable source of money to pay for your expansion. However, not all startups automatically qualify for loans. Remember these three factors to improve your chances of obtaining the e-commerce financing option you intend to apply for.
Impressive Track Record
Traditional and unconventional lenders have unique requirements, but many of them want to offer credit to established businesses only. From a business point of view, they want to lend funds to low-risk borrowers. Without any operating history, it’s difficult to tell whether your startup is going to succeed and generate enough revenue to pay the loan back.
If your e-commerce store isn’t in business yet, you would most likely have to bootstrap it to get it off the ground. Other than using your personal savings as capital, you can turn to your friends and family for extra funds. Also, credit card loans are handy options to prevent your financial reservoir from running dry as you try to prove your proof of concept and generate a sustainable profit.
Detailed Business Plan
Once your startup has a track record of being profitable, prepare a thorough business plan when courting lenders for extra funds for growth. Financing providers would want to capture your vision and know where you intend to bring your startup in the next couple of years. Without a promising business plan, it can be hard to make lenders feel confident about letting you borrow the amount of money you need.
Existing Business Credit
To apply for a loan under your company’s name, you should establish business credit first. It should inspire optimism, considering your payment history will be reported to major credit reporting bureaus such as Experian.
The right to obtain credit is earned, not given. Do whatever is necessary to improve your image in the eyes of lenders to maximize your business’s growth.