Borrowing Small to Grow your small business

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As a small business or self-employed person cash flow is vital and keeping your budgets under control is essential. Starting out things can be tight; you need to gain a reputation and you may have costs to carry each month that are all part and parcel of working for yourself. Small business finance is something many small business owners no little about and they would much prefer doing what they do rather than spending their time in the books. But finance is essential and finding ways to cover your back, cover short term expenses or just buy a few days of cash flow before payments clear is where many small businesses come unstuck.

Small Short-Term Lending

In the past getting a business loan of even the smallest amount was close to impossible. The very thought of having to meet your bank manager and as good as getting down on your knees for a loan was enough to put you off borrowing so you just didn’t. Thankfully banks and other lenders have started to understand that small business needs finance and companies such as HittaSMSLan have begun offering innovative mobile and SMS loans that are perfect for many a small business owner. Short term lending, some experts say, is a necessary part of doing business today. It is widely believed that the savvy business owner or entrepreneur should factor SMS or mobile lending into their financial strategy.

Accounting for success

SMS and Mobile lending have had a rough ride in recent years. Notorious for higher than average interest rates and often high fees the industry has come under the spotlight and globally it has begun reforming itself. The short-term loans offered to small businesses by small lenders or mobile lenders become a valuable tool in keeping a self-employed or freelance worker alive. Over the top interest rates can kill the business of both the borrower and the lender but reputable lenders can soon become kingmakers in the small business world. Working hand in hand the borrower and the lender can mutually benefit and small business can thrive.

Why borrow?

Borrowing is a good way to manage cashflow. Even smaller items such as a new laptop can initially drain a small business when paid for in cash. Careful consideration of interest rates and repayments begin to make sense when it comes to business operations. Big businesses are often only trading because of their borrowing, a small business can do the same on a smaller scale. When borrowing a relatively small amount over a short period of time to purchase an asset to the business that helps long term income creation a small SMS loan makes a sensible option. Spread over a couple of months the loan and the asset soon pay off and long-term thinking wins over a short-term decision.