How to Overcome Business Financing Obstacles

Running a business comes with a number of responsibilities. You not only have to manage day-to-day operations but also take steps to maintain the success and growth of your company. From setting actionable goals to managing employees to making strategic decisions, your duties as a business owner are diverse and demanding.

Financial management is yet another critical duty that falls on your shoulders. You must ensure your company’s finances are in order by monitoring cash flow, budgeting effectively, tracking expenses, and maximizing revenue generation opportunities. Securing financing from a traditional lender for capital equipment, technology refreshes, expansion efforts, or growth initiatives may be challenging. However, there are non-bank alternatives to consider.

In this Regents Capital blog article, we discuss signs that your company needs financing and explain how you can overcome borrowing challenges and secure the financing your business needs to thrive.

Signs that your company needs financing.

Every company is unique and has its own financial situation and growth goals. That being said, there are many common reasons why businesses need financing. Whether you run a small business or an established middle-market company, you might encounter financial gaps that need to be filled to seize growth opportunities and stay competitive. Following are signs that indicate your business needs financing.

• You want to achieve a competitive advantage: Investing in new or upgraded equipment, vehicles, or technology can help set your company apart.
• Your company’s profits are increasing: You may need to purchase inventory, invest in marketing, hire more employees, or expand your product or service line.
• The market demand for your products or services is increasing: A surge in market demand for your products or services is a great sign, but it can present challenges if you lack the capital to meet your customers’ needs.
• Cash flow issues: Your company’s growth can be hindered if it lacks funding for its daily operational costs. Moreover, insufficient cash flow can make paying bills and debts on time challenging.
• Inadequate resources for innovation: A lack of funds can hamper your research and development efforts. This can set your company back in terms of innovation and advancement in an ever-changing business world.

By the numbers: Reasons businesses seek financing.

In a December 2023 business survey conducted by the National Federation of Independent Business (NFIB)¹, 29% of small business owners said their primary purpose for seeking financing was to expand their business. 26% of owners sought financing to meet operating and inventory expenses, and 24% sought financing to replace capital assets or make repairs.

Additionally, the survey revealed some roadblocks business owners experienced when applying for financing from traditional lenders. Among business owners who borrowed money, 30% were “not satisfied” with the amount and terms offered for the financing, 18% said collateral requirements were a “significant issue,” and 32% said the paperwork requirements were either a “moderate or significant issue.”²

How to overcome business financing obstacles.

One of the main difficulties in securing financing is meeting the stringent requirements set by lenders. Traditional lenders often require extensive documentation, including financial statements/paperwork, income tax returns, and business plans. This process can be time-consuming and overwhelming for business owners who are already handling multiple tasks and responsibilities.

The good news? Non-bank lenders such as Regents Capital are viable alternatives to traditional financing products. At Regents Capital, our financing solutions have more relaxed eligibility criteria, a straightforward application process and fast funding turnaround times. This helps make it easier for you to access much-needed capital.  Regents Capital offers capital leases for equipment lease financing, equipment lines of credit, and working capital loans, among others.

What’s more, Regents Capital affords you the benefits of highly personalized financing. You will work with a dedicated finance manager who will help you choose a financing solution that aligns with your company’s requirements. Our team of experienced professionals understands the various business industries and market dynamics and can confidently help you navigate product offerings.

Regents Capital is ready to help.

While securing business financing from a traditional lender can present challenges, alternative options are available to help you overcome them. And you can find them at Regents Capital. So, if you need a custom-tailored financing solution with a favorable rate and flexible repayment term, Regents Capital is ready to help.

Regents Capital takes pride in being able to assist businesses across various industries throughout the nation in obtaining the financing they require. Even if traditional lenders have turned you away with a “no,” we can step in to provide solutions. We aim to help you overcome financial hurdles by offering alternative lending options tailored to your specific needs. With our expertise and wide range of financing options, we can find creative ways to help your business secure the funding it needs for growth and success – now and into the future.

 

Disclaimer.

This Regents Capital blog post is purely educational and features general information and opinions. Nothing contained herein is intended to constitute advice or recommendations and should not be treated as such. Regents Capital is not affiliated with nor endorses the National Federation of Independent Business (NFIB).

Sources:

1 – https://www.nfib.com/content/press-release/economy/new-nfib-survey-small-business-owners-concerned-with-high-interest-rates/

2 – https://strgnfibcom.blob.core.windows.net/nfibcom/Financing-Sales-Survey.pdf