Small online business owner: Looking for short term loan.

[moises9485]

I’m a businessman having small scale setup my financial condition is not so good. Some time I face problem in paying monthly expenses like water bill, electricity bill etc. I am here to find a solution for it. How can I manage all these bills? Or Is it possible to take short term loan for these type of expenses? If you people have any idea so please let me know. Thanks a lot for any help.

[georgelopez66]

It’s not only your problem, it normally happens with every one. Here I would like to suggest you that try to manage your budget in a proper way.

[manish.patel@yahoo.co]

Most lenders do not want to lend to a startup for those type of expenses, especially if you don't have personal capital involved.

You can attempt an LOC or CC, but they will want a PG and they will want your income. If your income is low, then the decision for approval/decline and CL will be greatly influenced by that factor.

When I was starting a small business the first time, I got a night/weekend part time job to pay my start up costs and overhead till it could support itself. I don't recommend financing for electric, utilities, rent, etc. Only finance (IMO) inventory or other assets that can be liquidated against the debt. Pay your overhead out of pocket, cashflow, savings or investors (capitalization). Otherwise you risk your business with debt burden prematurely.

[jycegrcia]

I think these problems are faced by everyone, so live a life to which you can afford .If you are having good business plan then you can get loan from SBA. Try it out at SBA you will find some solution.

[hardikvagadiya@gmail.com]

hello!!!

It is the most common problem in all over the world.
To prevent this type of problem first of all you should stop all unnecessary expensive.
you should choose finance management that can help you to reduce your cost and increase in saving.

[pwsolutions]

in your situation, applying for loan would be bad idea. i will suggest you to manage your expenses. if you can't pay your utility bills, how can you pay your loan off?

whatever the revenue you generate, 1st of all, gather money for your monthly expenses (utlity bills & etc) because they are something you cant live without.

[hardikvagadiya@gmail.com]

Nice thought, I Agreed...

[jana jackson]

This problem affected me. I couldnt run my business because i didn't have any capital to run it.

[JAMWOCK]

Moises, this was a major part of the financial crash...businesses looking to make payroll and other recurring expenses on CREDIT, rather than from the revenues of what was being sold.

What it means is: Look around at your business. Ask yourself"
- Why are we using so much electricity/water etc- put in energy saving tactics, like turning lights off when you leave a room- works for BUSINESSES too!
- Are your workers bleeding you dry? Taking money from the till is the most obvious, but are they eating you out of house and business in the snack room for example? Being careless with printing, paper, office supplies. PUT YOUR FOOT DOWN!
- Are they bleeding your business through the telephone bill? Long distance calls?
- Are you getting 40 hours a week of work or just presence?
- Is your rental for the business too high? Can you move to a cheaper place?
- Is your product selling at the right price? Would it be better to sell 100thousand items for 1 dollar than 1000 items for 10 dollars?
-Would adjusting the price upward help? Are you too low in price or too high- Do some market research.
- Are you advertising the business appropriately?
- Do you have too many vehicles?
It is not all about some careless businessman living above his means- sometimes savings need to be FOUND within the structure of the business, and employees have to get on BOARD or jump ship!
- Is there unnecessary equipment lying around that you could sell to cover these backlog expenses?

Just some ideas, some a bit rough, but small business people need to get tough on themselves and others if necessary.

Look closely at your revenue. If it cannot cover the utilities this month, then don't pay yourself. If there is any surplus, put it in a saving/investment account for the company so that you can expand over time.

[hardikvagadiya@gmail.com]

Yes I agreed,
It is really informative post
Thanks for sharing it. Can you Discuss something more about it.

Thanks.