Using Alternatives to Bad Credit Business Loans to Open a Second Location
At a certain point in the growth of a small business, the possibility of moving to a secondary location becomes less of an aspiration and more of an immediate possibility, but bad credit can often stand in the way of this goal. Alternatives to bad credit business loans make it possible for small business owners to use the strength of their business’s monthly sales to get approved for funding with much less emphasis on their bad credit score. In order to effectively utilize these financing options for that purpose, small business owners should plan and verify a few things before they take the plunge and apply for their bad credit business financing.
Verify that the location you have chosen is desirable. Location is a huge factor that can make or break the opening of a second location. While you might love a space for many reasons, it’s a mistake to go through the trouble of applying for a bad credit business loan alternative and then the paperwork involved in leasing or buying the space only to find that, while the physical space looks great, your target demographic of customers are not stopping by in the volume that you had anticipated. Business owners should spend enough time in the area that they are looking at for a second location to get a better sense of the foot traffic as well as the competition they can expect in the neighborhood.
Ensure that your cash flow can support the expansion. Do yourself a favor and crunch the numbers involved. If you find that you are not going to be able to comfortably shoulder the expenses involved, you might want to wait for your core business’s volume to pick up. Often, business owners will be tempted to act quickly because of a good deal on a space they like, but if the expansion does not make sense for you economically, then it’s simply not a good idea. Be honest with yourself and don’t get discouraged if you decide to wait. When the time is right, you will be glad you picked your time carefully.
Know what your financing options are, especially if you have bad credit. It’s a big mistake to assume when it come to the numbers associated with your business. You may expect to be given a high enough approval from your institution of choice to field your plans, but before you actually contact your funding company, you cannot be sure exactly what you will get. It’s a much better idea to contact them and see what they offer you first, then plan around that as opposed to making arrangements that are dependent on financing that you have not yet obtained.
Photo Credit to Tony Cecala on Flickr