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How A Small Business Loan Could Help Your Business

Applying for a loan is a big decision for most small businesses. The bank procedure for small business loans is tedious, and more often than not, completely unproductive: around 80% of loan requests from small businesses are denied.

 

So why waste time, effort, and manpower on something that most likely wouldn’t work out?

 

On the one hand, that’s completely understandable. However, there are several situations when small businesses can’t move forward unless they get a loan. In some of these scenarios, not applying for a loan may even be downright harmful for your business.

 
 

Growth

 

If your business is booming, you may find that your office is not big enough anymore, or you don’t have enough space to store your inventory. Or you find guests sitting on top of each other in your restaurant.

 

An overcrowded office means disgruntled and unproductive employees. Similarly, less storage space results in delayed shipments, and a crammed restaurant creates unhappy guests.

 

You need more space, but you may not have enough working capital to cover the costs. If bank loan applications aren’t your thing, you try to postpone the decision and carry on.

 

However, you can’t and you shouldn’t.

 

An overcrowded office means disgruntled and unproductive employees. Similarly, less storage space results in delayed shipments, and a crammed restaurant creates unhappy guests.

 

All of these outcomes harm your business in the long term. You can’t let that happen. Sometimes, the only way to go is forward.

 
 

New Project

 

A brilliant new idea requires capital. You may need new equipment, to hire additional people, or invest in research. Whichever the case, you most likely can’t spare the cash from your daily operations: you’ll need a loan.

 

It’s understandable if you want to avoid applying for a bank loan. But does that mean you have to give up on your new project?

 

Small businesses have many alternatives for traditional bank loans.

 

Not at all.

 

Thanks to financial technology (or FinTech), small businesses have many alternatives for traditional bank loans.

 

Companies like BlueVine provide a line of credit to small businesses, up to $200k in value. In addition, BlueVine offers invoice factoring (which means you can get an advance on your outstanding invoices), and fast decisions.

 

You could get your loan within a day.

 

Another option is crowdfunding. You can post your project on websites like CircleUp, LendingClub, or Kickstarter, and ask the public to chip in. But, this option isn’t as definite and could have you waiting an unnecessary amount of time.

 
 

Overseas Expansion

 

Another business situation worthy of a loan application is going global. Sourcing your supplies from an international vendor, or exporting your products to another country is a sensible if you want to cut costs and conquer new markets.

 

But an overseas operation requires even more than a loan. You need to establish functional and efficient processes that allow you to stay on top of business tasks, like sales or logistics.

 

You need to establish functional and efficient processes that allow you to stay on top of business tasks, like sales or logistics

 

And payments. Don’t forget that you’ll need to pay all your overseas business partners, and receive payments from them as well.

 

International bank wires are slow, costly, and unsafe. You need a faster, safer, and more cost-effective solution if you want your global operations to run as smoothly as possible.

 

This is where Veem comes in.

 

Veem allows you to send and request international payments with just a click. Your personal dashboard gives you the opportunity to track all your transactions, saving you lots of time and worrying.


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To top all that, Veem charges no wire fees and offers competitive foreign exchange rates.

 

Sign up for a free Veem account to enjoy fast, easy, and low-cost global payments.