A Line of Credit is Recommended for Your B2B Startup
Using personal savings, taking a second mortgage, credit cards and/or friends and family money are how most business owners fund their fledgling enterprise out of the gate. However, these initial resources are generally limited and, should your new business actually begin to get traction and generate revenue, what happens next?
How will your new, growing B2B company support its growth in accounts receivable and – in the case of manufacturing and wholesale distribution – its inventory requirements? If your company is starting to generate sales or will be doing so in the near future, contact Allied Financial now and apply for a line of credit.
Having a line of credit in place early on will help you grow your business confidently. And, as a bonus, you will be able to sleep much better knowing that your investment and that of your friends and family’s will be much more protected with a line of credit in place supporting your company.
Why Having a Working Capital Line of Credit is the Right Choice for Your Business
As your business grows, the funding provided by Allied will offers many benefits such as:
1. You will not have to dilute your ownership further by seeking additional equity investment.
2. Your initial equity investment and that of your friends and family will increase in value as your company supports itself with a line of credit in place.
3. Unlike high-cost, rapid-repayment online cash advances, Allied’s lines of credit are revolving in nature and are structured to grow as your business grows. (The repayment of on-line cash advances are so rapid that, as your business continues to grow, your cash flow pressure actually increases.)
4. With Allied, you are charged an interest rate tied to prime with a service charge based on the cash employed – unlike online cash advances where the fees/charges, are charged up front in most cases.
5. In conjunction with our accounts receivable based lines of credit, Allied can also make advances against inventory, machinery and equipment, and/or real estate.
6. As an entrepreneur owned and operated company, Allied can fund your loan request quickly and will continue to meet with you to discuss your evolving financing requirements.
Allied Financial Offers Flexible Business Financing to Help Companies Grow and Prosper
Allied Financial recently got a letter of recommendation from a start-up consulting company that applied for a line of credit shortly after its LLC formation and after it had received two purchase orders/contracts that were due to begin within 60 days.
These purchase orders/contracts would require the new LLC to hire a number of highly compensated employees so in order to meet the projected payroll a line of credit was needed. The recommendation letter stated:
“I wanted to write and thank you for the excellent service you have provided this year. You and your team’s flexibility and willingness to work with me towards a common goal made possible the 10X growth we were able to achieve. The line of capital enabled me to hire the people I needed to, when I needed to, and I am grateful for it. I will definitely recommend you and your services to other small business owners as they look for options to finance their growth”.
Learn More About Working Capital Lines of Credit
Please call me, Bob Vanaman at 856-481-4790 for a free consultation on your company’s working capital financing options with Allied Financial of Delaware Valley. Our team can quickly approve and fund a creative, flexible funding plan for your business!