Would you agree infusing capital into your business is one of the most impactful strategic decisions you can make to grow your business? Whether you accessed the once-in-a-lifetime PPP money or received grants during the pandemic, it’s not too late to revisit capital resources for your business. There is still more money available! In fact, billions of dollars set aside for women owned businesses are going untapped. Why are you robbing Patty to pay Pauline? Are you scared to take on additional debt? Or are you like me and not sure if you have time to navigate the paperwork? Here are some ways to simplify accessing capital resources.
When I needed more capital to grow my business, the three main considerations outside of increasing my sales were certifications, grants and loans.
Trillions of dollars of contracting opportunities are earmarked for small and diverse businesses via supplier diversity programs by the federal government. However, you have to be approved via various certifications to compete. For a details on attaining one of the beneficial certifications for doing business with the government check out HC facilitator Towanda R. Livingston’s guide to WOSB/EWOSB here. Remember the government buys everything and uses all kinds of services; even yours!
Private industry and local governments are providing grants Loans are being offered to small businesses at unprecedented amounts. A little explanation on your company and how you will use the money is typically all that’s required. So consider preparing a general grant package so you can save time using essentially the same information for multiple
grants. Check out our grants and resources portal here to see current available grants.
Know before you go, there are three main things that lenders look at to give you financing:
1. cash flow
If you’re trying to get an SBA loan (which typically has the most favorable terms for small business owners) you have to have all three. You have to have good personal and business credit, you have to have collateral that’s equivalent to the amount that you’re actually borrowing, and you also have to have cash flow verifiable for two to three years of tax returns.
Our Her Corner Peer Group Financial Module addresses how we look at funding our business to accelerate growth and takes an even deeper dive into The six C’s of credit. Contact us at [email protected] for more info.
Yes, nothing is completely free and your valuable resources of time and effort will be spent to acquire these things, but the ROI could be tremendous. As well, you will get a better handle on the state of your
business to make informed decisions. Two for one! Are you going to tap into that or let it pass you by?
You got this, so let’s get it done!