Whether you are just starting your business or have been running one for years, there always seems to be a point where you could use some extra cash. Unexpected repairs, inventory, supplies, equipment, whatever the case may be, having access to funds when you need them can really help your business to succeed!
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When I started my vending machine business, I used my personal credit and applied for several credit cards. This gave me the ability to purchase equipment from suppliers, inventory from the store, and even have access to cash to open up a business checking account. The downside of this option is that my personal credit took a hit! Even paying on-time doesn’t help if you’re utilizing too much of the credit that has been extended to you.
When I found myself in need of some extra money for my business, I wasn’t able to get another credit card, and my business was still “too new” and “too small” to qualify for a loan through my bank. So instead, I looked for a line of credit. A line of credit is like a hybrid of a credit card and a loan. It allows a business owner to have access to a fixed amount of funds that they can use as needed, without exceeding the allotted amount, similar to a credit card. Like a loan, you usually apply for a line of credit once, but the best part of a line of credit in my opinion is, unlike a loan, once you repay the funds you’ve used, they are available to be used again in the future.
After doing some research online, I decided to apply for a loan with Kabbage, because they know that accessing funds for a small business owner can sometimes be a lot more difficult than it should be. They have simplified the application process, by requiring you to link different accounts to their platform, as a way to evaluate your business’ performance. This made it super easy to complete, and I received a decision in minutes! The entire process took me about 30 minutes, from start to finish!
No need to worry if your personal credit is a little rough like mine was, because Kabbage makes a decision using several factors. They evaluate your business’ performance, cash flow, and the business owner’s consumer credit, to maximize your chances of approval. So if you’re credit is less than perfect, but your business performs really well, it’s likely that you can still be approved!
I linked my business checking, Ebay, Amazon, and Paypal accounts when I applied. You can also link many other platforms like Etsy, Shopify, Facebook, and Square. There is a list available for you to reference while you’re applying for the loan so you don’t forget to connect any important accounts. The more accounts you add, the better evaluation they will have of your business. These accounts are also used to merit an increase in your credit line as your business grows.
When I looked into getting a loan with my bank, I remember one of the requirements was that the business need to make at least $250,000 annually or something ridiculously high. Then of course there was a fee to apply for the loan, that would be waived only if approved. In many cases, the bank requires a business to have collateral to put down as well. Unless of course your business made $2-5 million in sales annually, then you’re good!
This is why Kabbage was a great option for me and proves to still be a great option for many other small business owners! In order to qualify, you should be in business for at least one year, and make a minimum of $50k in annual revenue or an average of $4.3k per month over the last three months, that’s it!
Once approved, your funds are available immediately! You can receive a line of credit up to $250k! The funds can be transfer directly to your bank account using your phone or computer. The money takes about a day or two before it’s available in your account. That’s why I highly recommend that you request the Kabbage Card!
It allows you to access your line of credit by swiping for purchases and even paying bills online! I’ve used my Kabbage Card several times in-store to purchase inventory, as well as online. Trying being out of Diet Coke when you own vending machines….an angry mob will hunt you down!
Running a business is hard enough already, but everything doesn’t need to be a pain in the butt! If you need some cash for your business, take the easy route (trust me, they are few and far between!) and apply for a small business loan with Kabbage!