There are many businesses that will apply for a loan at the last minute when their cashflow has run dry. This could be a matter of pride and hope they could steer through tough times on their own or simply the thought of having to pay interest for a loan if they had no choice.
This common practice is evident of terrible or no planning. It places the business at the brink of collapse and increases the challenge of pulling it out of trouble. Many business owners believe they could qualify for a loan considering the healthy performance of their business up until their current financial situation. This often leads to insufficient affordability for a loan size they need.
At Sqale Finance, we take an advisory approach in educating our clients about how they should approach loans for their business. Awareness of these products will provide a clear understanding for self-employed clients in how to leverage finance to its full potential. This will allow strategic use of finance to scale a business with increase in revenue and profits.
We encourage business owners to review finance options ahead of time so they can be strategic in planning how they can grow their business. This process, like a financial health check, will provide benchmarks as to loan size, affordability, and cost of funds.
“Don’t wait until you NEED a loan, by that time, it’s often too late” – Yuan Chong, Finance Partner SQALE
