Financing Your Small Business Renovation
Entrepreneurship is a long road that requires commitment, hard work, and constant growth and improvement processes. Good business owners get out of bed every day and think, what can they do to make their business better. Many answers come to their mind, and it is part of their entrepreneurial work to bring these ideas down to earth to make them realities.
The renovation processes in a company can range from the improvement of facilities, the purchase of new furniture, office equipment, or machinery, the generation of a new institutional image, and many other ways. All these options can help a company improve sales, reduce administrative or operating costs, improve productivity and, in general, achieve more profits.
Undertaking growth and improvement actions imply investing time, effort, and money. Bank financing or online lenders are alternatives that will help you start these projects; if you do not have a social security number (essential requirement), you can resort to loans with ITIN number, which only require the Individual Taxpayer Identification Number.
Learn more about the characteristics of these financing sources:
Online lenders for commercial loans
They are lenders in digital format, part of the Fintech sector, that use technology to make financial services more accessible and reach them more straightforward, faster, and more practical. They are an alternative that offers products such as personal loans and commercial loans of different types.
Some are focused on particular needs such as inventory loans or merchant cash advances or simple loans with particular characteristics such as ITIN loans, financing without the need for social security. Don't wait any longer and learn how to make your application for an ITIN number.
The requirements to get commercial loans from online lenders vary from one company to another, but these will serve as a reference:
- Have a registered business
- ITIN number
- At least nine months of operation
- Annual sales of $30,000 or $2,500 per month
- A credit score of 550 or more
Traditional ways to obtain financing for your small business
Traditional banks have some advantages over online lenders; firstly, they have a wider variety of financial products. Secondly, they offer in-person service (an aspect that many people trust more).
Despite this, banks are not friendly to small businesses, according to the Small Business Credit Survey 2021. These are the main requirements to be a candidate for bank financing:
- Good credit history and a credit score above 680
- Business plan or project
- Collateral (in some cases)
- Use to which the capital will be put
- Social Security Number
If you do not meet this last requirement, make your application for an ITIN number and learn about the options offered by online lenders.
Other types of funding to your small business renovation
One option that can add value to your company is through grants. These are grants awarded by public and private institutions to promote the growth of companies in various sectors. In some cases, they specialize in supporting projects with outstanding innovation, social impact, or specific population sectors.
If you are part of a minority, there are institutions specialized in supporting entrepreneurship in your community; some examples are First Nations Development Institute Grant, NBMBAA "Scale-Up Pitch Challenge," Amber Grant for women, to name a few.
Unfortunately, in the world of entrepreneurship, nothing is that simple. If you want to get support from an institution that provides grants, it will be necessary to have a reliable company with a well-established business plan, and you will have to compete with many other companies seeking the same objective.
If your company does not have the requirements to obtain this type of support, accessing ITIN loans is a viable option to meet the financial needs of your company. Make your application for the ITIN number and build the company you always dreamed of.
Access to better sales and income through growth and renovation projects for your company. Remember that a company that does not improve its operation, administration, and image loses great scalability possibilities. No matter what area or aspect you want to renovate, it is vital to make a clear and defined budget for the project, add 10% for emergencies and look for the right financing for your needs and payment possibilities.