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What to do after you get approved for business financing

Not sure what’s next once your business financing offers are in? Here’s a go-to guide for how to compare your options. 

Congratulations on securing business financing for the first time! This is a significant milestone, and it’s completely normal to feel a mix of excitement and nerves. 

To help, we’ve put together a few ideas to help you navigate your next steps with confidence and clarity.

TL;DR

This 10-minute article outlines seven post-approval action items:

  1. Celebrate your achievement
  2. Understand your financing options
  3. Assess the financial impact
  4. Compare financing terms
  5. Evaluate your business needs
  6. Seek advice from a professional
  7. Take your next steps with confidence

1. Celebrate your achievement

First and foremost, take a moment to celebrate!

Sharing this news with your team, friends, and family can boost morale and set a positive tone for the decision ahead.

2. Understand your financing options

Each financing offer comes with its own set of terms and conditions, and it’s really important to thoroughly understand these before making a decision. 

Review the interest rates, repayment schedules, associated fees, and total repayment amounts. Understanding these details will give you a clear picture of what each funding offer entails—and help you make the best decision for your business.

3. Assess the financial impact

Consider how each funding offer will affect your business finances. 

Calculate the monthly repayments and how they will impact your cash flow. Ensure that the offer you choose aligns with your business’s revenue cycle and financial projections.

4. Compare financing terms

Take the time to compare the terms of each funding offer. 

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Look beyond the interest rate and consider factors such as repayment flexibility, penalties for early repayment, and any additional fees. An option with a slightly higher interest rate but more favorable terms might be a better fit for your business needs.

5. Evaluate your business needs

Are you looking to expand your operations, invest in new technology, or manage cash flow? Aligning each potential funding option with your business strategy will help you be sure you’re making the most of the financing opportunity.

6. Get advice from a professional

Accountants, financial advisors, and business consultants can provide valuable insights and help you make an informed decision. Their expertise can be particularly beneficial in understanding complex financing terms and their implications for your business.

7. Take your next steps with confidence

Once you’ve weighed your options and chosen the best funding option for your business, you can confidently take your next steps. 

Accept the offer, complete any necessary paperwork, and begin implementing your financial plan. Remember, securing financing is a significant step toward achieving your business goals.

We’re here for this step and the next one, too

Explore financing options on our website, or get even more small business tips on the 1West blog.

If you have any questions along the way, we’re here to help. You got this.

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