Payday loans have a variety of uses, including helping to get you the cash you need to cover unexpected personal emergencies while you work with your startup. Startup costs can be numerous, and some may come unexpectedly when you’re least prepared. It’s quick and convenient to apply for payday loans, making them an accessible financing option for those encountering unexpected personal financial hardships while trying to launch their budding enterprise. Here are some of those emergency situations and solutions startups often see come up.
Replace Lost Inventory
No matter what you do, you simply can’t protect your startup from everything. In the case of natural disasters, fire, burglary, or vandalism, your insurance should cover any damages to your inventory, but that’s not always the case.
When inventory is damaged or destroyed, you’re left without anything to sell, which is akin to trying to steer a boat without a rudder. Insurance companies have quite a reputation for finding ways around paying on insurance claims, and when your inventory isn’t covered, you’ll need funds to replace it and stay in business, as soon as possible.
Payday loans can be simple to acquire and can act as a buffer in such an emergency; allowing you to replace lost or damaged inventory quickly and work on recovering the cost of damages. You don’t want your new business left without anything to sell, and damaged inventory isn’t going to attract many buyers. Try securing a payday loan should you unexpectedly find your inventory damaged or lost in an accident or disaster.
Sudden Damage to Buildings or Vehicles
The same disaster or accident that destroyed your inventory may have also done significant damage to your storefront or company vehicles. A damaged storefront is sure to keep customers away, and dysfunctional or non-operational vehicles mean no travel. For travel-dependent businesses or delivery services, this can be nearly fatal.
Emergency funding in the form of a payday loan will help cover the cost of the damages and provide a boost to any insurance funds you may receive. You’ll likely find that no matter how much insurance you have, sometimes it’s just not enough to cover all of your damages; especially when something like a fire breaks out in your store. Having backup funding will keep your business afloat until you can recover the total cost of the damage and get your business running at maximum capacity.
There are many legal fees you do not expect when starting a business. Business filing fees or attorney fees are part of a startup’s expenses and shouldn’t be overlooked. If you need quick cash to pay for unexpected legal or attorney fees and your savings won’t cover it, you’ll want to find a convenient funding source—especially if you need the money in a hurry.
There are some requirements to obtain payday loans, but these can be fewer or different from traditional banking routes. If you opt for an online payday loan, the application process is convenient and can be done from home. Choosing this route will ensure you have what you need when you need it, without endless paperwork and bargaining.
Personal Financial Need
There are some payday loans that should only be used for personal, unexpected emergency expenses, which is something you might face if your small business is your only source of income. If all of your personal income is being investment in getting your startup off the ground, and disaster strikes, it can leave you without the funds you need to get through an unexpected emergency. To avoid jeopardizing yourself and possibly even your credit, you can apply for payday loans to potentially help get you through this unexpected time of financial crisis.
While you probably shouldn’t put all of your faith in your startup, there’s nothing wrong with having a backup plan should your personal finances take a hit. Even with savings, some emergency expenses may exceed what is saved. Without a backup plan, you could be left in a financial pinch, which will affect the way you run your business. Make no mistake –stress affects how you perform on a daily basis, and stress from personal financial trouble can cripple your productivity.
While payday loans are often associated with personal use, they can also help startups stay on track when faced with unexpected expenses or emergency situations. When disaster strikes, don’t leave your business to the wolves; have a backup plan for both business and personal finances so you can stay on track and keep your business running well into the future.