- Payment processors resembling PayPal, Square, and Stripe supply loans to small companies that may vary from $500 to over $250,000.
- These loans are sometimes based mostly on the gross sales a enterprise makes through the payment processor, so that they’re usually simpler to get than conventional financial institution loans.
- Cupcake store proprietor Kelly Kandah began her bakery with private financial savings however stated she wasn’t in a position to develop as shortly till she began utilizing loans through Square.
- Here’s how she did it and the way small enterprise house owners can apply for comparable loans.
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When Kelly Kandah began her first cupcake store, Colossal Cupcakes, she hadn’t absolutely realized what she’d gotten herself into. Until she noticed the road out her door on opening day.
Kandah, 33, stated she knew cupcakes have been having a second, based mostly on all of the outlets she’d seen popping up in New York City, the place she lived for a 12 months. But she hadn’t ready for such excessive demand in her hometown of Cleveland, Ohio.
She had a couple KitchenAid mixers to begin, however did not have the $10,000 commercial-grade mixers she wanted. Meanwhile, her low-tech money register stored prospects ready in line too lengthy.
“I had to really quickly turn this dream or vision of a cute little bakery into a mass production cupcake factory,” Kandah informed Business Insider.
The key to this, she stated, was securing the fitting loan on the proper time — and never from a conventional financial institution.