There is a variety of reasons why a Nevada business owner may need financing. For instance, cash may be needed to keep up with a spike in demand or the doors open during the slow season. Those who need a loan may want to consider their debt-service coverage ratio (DSCR) when determining how much they need. The DSCR gauges a company’s ability to pay back its debt given its current cash flow.

The type of loan that a business receives may depend on its credit and sales history. Companies that have good credit and a track record of making money may be able to secure a traditional bank loan. Other options may include invoice factoring or a loan from the Small Business Administration (SBA). When applying for a loan, business owners will want to be aware of the interest rate as well as any fees associated with it.

To increase the odds of a company securing a loan that fits its needs, it is important to have the right documentation. An accountant or tax professional may be able to help compile necessary information into one coherent report. In many cases, companies will already have the data needed to get a loan, which may make the process easier for them.

Startup companies that need financing may have many options available to them. New businesses may want to consider the interest rate, loan term and other issues prior to deciding which option may be best for them. An attorney may be able to help a company compile information needed to obtain the necessary capital. A lawyer may also be able to help a startup owner find loan programs or other opportunities to secure the financing that he or she may need.