Financial Problems Faced by Startups and How You Can Solve Them

 Posted on March 20, 2025 in Small Business Loans

When a company is in its infancy, owners may face several problems before it can really start to grow. Many of these logistical problems come down to a limited supply of money. Unfortunately, the traditional process of getting approved for a loan does not always work for small business owners. By working with a funding advisor for a non-traditional lender, you can find a financing solution that works for your startup business.

At Fidelity Advance, we know the struggles that business owners face with daily operations and getting off the ground. Our San Diego financing advisors are here to assist you with a hassle-free application for funding, whether you need quick capital or continuous borrowing.

Inventory and Payroll

As a business owner, you will always have some regular expenses to take care of. If you run a store or a restaurant, you will have to maintain a constant supply of product to keep your customers happy. And in almost any business, you will have employees to take care of with payroll. These regular expenses can put a strain on your finances, especially if you do not have much short-term capital to work with.

A business line of credit can address your need for steady cash flow. Rather than a lump-sum payment, a business line of credit lets you borrow money at will up to a certain amount. This can be useful for covering routine expenses that you can anticipate on a monthly schedule.

Real Estate

The choice of venue can make or break a small business. For instance – is it in an area with high customer traffic? Is it big enough to accommodate your daily operations? Can it be easily located by your consumer base? Of course, if you are just starting your business, you may not have a building yet.

Getting a venue for your business can cost tens of thousands of dollars upfront. By applying for a term loan, you can get a lump sum to cover the cost of real estate. A term loan is paid back in regular installments, and your building may be kept as collateral for security.

Dry Seasons

Not all businesses are profitable year-round. For example, many businesses experience peak sales during summer, attracting tourists or people on vacation. During dry spells for your business, your business might be put under serious strain from sporadic payments. 

If you are struggling to budget for a less-than-profitable period of your business, a merchant cash advance can help sustain your business. A merchant cash advance can provide you with a lump sum of cash to handle payroll and other necessary payments for your daily operations. Instead of a regular repayment schedule, a merchant cash advance is paid back through a percentage of your daily credit card sales.

Contact a San Diego, CA Funding Advisor Today

Are you struggling to find necessary working capital for your business? At Fidelity Advance, our California financing team can provide you with the means to grow your company with a quick application. Call our offices at 888-316-2246 to schedule a free consultation today.