Tue. Jul 16th, 2019

Small Business Funding: The Right Alternative Business Financing Solution

3 min read
small business funding

Starting a business or remodeling the existing one is not easy. It requires so many things to consider and do. Arranging for business funding is among the most challenging experience you can have. This is because today’s banks are paying more attention to well-established and large businesses than yours. They often sidestep small companies.

What is the way out for you to arrange funds for your small business? Or how you will be getting the financing you need? This is where small business capital funding comes handy. The lenders that deal in this alternative business are narrowing the gap that has been made by the large bank’s lenders. With them, you have better options to avail business loans unlike from a bank. Let’s discuss in this post some of the convenient financing options the market has today.

Business Loans

In general, when it comes to small business funding options, the loan amount varies from $10,000 to $500,000. The amount released depends mainly on gross sales and no on the profit or loss that your business might be making. The loan application is approved within a day. The term against the loan funds may go up to three years. And the repayment option will also be easier when compared with the business bank account. Lenders offer loans with a simple one-page application and on providing business bank statements for the review. Usually, lenders consider all types of credits, ranging from excellent to the poor. But, you can avail loans for a business in case you are not a start-up business.

Lines of Credit

With small business funding options, you are able to secure flexible business lines of credit up to $100,000 as an alternative business financing. You will get a repayment term which is spread over 12months. You are able to avail flexible credit when you need it. Once you make up your mind to go for small business function, you may need to provide business bank statements for review, and you don’t need to have an excellent credit rating to get one. With private lenders, you have an option to get the ready cash that you can payback easily within one year.

The line of work is believed to work in the same way as your credit card does. You take the amount that you need, and you pay back with what to use. Over the last few years, getting loan approved from the traditional bank was a challenge. But, the alternative business option has made it quite easy and convenient.

Invoice Factoring

Small business funding is an excellent way for the person like you who is witnessing slow cash flow and late paying customers. In the invoice, lenders may choose to advance you an amount, ranging from 50 to 90 percent of the outstanding invoice amount. Once the customers are able to pay for the awaiting invoice, you will get the remaining percent of the amount that is pending leaving the fee which is owed to the lender.

Equipment Loans

No matter the purpose for which you are looking out loans your business. Do you need loans to buy new equipment for your business? You have the option of equipment financing from alternative business lenders. Most of the well-known lenders available online can finance 100% value of the equipment you want to bring for the business. The apparatus serves as the loan collateral, and you pay back the loan as you would a term loan.  Besides, equipment financing, the lender can also offer you a merchant cash advance. For this, you need to submit the business bank statements that show consistent cash flow.

Summarising

Thus, small business funding options are an excellent way to get financing for your small business. Alternative business lenders facilitate an easy and hassle-free opportunity to avail the amount for your business. You just need to make an application, submit documents, wait for approval and get funds within 3-4 hours in the business bank account.

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