Easy Ways to Get Small Business Funding
It is easier to get a small business loan today than it ever has been. This is largely thanks to innovative lenders that use technology to make faster and more informed decisions. Historically, small businesses were considered too risky to lend money to. Thanks to these more modern lenders, it is now very possible to get a small business loan even without perfect credit.
Small businesses need financing for a variety of uses. The good news is that there are loan options for just about every possible situation. You aren’t limited to only borrowing on big purchases like real estate. These are a few examples of uses for small business funding:
- Working Capital: If you need money to help pay for general operating expenses, this is the type of loan you are looking for. It will provide you will money to run. This may be available as a line of credit or a working capital loan.
- Emergencies: It is not uncommon for businesses to face at least one financial emergency from time to time. This can require emergency capital to help cover expenses. Several loan types can cover this. Look for options with quick turnaround times.
- Payroll: Human capital is essential to the success of most businesses today. A payroll loan can help to keep your people paid even during a financial crunch.
- Equipment Purchase: All teams need tools to operate. Whether you need computers or backhoes, equipment financing and leasing can help you get the right tools for the job.
These are a few common types of financing that small businesses can take advantage of. If your business needs funding, consider these options:
- Cash Advance: A cash advance isn’t strictly a type of debt. Instead, you are selling a portion of your future earnings. The most common type is a merchant cash advance. In this setup, you pay back the money with a portion of your credit card sales.
- Line of Credit: This revolving debt works a little bit like a credit card. You can take money out of the line of credit when you need it. Once you’ve paid it back, you have the credit available again for the future.
- SBA Loan: This type of loan is backed by the small business administration. You can receive better interest rates and terms that you may otherwise be eligible for.
- Equipment Financing: This type of loan helps you pay for your equipment. Some lenders also offer leasing programs.
Now you know a little more about small business funding options. It’s time to fund your business.