Traditional financing is what everyone gravitates to when they first start to think about opening a business. The fact is, however, that traditional financing is not always an option.
What can you do if you need financing for a new hair salon or veterinary equipment financing and a traditional small business loan is not an option?
This option is similar to investing. However, rather than finding one or two main investors, you put your business on a crowdfunding platform, and if all goes well many investors will offer what they can to fund your business. Of course, they share in the profits as well, but this is an set up that seems to be working well for many small business owners. Also, if you need large sums of money, you might want to look at other sources.
Merchant Cash Advance
If your business is already established and needs some cash, this can be a option, although it is an expensive one. Lenders loan funds against future credit card sales, and payback can be quite flexible. Rather than a fixed payment, you pay back a percentage of credit card sales, and repayment terms can be as often as daily. This makes cash flow more manageable in some circumstances. The catch is that cash advance companies charge 20 percent interest or more.
If collateral is the issue, there is always the option of unsecured loans. While they terms and rates are not nearly as favorable, they are not always terrible. It may be better than the alternative of not getting financing at all. This option may not work for all needs, but it is an option for many financing needs.
When you need financing, make Biz2Credit your first stop. We do the work of finding a lender for you by searching our extensive network to find those that offer what you need. Visit Biz2Credit.com today for more information and to get started.