How can a small business get access to some quick cash? It’s not an uncommon problem, due to the daunting task of running a business. From a new location or equipment to an unexpected repair, unexpected items can face a business and force it to take care of the costs.
A few solutions can prove to be a viable answer in this though situation. It’s crucial that the business examine its options closely before taking the next step.
A Look at Three Small Business Funding Options:
For businesses in a tough position – or perhaps a good one with a bold upgrade – the following ideas can help with small business funding:
1. Traditional Banks: Small business loans are available for a number of reasons, including very specific purposes such as disaster loans. These generally work like any other loan, with an application process, credit check and other eligibility requirements, and a rate that must be paid back over a certain term. Some businesses and credit scores won’t qualify for a traditional business loan, however.
2. Family and Friends: A family member or friend may be in a position to help out a small business owner in need of funds. In the right situation, it’s a great option with a reasonable interest rate. Yet, plenty of horror stories exist with complications that have undermined these relationships.
3. Business Cash Advances: A cash advance grants a business owner a certain amount of capital in exchange for a future percentage of sales. The business will not have to repay a fixed amount, but rather a percentage that grants an impressive amount of flexibility. Cash advances are generally easier to obtain than traditional business loans, which is an important point for businesses with a short track record or a lower credit score.
Weighing the Options
How can a business weigh its options for obtaining funding? Each of the above options carries its own advantages and drawbacks.
A small business should carefully approach each option; once all the data is obtained, the rest is academic.
Some traditional banks have tough eligibility criteria, which extend to a small business owner’s credit score and the state of the business. Family and friends may not be an option for everyone, due to a lack resources, or unease with such a situation.
Interested in a cash advance? This easy-to-obtain source of small business funding is popular and versatile. You can contact Sterling Funding for more information and to receive a quote immediately.Back To Blog