It is not a new revelation –small business owners need funding from an external source in order to get fast and consistent working capital to execute daily transactions and transference. According to the data of 2015, small business constitutes 30.2 million of the US economy. These massive numbers were the reason behind the advancement in the small business loans industry.
Want to expand your business? Small business loan is available. Want to buy inventory? A small business loan is available. Want extra cash flow to manage daily expenses? You are right, small business loans are always there to quench your financial thirst.
Let’s look with a rational insight now; you have two lenders: Traditional and Alternative. Other than these two major possibilities, we have angel investors, crowdfunding, and personal loans. If you go with the latter there are many risks involved.
In order to make a calculated decision, first, one needs to address the following questions:
- Why are you applying for a small business loan?
- Where do you plan on adjusting the monies?
- Will you be earning enough money and making profits to repay the lenders on time?
Now, looking at your financial credibility:
- What is your current credit score?
- For how long have you been running your small business?
- Where does your Annual Revenue stand?
- Are you facing any foreclosures and bankruptcies?
These questions need one’s attention and one must do homework on them to pick the perfect fit.
A Plethora of Small Business Loans
The goal of lenders is to fashion loans in an impeccable way so that every small business owner can have an oxygen supply, financial support, in the hour of crisis.
- Small Business Administration (SBA) Loan:
Since this industry is flourishing day and night, the US government offers low-interest loans for owners who didn’t qualify for a traditional loan. You can take a loan ranging from $5 – $5 million. With loan term falling from 5 – 25 years, 7.75% interest rate and fast 2-day approval, this deal is hard to miss.
- Merchant Cash Advance (MCA):
This work just like a credit card, so if you want to control on when and how to use the funds MCA is the best option for you. In this, a financing company gives a set amount and capital and you need to repay it with interest, of course. You can get funds ranging $2500 to $250,000 with fast approval as little as two days.
- Business Line Credit:
If you carry a major deal of business transactions via credit card, then this might be a perfect solution for your financial crisis. This allows you to borrow maximum credit limit and you get to repay on your terms. The interest rate ranges from 7% to 25%. The funds will be in your hands in 24 hours.
- Equipment Financing:
Want to buy upgraded technology for your farming business, or need to upgrade your construction equipment? Equipment financing is your window, where the lender will give you the cash so that you can easily purchase the needed equipment. The loan term of this business loan depends on the life expectancy on the purchased equipment, and the interest rate ranges from 8 – 30%
- Short-Term Business Loan:
If your financial needs are temporary, this is the best financial gateway for you. Get $2.5K – $250K with interest rate starting at 10% and use the funds strategically and wisely to let go of all your financial troubles and watch your business get profitable day by day.
- Working Capital Loan:
Use the working capital loan to increase your business operations, expand your wealth, make tax payments on time, take your marketing and advertising game up a notch and much more. You can access the funds ranging from $5,000 to $500,000. So don’t worry about the paper –money, let alternative lenders worry about finances.
These are a couple of funding options that most small business owners use, if none of these help you out then ask your financial assistant, they will provide you with a loan that fits your needs the best, for the funding options are endless.
How can you get a small business loan?
Nowadays, every lender has an online presence, and Merchant Advisors have one as well.
- Go to their online link, and click on ‘Apply’. Give basic information concerning your business. You will be asked about your credit score, annual revenue, profits, and bank statement.
- Once you have entered your self’s and your business’ demographics, the financial experts and the lending company will suggest the small business loan that will help your business to grow.
- The loan approval will only take two days at maximum, once you have the money. Take the amount that you need, utilize it wisely and know that you can always come back for more.
Fancy Papers that you need to summon
- Business Bank Statements
- Balance Sheet
- Profit and Loss Statement
- Business Debt Schedule
- Personal and Business Tax Return
Things that you must be careful about
Usually, most alternative lenders have documented every type of fee that is involved. But just to be on the safe side look out for:
- Any hidden Application Fee
- An undocumented Guarantee Fee
- Check Processing Fee and Pre Payment Fee
Last but not least, choosing a small business loan for your business is not a decision that one should take lightly. Don’t look for shortcuts for they won’t do you any good, if you can think you can repay on time and if you feel comfortable with the amount and interest rate, only and only then apply for a small business loan.
Want to know more about a small business loan? Head over to the website and read our blogs for tips and tricks. And while you are at it, do apply for a small business loan to cover your financial problems. For daily updates, you can follow us on Twitter (@Onlinecheck) and Facebook (@Onlinecheck). If you have any query feel free to call us on our toll-free number at (833) 827-4412, our experts will guide you.