If you own a small business, you know that working long hours and juggling multiple tasks is standard operating procedure. It’s also important to remember when times get tough the success of your business is dependent on how well you manage your business finances. Thankfully, there are many financing options for small businesses available to help you keep your operation running smoothly.
Short Term Business Loans
Business owners seek out Short Term Business Loans when they need immediate funding. The business owner is aware that the loan is to be paid back over a short period of time. These loans are structured so that the borrower receives funding and the payback amount, and fees included in the transaction, are routinely determined up front. When it comes to interest rates and payback terms this is the best alternative financing option for business owners that do not meet–or do not want to deal with the requirements, and time it takes to get a loan approved–through traditional lending institutions. Short term business loans payback terms tend to be spread out anywhere from six months to three years.
Unsecured Business Loans
Unsecured business loans are a great option for small business owners that require funding for their business but do not have collateral to offer up front in exchange for the business financing they require. Unsecured Business Loans usually feature daily, weekly, and/or monthly payback options. Funding for your business can often take place in as fast as 24 to 48 hours. Depending on the size of the loan there may be very few documents required during the application process. Unsecured loans are approved without the use of property or other assets to be used as collateral. The terms of these loan types, including approval and receipt, are most often contingent on a borrower’s credit score. Typically, borrowers must have high credit scores to be approved for unsecured loans.
Working Capital Loans
Working Capital Loans are a great resource for small business owners that require funding to help finance the daily operational expenses of the company. This can include costs such as payroll, rent, and debt payments. Working capital loans are simply corporate debt borrowings that are used by a company to finance its daily operations. This loan option offers flexible payment structures so daily, weekly, and monthly options are often available. Some other advantages Working Capital Loans provide are that there are very few documents required to secure business financing. Lastly, with this type of business loan, the entire application and funding process can take place as quickly as the same day.
Depending upon the type of equipment you are looking to add to your business, its reliability, and whether the intention is to keep it as a long-term asset, an equipment loan could make sense for small businesses. Leasing equipment, while an option, can in some situations end up costing the business owner more than an unsecured business loan. Many businesses choose to finance the purchase of equipment rather than lease. Equipment Financing shares many of the characteristics of a small business loan. It comes with higher payments than an operating lease, but you are the legal owner of the equipment. If you’re certain you want to own the equipment once the term is complete, this is the right financing structure for your business.
Merchant Cash Advance
Businesses that accept credit cards are turning to Merchant Cash Advances for access to quick capital. For small businesses that are just starting out–to established mid-sized businesses–a Merchant Cash Advance is a quick and easy way to obtain funding, by leveraging your future payment card sales. Every business is different – that’s why there are multiple products to fit your unique needs. Merchant Cash Advances are usually the best option for borrowers that do not want the burden of fixed payment schedules. When you apply for a Merchant Cash Advance your recent months of debit and credit card processing will determine an approval amount. Capital that you can use for any business expense and pay back through a small, fixed percentage of your future credit card sales. The best part? You won’t need to change your credit card processor.
There are multiple business financing options that business owners do not know are available to them when times get tough. United Business Funding offers Business Financing options, like the ones above, so if you need financing for your business, give us a call toll free at 888-351-3863.