Large and small businesses alike often find themselves in need of cash flow to keep their businesses afloat. Every business: a restaurant, retail location, or construction companies are all bound to have slow seasons. When this happens, most business owners run straight to banks for a business loan, while other’s look for grants from a government agency to help fund their businesses. United Business Funding is here to explain the differences between a Government Grant, a Bank Loan and a Business Loan. Let’s get started.

What is a Business Loan Anyway?

Cash MoneyTypically, a business loan is an amount of money that can be obtained from a bank or credit union. These types of loans are intended to be paid back to the lender during an agreed amount of time and with interest on the initial monies received. These types of loans are great for paying staff, purchasing new equipment or possibly to open a new location. If your business is in great financial shape and you have a previous relationship with the lender, this type of loan can be useful to help your business grow. But be aware, banks and credit unions often have piles of paperwork that need to be filled out, as well as you having to hand over all sorts of business documents for their review.

 

 

 

Own a food truck business and looking for financing

 

Is a Business Grant the Right Fit for you?

Know this, a business grant is not for everyone or every Business-financingbusiness. A business grant is a type of loan that is usually provided by a government agency with the intention that the loan does not need to be paid back. But don’t get too excited! A grant from a federal, state or local entity usually comes with very specific criteria that your business (or proposed business) must meet to be awarded cash to start said business. Also, the government does not-and will not-supply your business with a grant to cover expenses or pay off debt. That’s why this type of loan is not for everyone.

 

 

Business Funding or, Business Financing

modern coffee shopIndependent lenders such as United Business Funding, specialize in business loans for large, or small businesses, looking to grow; pay off debt, purchase new equipment, hire staff or just to obtain the cash they need to get them through their business’ off-season or slow period. It’s true, these types of business loans, while convenient and sometimes with very high dollar amount limits on the sum you can borrow, do come with several hurdles that you’ll have to get across.

There is usually a minimum number of months your operation would have to be in business, and you must be generating a specific amount of funds, per month, to qualify. While the payback amount and interest rate may be higher than your typical bank loan, these loans are fantastic for businesses with less than perfect credit. In addition, private lenders don’t have tons of paperwork and long wait periods before you see the money you need. In some instances, your company can be approved for business financing in just 24 hours, with the cash in your business bank account in less than 3 days (sometimes even sooner)!

 

Which Type of Financing is Right for Your Business?

There are so many programs and types of business loans that can help your business right now! There are Equipment Loans, Merchant Cash Advances and so many more programs available for your business. Want to know which type of business financing is right for you? Contact the professionals at United Business Funding and ask for a free quote. You could be in-the-money as soon as tomorrow!