There are a number of choices you can consider when it comes to business loan funding. If you’re starting your business and need the right financial resources to make sure you have a great location and quality products and services to give to your customers. However, getting a traditional loan could be difficult if your credit score is not particularly high or if you don’t have a borrowing history. If you’re interested in business loan funding, here are a few options that could prove useful.
For these loans, you’ll need to fill out your applications online and work with lenders virtually. The approval process is usually much shorter for online loans, and you’ll be provided with an explanation for why you weren’t approved or any documents you’re missing quickly. In some cases, the credit requirements are not as high, and you’ll have a bit more freedom when it comes to choosing the loan amount you want and your repayment options. These types of loans, Merchant Cash Advance being one of them, are best when you are clear about what you will use the business funds for, and you are already in the early stages of operating your business. Planning ahead will increase the chances that the lender will approve your loan.
This is a very nontraditional and fairly new form of business loan funding. For crowdfunding or crowdsourcing, several people will make small donations to your business. The more people you get to donate to your cause, the more money you can receive in a reasonable amount of time. If each person is only giving a small amount, they are more likely to donate to your business without feeling any pressure to contribute significantly to your operational costs. You can set up a crowdfunding account online and share the details via social media. This allows you to reach thousands of people at one time. Crowdfunding is also a potentially beneficial choice because you don’t have to submit your credit score or wait long for approval.
If you decide to ask angel investors to fund your business, you’ll have to give up about 25% of ownership to the investor until you’ve paid back the amount the investor has given you. It’s best to choose a reputable individual or company for the angel investor process. You’ll also be able to be clear about your business objectives and give all paperwork to the angel investor to make him/her comfortable with providing your company with a large sum of money.
Merchant Cash Advance
Perhaps the best form of business loan funding is the merchant cash advance. This is true for a number of reasons. When you apply for a merchant cash advance, you won’t have to worry about your credit score is taken into consideration. When it’s time to repay the loan, the company will take the repayment from the percentage of your credit card sales. The merchant cash advance is also ideal if you need money for your company right away. In most cases, you can get approved in as little as one business day, and sometimes, the approval process will only take a few hours. Talk to your financial advisor about the ways that a merchant cash advance can work for your business.