If your business is in need of funding, there are likely a number of ways you could use the money to improve your company. In many cases, commercial business loans are used to pay for the equipment that you need to keep your business running smoothly. The money can also be used as a construction loan so that you can build a new commercial space or add on to your current building to make your company more functional for team members and customers. If you invoice your customers often but have issues with getting clients to pay on time, you can use the funds you get from business loans for invoice factoring. This supplies your business with the funds you need for daily operations until the invoices you’ve sent are paid.
Regardless of the reasons why you may be in need of commercial business loans, there are a number of terms you’ll likely have to meet to ensure that you are approved for the funds you need. The lender you select will probably want to take a look at your credit score, and if your score isn’t particularly high, there’s a good chance your loan application won’t be approved. A number of lenders will also require you to put up some form of collateral in order to get approved for a commercial business loan. This is especially true for loans that are approved by the Small Business Administration. Even if you go out of business, you’re still required to repay the loan, even if it means that you have to give up the items that served as collateral.
If you know that you need significant funding for your company but don’t think that your chances for loan approval are high, it may be time to consider a merchant cash advance. These financial products differ from commercial business loans since there is a built-in way to pay the money back. A percentage of the sales from your credit or debit cards will be taken by the merchant cash advance company for the purpose of repaying the loan. You’ll also be presented with a lump sum of cash once your cash advance is approved, and you can request the amount you need based on the purpose of the funds. You won’t have to worry about having your credit checked in order to be approved for the loan, and there are several lenders who can get you the money you need in as little as one business day.
As you can see, there are a number of benefits to getting commercial business loans in the form of merchant cash advances. It’s important to find a cash advance lender with an interest rate that will work for your company budget, as well as a timeline for getting the cash to you that will keep your business running smoothly. Talk to your financial team about the reasons a merchant cash advance could be a smart move for your company.