Options for Small Business Financing
Your options for small business financing are very limited but alternative financing can be a great option. No matter how easy they make it sound in the commercials, traditional banks are almost never the best solution. With lengthy, time-consuming applications and lots of collateral necessary to even be considered, most small businesses will not qualify for a bank loan.
Treatment from Traditional Banks for small business financing
You know that you did not start your small business overnight. It took a lot of blood, sweat, tears, and perhaps even a bit of creative financing. However, when you are in need of additional funding, in order to make payroll for the month or to just get you through a rough patch, you may be met with a ” not today” attitude from a traditional bank.
Every business started small at one time or another. They can begin in garages,
homes, college dorm rooms or mom’s kitchen. Although small businesses provide the backbone for the American economy, it is still difficult for one to get financing and really no one now a days has a good relationship with their “banker”.
Due to the very nature of small businesses, financing is typically needed
immediately for numerous reasons, such as paying taxes or taking advantage of a smart business opportunity. You probably do not have the luxury of waiting weeks or months for an answer from the bank.
If you are fortunate enough to obtain a loan for your small business financing, it may feel like you are signing your life away when you sign on the dotted line. The terms of the loan will likely be lengthy and take you years to repay.
Alternative Lending Options
You may decide to turn to an alternative lender for assistance with your small business financing needs. While it is true that the interest rates are usually higher than loans from a traditional bank, it is a good bet that you will qualify for their help, you will get your answer the same day and it will take up very little of your time.
Nevertheless, there can also be excessive fees with some alternative lenders and these costs get added to the amount of your loan. This might extend the time it takes for you to pay it back.
The Bottom Line of Payroll Financing
Financing Solutions may provide the short term financing that your small business needs. FS offers fast cash based on your account receivables so you can get your money in just days. This type of spot factoring offers a quick application process and funds that can be repaid in a very short period.
For a small business, having access to cash when you need it may mean the
difference between surviving the month and becoming another sad statistic.
Every business needs a place to turn for emergency financing. Financing Solutions is a funding company that every small business should have in their back pocket…just in case.