Two of the most important aspects of any small business are the ability to attract and retain customers, and the capability of getting access to cash when you need it. To do this, you have to have a great product or service and learn what types of business loans are available.
As a small business owner, you have several tools available to help you succeed. One of them is the opportunity to borrow money when you are short on cash or looking to expand. Your first step is to investigate the types of loan products available and which is best for your small business financing needs.
Different Kinds of Business Loans
You can select from numerous kinds of loans, but basically, they all fall under two categories: secured and unsecured. Both have various advantages and disadvantages.
A secured loan means that you have to prove that you have enough collateral to cover the amount of the loan. For many small businesses, this type of loan is out of reach because they just don’t have those kinds of assets.
An unsecured loan is one that you can get without having to offer any kind of collateral or guarantee. However, since the bank has nothing but your word that you will repay the loan, it is typically offered only to those business owners with a very successful company and stellar credit history.
The Small Business Association may also work with you to obtain a business loan. Although they do not directly loan funds, they can help you find lenders more willing to work with small businesses. Still, it is important to note that this process could take up to two years before you receive any money.
Maybe You Don’t Need a Business Loan at All
In business, you often don’t have time to wait. Sometimes, later becomes never as you watch a good business opportunity slip away because you cannot raise the necessary fast business funding it would require. You might also need cash right away to make payroll, replace a key piece of equipment or deal with an emergency.
If you experience these types of situations, waiting the weeks or months it will take to get a traditional loan might not be an option. A better choice for you may be a cash advance company, like Financing Solutions (www.fundmypayroll.com).
With a cash advance company, you can sell some or all of your account receivables and receive money in your account in less than 48 hours. The process is simple. They give you the quick business financing you need, based on a percentage of the value of the account receivables, and you don’t have to put off paying bills or growing your business for 30, 60 or 90 days until they become due.
Any small business in operation at least two years and requiring 100,000 dollars or less in instant business financing are eligible to apply. The application takes only minutes to complete and approximately 90 percent of the businesses that turn to Financing Solutions are approved, usually within a few hours.
Best of all, there is no long term commitment. You can repay the money in several weeks or months, when your cash flow improves.
What You Should Know Before Borrowing Money
There are a number of options for small business funding. However, taking out a small business loan is a big step that should not be taken lightly.
Before borrowing money, you should always have a solid plan for how you will pay it back. Also, you should make sure you understand all the terms and conditions before signing on the dotted line.
A loan is only helpful if it does not create additional headaches or leave you deeper in debt. You should also ensure that the method you choose does not adversely affect your credit score.
One way to avoid fast business funding hassles is to use a payroll funding company. When you have collected all the information and compared the options, you will find that this is the best choice for your small business.