Financing Options? We’ve got them!
The old adage “it takes money to make money” definitely applies when you run a small business. Business ownership is never without surprises; sometimes an amazing opportunity comes your way that requires just a bit more capital than you have available. Then there are those other times when unexpected emergencies or unplanned events arise and you need some extra cash.
Another type of financing option that small business owners may be familiar with are Small Business Administration (SBA) Loans. The SBA is a government resource aimed at improving the U.S. economy. It offers new entrepreneurs and existing small business owners counsel, connections, and opportunities to help support small businesses.
As a small business owner, you know that finding the capital needed to expand a business or launch a new product or project can be difficult. Usually, the difficulty lies in the inability to establish a stellar performance history or you lack adequate collateral.
There are different types of cash funding options. However, not all options are created equal. Fast Capital 360 recommends caution in applying for certain ones, such as Merchant Cash Advances. The most common type of business cash advance is the Merchant Cash Advance (MCA). A business cash advance is speedy and not credit dependent.
All businesses, from the biggest star on DOW JONES INDUSTRIAL AVERAGE (DJIA) to the smallest start up, worry about cash flow. When they look for financing options, whether it is to borrow money to improve its marketing program or acquire another company, it will likely finance the advance through one of two primary funding methods: cash flow or asset based. If they use the cash flow-based financing process, the business owner or corporation borrows money based on the projected future cash flow of the company.
Cash Advance Lenders
Tradition lenders, i.e. banks, deem businesses as “risky” if they have poor or bad credit. These businesses will find better consideration with online financing sources. However, borrowers may want to carefully consider the types of funding they need and the lenders with whom they are contemplating doing business.
In the last several years, business owners have seen options for funding shift from the traditional brick and mortar banks to online options. Until 1995, nearly all bank finances were made to small business owners. By 2012, according to a Harvard Business School study, that number dropped to about half. Online funders have moved to fill that gap. Online business financing had the second-highest funding approval rate of 71%. Analysts at Morgan Stanley predict that online funding (or “marketplace lending”) will reach $290 billion by 2020.
A business cash advance is an alternative unsecured cash advance. New businesses, bad credit, small funding requests all may prevent a business from obtaining traditional financing options. FAST CAPITAL 360 can help small business owners receive the capital they need in spite of these situations.
Unsecured Business Funding
Unsecured business funding—sometimes referred to as signature or merchant funding—is a unique type of financing. Essentially, they do not require collateral on the part of the borrower. Traditional lenders often require that you offer your home or some other asset on the line in order to qualify for funding.
Small business owners are always making sure they have enough working capital on hand to keep the business up and running. It is the money available to operate the immediate and short-term needs of your company. Your capital is often in the form of cash deposited at the bank or redeemable notes.
If you are considering funding options to help your business, you should know your options. Initially, you might think of a bank loan. Bank loans are generally for a short term—between six to seven years—and the duration can often vary based on the type of financing required. The loan is generally secured with some type of collateral.
Small Business Financing
Small businesses are a diverse group in terms of the services and products they cover and their needs. Generally, a business is considered “small” if they have zero to 499 employees. They range from startups—who depend equally on the owner’s cash injections and bank credit—and the combined resource of the owner’s and his or her relative’s savings.
Online Applications for Small Business Funding
Fast Capital 360’s online application for small business funding is quick, easy, safe, and secure. Unlike traditional bank loans and SBA loans, we don’t require any paperwork and our terms and conditions are clear and easy to understand.
Temporary Cash Flow Funding
When running a small business, unforeseen circumstances can lead to unexpected expenses causing your business cash flow to become strained. To alleviate cash flow issues, Fast Capital 360 funding can be used to provide temporary cash to keep your business operational.