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.
One popular financing option for small business owners are Small Business Administration (SBA) Loans. The SBA is a government agency aimed to boost the U.S. economy. It offers starting entrepreneurs and existing small business owners advice, resources, and opportunities to help them flourish.
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—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.
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.
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.
When exploring funding options to assist your small business, you should know your choices. The first thing that might come to mind is a bank loan. Bank loans are primarily for short term use—between six to seven years—and the duration varies based on the type of financing needed. The loan is generally secured with some type of collateral.
Cash flow is the air in any businesses sails, so any kind of lull or decrease in it requires immediate attention. Sometimes when this happens a small business advance is necessary to help right the ship. When looking for financing options, whether it’s 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.
Tradition lenders like big banks, claim businesses as “risky” if they have below average or bad credit. These businesses will find better consideration with online financing sources. However, borrowers may want to carefully consider the kind of funding they need and which lenders they’re doing business.
No small business is quite alike. They offer different services, provide different products and have different locations. 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.
Over the past few years, funding options have heavily shifted from traditional bank loans to an array of 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 funding had the second-highest funding approval rate, with 71%. of analysts at Morgan Stanley predicting that online funding (or “marketplace lending”) will reach $290 billion by 2020.