Easy Financing Small Business Loan Options


Jeffrey Bumbales

Conventional lending avenues take time and often require a pristine credit score… The words easy and financing do not always go together.

Yet, as a small business owner that is exactly what you need to obtain the funding your business requires. Conventional banks and the Small Business Administration offer loan options, but they require that you meet very strict credit criteria and can take as much as 90 days to process.

Sometimes time is of the essence; you need to seize an opportunity when it is presented. You want things to move along at a reasonable pace and you don’t want to spend countless hours with paperwork and documentation only to be denied.

According to Bloomberg.com, if your business is a startup or relatively new, your financing challenge is even greater and a traditional loan may be difficult if not impossible to obtain.

The good news is that there are some easy financing, small business loan options out there. Some have better terms than others, so it pays to understand them completely and choose the one that is best for your business.

Financing Your Business With Credit Cards

With low introductory interest rate offers and no requirement for collateral, using a business credit card as a source of easy funding may seem like a solid solution.

Although this can be a somewhat fast (~20 days) and easy option, you should know that it comes at a cost of high-interest rates and uncertainty about your monthly payment. According to entrepreneur.com, once that introductory period expires you can typically expect a much higher interest rate than with other types of funding.

A major benefit to this option is you gain fast access to the money as you need it, however, it pseudo-restricts your use of capital. If you access actual cash through the card, your interest rate will be even higher than if you charge items or services.

You will also be charged a service fee for each cash advancement. Basically, what looks like an easy option may actually cost you much more than you might think.

Other drawbacks of business credit cards:

  • It is easy to overextend and end up with a larger monthly minimum payment than anticipated. If you fall behind on your payments, it can negatively impact your credit score.
  • With a credit card there is no separation from your personal and business finances.
  • Credit cards have lower limits than a typical small business loan or a merchant cash advance, so the financing may be inadequate for your needs.

Merchant Cash Advances For Small Businesses

A solid alternative you should consider is a cash advance, which not actually a “loan” at all. Instead, it’s an advance in return for a percentage of your future business sales.

This easy small business funding is called a Merchant Cash Advance and alternative financing solutions like this are used by nearly two-thirds of all small business owners today, according to entrepreneur.com.

For many small business owners, the speed, availability, and flexibility of this type of funding provide the financial infusion that best accommodates their immediate needs, without compromising their long-term success.

Benefits of a merchant cash advance :

  •  The money is paid back based upon a small, set percentage of your business’s daily credit card processing receipts. So, there are no fixed monthly payments and it is based on the sales volume of your business as it ebbs and flows.
  • They are unsecured cash advancements, so no collateral is required.
  • A merchant cash advance is based on your volume of sales and the health of the business as a whole. Your credit score is not required.
  • The decision for your merchant cash advance is typically made within a business day and your money can be in hand within 48 hours.

If you need immediate financing for your business, fill out our pre-qualification request form. It’s free and easy and won’t hurt your credit.