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Small Business Funding: 4 Options for Business Owners

small business funding 4 options for business owners

You’ve been in business for a number of years, and have experienced a steady increase in revenues each year since starting up. But an unexpected event has suddenly fallen on your lap, such as a massive order that you don’t have the inventory to complete, or a fabulous opportunity to grow your business that requires extra funding.

Whatever situation your business might be in, getting access to extra cash fast can help during these situations, and even help bail you out of a predicament.

 

Your Small Business Funding Options

Luckily, there are a few financing options available to small business owners just like you when a little help in the financing department would help a great deal. Here are a few that you might want to tap into.

 

Business Cash Advance

A business cash advance can provide you with the upfront funds you need right away in exchange for a certain percentage of your business’s future credit card sales. For example, if your business takes a $20,000 business cash advance, the first month’s repayment could be 10% of your sales. During the first month, if your business brings in $40,000 in sales, then $4,000 would automatically be deducted through the credit card transaction process. If sales are lower one month, the deducted amount would be less. On the flip side, higher sales would mean a higher amount would be deducted.

If your sales are steady, but you need some cash to cover immediate costs, a business cash advance can be a workable option to get your hands on this much-needed money. Whether you need some cash to tie you over until your customer credit card payments come through, or you want to jump on an unexpected opportunity, a business cash advance can be the ticket.

 

Merchant Line of Credit

This type of funding option allows you to gain access to a certain amount of cash that’s deposited into your business account on an as-needed basis. Only the amount that is withdrawn from the account is charged interest. For instance, you might be approved for a $25,000 business line of credit, but if you only take out $5,000, you are only charged interest on that amount withdrawn, rather than the total amount.

A merchant line of credit is extremely helpful to have on the back burner, ready to access should the need arise. You can then tap into it to cover operating costs and feed your working capital. With this financing option, you aren’t given one large lump sum of cash the way a traditional loan does. Similar to the way a credit card works, you withdraw from the credit when you need to pay for something that you can’t afford, and repay the amount in full or over time, depending on what you’re comfortable with.

 

Short-Term Financing

For many small businesses, a short-term loan can be the way to go. This small business funding option can provide you the cash you need fast, many times in as few as 48 hours. With an increase in alternative lending choices available now more than ever, it’s so much easier for small business owners to avoid the strict loan requirements that traditional banks expect.

Alternative lending options, such as short-term working capital loans, offer the quick turnaround and flexibility needed for you to keep your company operating smoothly. Short-term business loans are a simpler way for you to get liquid cash and tackle financial setbacks as they arise.

 

SBA Loans

The US Small Business Administration (SBA) is another source you might want to look at for a business loan. This organization offers a number of loan programs that are designed specifically for small businesses, and work with lenders that have their own particular lending requirements. Repayment of an SBA loan will depend on all sort of factors, such as the amount being loaned out, how the funds will be used, and what your specific needs are.

These loans can be used to buy equipment, add inventory, purchase furniture and supplies, and more. The SBA requires that you meet certain training and planning requirements before an SBA loan application is approved. The reason for this stipulation is to help you successfully launch or expand your business.

 

Credibly.com – Fast, Easy and Flexible Financing Solutions for Your Business

At Credibly.com, we can provide you with a fast, professional alternative to the traditional small business loan. We specialize in helping small business owners just like you get the capital you need to cover all the costs associated with running your business, including expansion, inventory, training, new hires, upgrades, and cash flow.

No minimum credit score is required, and your application can be approved in as little as 48 hours!

Credibly.com. The quick, easy alternative for small business loans.

It’s FREE to apply. Get started now!