Simple Ways to Get Financing for Your Small Business
When you need some extra operating capital for your business, you usually don’t want to waste time going through an extensive application process only to be rejected. You might apply to the Small Business Administration for a loan that’s more likely to be approved, but it takes time for this capital to come through. While you’re waiting for your SBA loans, you might look into these five simple financing options to get the capital you require when you need it most.
One quick way to find a loan is to take advantage of Financial Technology, or FinTech. These kinds of loans are often available exclusively online and require a simple online application and a quick review of some uploaded documents.
Express SBA Loans
Within the SBA, there are many sorts of loans. Larger loans through the SBA can take several weeks, if not more, to be approved, but smaller loans can fit into the SBA 7(a) and 504 programs, which allow them to be processed much faster, often in about a week. Since SBA loans are backed by a default-repayment guarantee by the SBA, these loans can be approved much more quickly than traditional loans.
Business Cash Advance
Cash advancement is similar to a loan, but instead of the bank lending the money to you with a payment plan, you sell the lender a portion of your future bank account receivables. By submitting documentation that indicates what payments you are expecting in the future, the bank sets up an automatic payment system to withdraw funding from your business account each day in order to pay back the loan.
Merchant Cash Advance
Similar to a business cash advance, a merchant cash advance involves selling future receivables to a lending company. In a merchant cash advance, however, the funding is automatically taken as a percentage of the day’s sales.
Another easy way to collect some working capital is by selling some of your unpaid invoices to a lending company. If someone owes you money, you can pay a fee to have the funding forwarded to you by the lending company and send the invoice payment to the lending company when it comes in.
Running a business can be tough, especially when you’re short on cash. Since business can fluctuate, it’s reassuring to know that you can get capital to help you through quieter seasons. Large amounts of funding will probably still require more complicated loans, but cash advancement or SBA loans can help you through a tight spot.