5 Ways Entrepreneurs can Finance Their Small Business Firms
Forming a business may be easy, but running it successfully is another ball game. In order to grow your business, you need to secure a stable source of finance. During the initial years, the business is not able to generate enough revenues to cover its operational cost. You have to resort to loans to finance its operation.
Are you looking for suitable finance options to fund your business?
If so, you are in for a treat, as here we will unveil five different financial options that you can avail to ensure financial stability of your small or startup business.
1. Merchant Cash Advance Program
Merchant cash advance program is an alternative loan financing option for small business owners. The cash advance program is free from collateral requirements and strict repayment schedules.
Obtaining cash advance allows you to improve your cash flow position. You can use the cash advance to pay for important expenses that you are not able to pay due to unavailability of funds. The benefit of this program is that there are no late payment fees. You can repay the loan when your business is able to generate sufficient revenues.
2. Business Loan Program
Business loan program is tailor made for convenience of small business owners. Unlike a traditional loan, a business loan program accounts for specialized needs of the business. You will have to face minimum documentation requirements and waiting time to get approval for the loan. In addition, the loan program doesn’t require collateral as is the case with traditional loan.
The approval process is also quick and you can qualify for the program in just two days. Some other value added benefits for small business loans include flexible repayment options linked to your Visa / Master card receipt, automated repayment schedule to ease cash flow, and no constraint on usage of loan amount.
3. Working Capital Line of Credit
Working capital line of credit is ideal for paying essential expenses of the business. It ensures business solvency during periods of severe financial difficulty. Small business and startup firms can especially benefit from the program in covering up their operational costs.
In addition, firms can use the working capital line of credit to pay for expenses during off seasons when the consumer demand is low. They can repay the loan when the consumer demand goes up and its revenue increases as a result. As in business loan program there is no constraint on usage of the fund. Moreover, you don’t have to pay any amount on the unutilized portion of the loan.
4. AA Credit Program
An AA credit program allows small business owners to access funds at the most competitive factor rates and extended payment terms. A fico score of over 640 will qualify for 12 months advance loan. Rates on the loan start at just 1.25% which is the most affordable loan for small business concerns.
5. AAA Credit Program
An AAA credit program is similar to AA program mentioned above but it is designed for larger advances. You can qualify for the AAA credit program if:
• the business is in operations for over two years, and
• the average daily bank balance is $1,000 with no overdrafts or ACH (Automated Clearing House) reject
Rates on the AAA credit program starts at just 1.15% that is even lower than that offered on AA credit loan program.
Do you want to know more about the above programs? You are welcome to leave a query in the comment box below or contact our experts!