How Can I Find Funding For Small Businesses?

Small businesses are the backbone of the U.S. economy, but it can often be difficult to get funding. Small businesses are less likely to find funding from lenders, so you need to be creative. This article is going to go over some of the many ways that you can pursue funding for small businesses.

Traditional Lending Options

First of all, most small business funding most often comes from common sources.  These are more viable if your business has been built up, so be mindful of the state of your business if you pursue this path.

If you choose to get bank loans, you certainly won’t be alone in your reasoning, as these are the most popular option. Take a note that receiving a bank loan is becoming more difficult in the modern market. Strong collateral and good credit can help secure a traditional bank loan.

Small Business Association(SBA) loans are often designed for the needs a small business funding. The only issue is that these resources are finite, and there is often heavy competition for these funds. Make sure that your books are well prepared if you want to throw your hat in this ring.

Microloans are probably the easiest of these three funding options to get as far as qualification goes. However, these also have the lowest ceiling as far as money goes, and carry short repayment periods and high-interest rates.

Self/Private Funding

These sources of funding for small businesses can be very useful but generally are only available in certain circumstances. In general, these are viable but not sustainable.

Sometimes, support begins at home with family and friends. If your loved ones believe in your business, they can be financial backers. Many looking for funding for small businesses use this as a start. However, it is best to draw up some sort of agreement to make sure the level of their support is clear.

If you have good personal credit (around a score of 700) this could be an option for you, you may qualify for a business line of credit, a versatile way to clear up your funding issues. Granted, many business owners looking for funding may have some credit trouble, striking this as an option.

If you are in dire straits or have some assets you no longer way, selling them off or using your savings can provide quick cash. Just make sure you don’t risk too much to get your business up and running. Many experts will recommend using this as a primary source of funding for small businesses. Not only do you incur personal financial harm, but this method can only really be used once.

Alternative Funding

These off-beat sources are becoming more popular as funding for small businesses becomes harder to find. Here are some of the many options.

One growing lending method in the financial market is crowdfunding. Crowdfunding websites allow you to create a personal web page. These pages explain the goal funding will help achieve. Of course, catching success in this way is a bit like catching lightning in a bottle. While there are many wild crowdfunding success stories out there, there are far more that fall short

Small businesses and nonprofits may be willing to work with you with a local agreement of sorts. These can help increase patronage of your business, in turn generating extra cash flow. This is especially applicable to businesses selling goods. While these relationships are valuable, they can take a great deal of time to pay off, if they do at all. In addition, they won’t replace options like loans, where you get a certain amount of money at a certain time.

Other alternatives are growing more popular but have a bit more stability than the ones we just mentioned. One good example is merchant cash advances.

Merchant Cash Advances For Small Business Funding

eBusiness Funding helps businesses that may struggle with traditional lenders. To do this, we provide merchant cash advances. These are accessible to a wider spread of businesses than bank loans or private lenders. 95% of businesses that meet our simple requirements qualify for funding. All you need is to be in business for at least six months, with over $10,000 in monthly revenue. With us, it’s not about past credit history or collateral, but about your business’s potential.

It’s important to us that you use the funds we offer in the most helpful way possible. As a result, so we place no limit on how you spend our advances. Payroll, expansion, repairs, spend on what you need! We also get you your funds fast, sometimes as soon as 72 hours after you first apply. Repayment is also very simple. Rather than large monthly payments, we take a set part of your future sales. This is set up by our skilled consultants. This percentage stays the same, so if business slows down, you pay less.

Interested? All it takes to begin is filling out a simple contact form. We’ll be waiting, and are looking forward to helping your business get the funding support it needs.