Is there a perfect solution to business financing?
I am sure that most business owners out there have considered all of their options when it comes to business financing. What works for some may not be the best approach for others. Sometimes we may want one option but can only qualify for something different. The truth is; there just aren’t many options available. There may be no perfect solution, but there may be one that fits your needs much better that the others. I’ll attempt to go through the different options to see which option works best for your business. Traditional business loans from the bank Bank loans are by far the most widely used for of business financing. It is the first place most people go when they need money. The biggest advantage to this type of financing is that they offer the best rates and the longest terms (aside from borrowing from friend and family). The downside to borrowing from the bank is that it becoming more and more difficult to get approved. Banks turn down a vast majority of all of those who apply for a business loan. Other problems with this type of financing are; it could take several weeks to get funded and most banks require a considerable amount of collateral. Friends and family Friends and family is another form of business financing that many people have not given serious consideration to. Depending on what you work out; it could be less expensive than banks. A word of warning: It has been proven time and time again that borrowing money from friends and family can cause a lot of emotional stress if things don’t go as planned. It has caused many feuds and has split up many friendships. Friends and family are very important. Generally no amount of money is worth risking those relationships. If you do borrow money from them; do everything in your power to make good on your loan. Selling off a portion of your business Selling off a portion of your business is an effective way to get funding. Just be careful not to appear too desperate or you could be taken advantage of. Most people work very hard to build their business and become very attached to it. It is understandably very painful to let a portion of that business go. It is often compared to giving away an arm or leg. This is often a last resort for businesses that are in serious trouble. A business cash advance A business cash advance is a relatively new approach to business financing. They offer a very high approval rate, quick turnaround (usually 7 days or less), no collateral and an easy application process.
The only downside to this type of funding is that it cost more than a traditional business loan. What makes this type of funding unique is that regardless of your credit score; you may still be eligible for funding. A business cash advance based on the age old practice of receivables factoring. This however focuses on your credit card receivables. They purchase a portion of your future credit card sales which you in turn pay back directly through your credit card processor. The advantages to this type of funding is are; There is a 90% approval rate, so chances are you will get funded regardless of bad credit. The average amount of time it takes to get funded is less than 7 days. That is a fraction of the time it takes the bank to process your loan. A business cash advance does not require collateral of any kind. The application process is fast and easy. You can receive up to $500,000.00 depending on your business.
As you may have guessed, I am an advocate for business cash advances. I have helped hundreds of business owners get the financing they need to sustain or grow their business. For more information about a business cash advance, go to http://businesscashadvanced.net