Every business person wants his or her business to reach the heights like none other. One of the most critical aspects of every business is finance. Some companies start with minuscule funding; whereas, some require a good finance option to set a firm foot in the market.
With the right finance, good foresight of the business and practical way of dealing with all the obstacles one is likely to face, he or she can take their business to the highest possible level.
Getting the right option for finance means getting the correct interest rate, the proper term for the repayment, and many more. The Small Business Administration Loans, Small Business Loan, and Business Line of Credit are some of the most widely-known options. However, more opportunities will make your business funding easier, and your choices very clear.
Here are some more small business loan options.
1- Merchant Cash Advance
The Small Business Administration Loan and Small Business Loan are actual loans, and the Business Line of Credit is a like a flexible loan option in which you can use the funds and repay as per your convenience. The Merchant Cash Advance, on the other hand, is not a loan but a more straightforward finance option.
In this option, a company can sell its current and future dues from the clients to the financing company. Thus, the funding you get depends on your company’s future revenue. They are also assessed as a factor rate.
This option requires you to make daily or weekly payments via ACH or a percentage of everyday credit card sales.
The funding range is between $5000 to $300,000.
2- Commercial Real Estate Financing
This option is ideal for those who want to make an investment in commercial property. This investment in commercial property includes getting a new property either for a new business, expanding the existing one, or refinancing a previously purchased one.
It is an ideal option for you if you are buying a commercial property ranging between $ 250,000 to $75,000,000. Even if you have purchased a commercial property but are planning to refinance, you can choose this option to build equity in real estate.
Another good use of this option is that if you wish to build a new property than too you can avail yourself of the Commercial Real Estate Financing option. Thus, even if you are not able to find a suitable location for your company, you can build one with this option.
3- Accounts Receivable Financing
Factoring the invoice is another term for Accounts Receivable Financing. It gives you the means to reinvest the cash from the invoices still pending for payments.
How it works is, you will pay the outstanding invoices to a moneylender, then you will receive a fraction of the total money owed. Later, once the due are resolves by receiving payments from the customers, the moneylender will pay you the remaining amount after subtracting their fees.
It is an ideal option for those who have a need for immediate funding, and there are many outstanding invoices. Even if your business has a lot of time gap between the sales and payments, then too, this is a good option.
Therefore, you don’t have to commit to a long term loan because of this option.
It is worth your time exploring these alternative small business loan options for business loans. With these instant non-loan finance options, you can avoid committing to a long term business loan, paying high-interest rates, or saving less than you can.