Small Business Loans: Your Guide To Success
Starting up a small business is both an exciting and scary time. With all of your ideas and dreams finally coming to life, the last thing you want is for something like finance to let you down at the last minute.
Procuring a small business loan from an experienced, trusted provider can be an ideal way to inject capital into your business, and help take your concept from scribbled notes to a fully functioning reality. It is also a perfect way to expand and grow your business once you have made a start, taking your idea to the next level.
Considerations When Looking for a Small Business Loan:
There is a range of factors to consider when taking out a small business loan. These include:
- The amount you will need to borrow
- The cost of repayments
- Your credit scores
- Estimated projected profit for the business
- Tax and savings schemes
It can all be overwhelming, especially for a first-time business owner. The complex process and seemingly endless requirements may put some people off. Luckily, there is another option which cuts through the fuss and stress and helps you to secure your funding in no time—alternative financing.
What Is Alternative Financing?
Alternative financing is often provided by capital companies which provide quick and easy access to capital for small business. Loans frequently range from $5,000 to $250,000 making them suitable for most businesses.
This service provides a non-bank alternative to financing programs. It is estimated that small companies in the US employ almost half the workforce in the country, and so it makes financial sense for capital companies to invest in these businesses and help them to grow.
Alternative financing takes a different approach to small business loans than that typically offered by banks. The underwriters look at factors such as business stability and potential, as opposed to merely analyzing credit scores. Physical assets are also not required, though those businesses who are looking for a cheaper rate or lack a strong cash flow do have the option to ask about assets backed funding or collateral.
Providing your business has been trading for at least six months and has a steady cash flow, you are likely to be approved for alternative financing. Even better, many of these loan companies provide the initial capital, as well as additional funding as your business continues to grow. You should have apps to track money as your business grows.
How Do They Work?
Alternatively financed small business loans are easy to apply for—most with an easy online application which requires very little documentation. The Automated Clearing House (ACH) helps you to keep on top of payments. These will be automatically collected daily or weekly from your bank account. Most loan term lengths range from 3-12 months.
You will only need three months worth of bank statements, saving you time looking for tax returns and complex financial details. This streamlines the process and makes it simpler and easier to obtain your credit.
For an easy, hassle-free source of capital to boost your business, a non-traditional small business loan is the way to go.