Many small businesses are struggling right now due to the economy right now. If you are one of those small businesses, know that you are not alone. Also know that there is help out there available for you. Some lending has been halted due to the current economic climate. With that being said, private financing is what you should be looking into.
The main difference with a private small business loan and other loans is that they are not backed by the government, Small Business Administration, or a bank. You also have the opportunity to use the loan money on what your business needs – whether it is working capital, payroll, equipment, etc. Other loans may be more stringent on what you can use the loan funds for.
You also have the option of obtaining a line of credit for your business. Your line of credit might be rather large but you will only have to pay interest on what you actually use. Lines of credit are very flexible – as far as when they need to be paid back and what they can be used for. Keep in mind that not everyone likes this option as the rates might be high. There also might be a minimum amount that you have to get a line of credit on. This is very similar to using a credit card.
Another option is a business cash advance. This option encompasses a purchase and sale transaction. The business will sell a certain amount of its future credit card. Payments are made based on the business’ credit card sales. This option is very flexible as there are no set terms.
There are even more options available. If you have any questions, we would be happy to talk them through with you. No matter which option you choose, be sure you are comfortable with all of the terms and stipulations involved.