SBA loans are not the only game in town; there are someoptions to such loans that lots of small business owners may not know about. When you break itdown, an SBA loan continues to be just a bank loan and it’ll comedown to a number of the same components and components which arerequired for banks and other lending institutions to loan you the cash should youtreat it as such.
An SBA loan maynot be best for you, if you’re unwilling to fill out mountains of paperwork or putdown a personal guarantee. Also, in case you need cash right away, an SBA loan might not be acceptable. In this case,invoice factoring might be best for you.
Invoice factoring? Invoice factoring is the perfect way to get capital right away in the event you have a need for access to it. It’s really just an exchange of cash for anasset. A supplier can have the money in your hands in less than 2 days andusually receives repayment through a fixed percent from your daily receipts.
Another means to get the equipment and supplies you need is through an equipment leasing program. With this software, you skip to the component where the equipment is deliveredto your business and avoid the banks and the loan period. With equipment leasing, you not only have access to the bestgear when you really need it, but you can get some acceptable monthly obligations andthe equipment for hardly any cash down. Equipment leasing is becoming more popular with many of the small businesses of today and is one of thebetter choices to an SBA loan. Withequipment leasing you get new equipment, low monthly payments and less hassles than you would ordinarily get with the loanprocess.
There’s another alternative to SBA loans that’squickly becoming a popular competition; it’s called the workingcapital loan and it is a loan based on your company’s gross sales.Rather than relying on a credit file, the lenders look at your capacity to make the monthlypayments for the loan. This loan is especially great for new and smallbusinesses that don’t have much in the way of a credit historybut need backing to take their business to the next level andstay competitive. Aworking capital loan is a much simpler choice to an SBA loan and thishas many small businesses choosing it over SBA loans.
The SBA loan program is a good opportunity for little businesses but there are alternatives and there issomething available to suit every company’ needs. Finding one that’s right foryou is easy and could save you lots of time and hassle in the future.