SBA loans are not the single game in town; there are a handful ofalternatives to these loans that many small business owners mightn’t understand about. When you break it down, an SBA loan continues to bejust a bank loan and when you handle it as such, it will still come down toa number of the same factors and components which aredemanded for banks and other lending institutions to loan you the cash.
An SBA loan might not be best for you if you’re unwilling tocomplete mountains of paperwork or put down a personal guarantee. Also, in case you will 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 best way to get capital right away should you have a need for access to it. It is really just an exchange of cash for anasset. A provider usually receives repayment through a fixed percentage from your daily receipts and canpossess the cash in your hands in less than 2 days.
Another way to get supplies and theequipment you need is through an equipment leasing program. With this specific program, you skip to the component where the equipment is deliveredto your business and avoid the banks and also the loan stage. With equipment leasing, you not only have access to the bestequipment when you need it, however you can get theequipment for very little cash down and some reasonablemonthly premiums. Equipment leasing is gaining popularity 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 premiums and less hassles than you’d usually get together with the loanprocedure.
Working Capital LoansThere’s an alternative alternative to SBA loans that isfast becoming a favorite challenger; it’s called the working capital loan and it’s a loan on the basis of the gross sales of yourbusiness.Instead of relying on a credit file, the lenders look at your ability to make the monthlypayments for the loan. This loan is particularly great for small businesses that don’t have much in the way of a credit historybut want capital to take their company to the next level andremain competitive. Aworking capital loan is a simpler choice to an SBA loan and thishas many small businesses choosing it over SBA loans.
The SBA loan program is a good chance for little businesses but there are options and there’ssomething available to satisfy every business’ needs. Finding one that is right foryou is easy and might help save you a lot of time and hassle in the future.