is one of the most preferred options for many merchants who are looking to expend, renovate, or sustain their businesses. The increasing demand for small business financing is a good sign for overall small business growth in the United States. There are many business funding options for business owners. The funding is available based on various factors such as merchant's monthly revenues, credit score, time in business, etc. Some of the available financing options are Merchant Cash Advance (MCA), Traditional Business Term Loan, Short-Term Loan, Account Receivable Financing, and Business Line of Credit.
Short-Term Business Loan
This type of financing is for existing small businesses that have temporary cash flow gaps. The Short-Term Loan matures within a for Short-Term Business Loans.
- Loan Amount $5000 to $200000
- Funding Term Up to 1 year
- Interest Rates 10% to 45%
- Funding may be obtained within 10 business days.
Merchant Cash Advance
It is probably the most expensive short-term financing option with fees and charges determined by factor rates. Please note that Cash Advance is mainly for small businesses which are looking for fast funding solutions. Usually, this type of financing is obtained to purchase additional equipment, pay current bills and other financial liabilities. It also may be used for expanding the business, if there is a well-thought strategic plan. Merchant Cash Advance is provided for a very short period towards merchant's future earnings. One of the main reasons many business owners choose this type of financing is that they are not required to have high personal or business credit score. The funding is provided based on business owners ability to generate revenue. Here are the most important points we chose to emphasize some of MCA features.
- Funding Amount $5000 to $200000
- Funding Term Up to 4-5 months
- Factor Rates 1.14 to 1.48
- Funding may be obtained within a few business days.
Account Receivable Financing
This financing option is provided towards current assets in the form of account receivables. There are times when a business has too many account receivables and not enough cash to take care of pressing issues. Lenders provide necessary financing, and a merchant pays back after account receivables are collected. It is important to mention that some account receivables funding may be obtained at lower interest rates since there are much fewer risks involved in the process. The main disadvantage is that lenders most likely will look through your client's finances which in turn may affect your business relationships with them. Please look at some cover points on Account Receivable Financing.
- Funding Amount Up to 80-85% of Account Receivable
- Funding Term Up to 90-160 days
- Interest Rates. 5% to 12%
- Funding may be obtained within a few business days
Business Line of Credit
Similar to the personal line of credit (credit cards) business line of credit is offered to merchants who are looking for available funds. The main advantage of this financing option is that funding is available for merchants before there is an actual need. Please remember that you are going to pay back only the amount you use for your business. Typically, to qualify for a business line of credit, merchants need to good financial standings. The following information covers important points about Business Line of Credit Funding.
- Funding Amount Up to $2 million
- Loan Term Up to 15-25 years
- Interest Rates 4% to 21%
- Funding may be obtained within 2-3 weeks
Traditional Business Term Funding
The traditional business term financing is offered to companies with robust and stable financial positions. It has the most predictable financing conditions and also lower interest rates. The funding can be used for purchasing business properties, expanding, and strategic development. The main disadvantage in choosing this type of financing is that it is usually harder to qualify for it. Lenders offer it to well-established and sustainable businesses. Please review the most important points about traditional term loans.
- Funding Amount Up to $800K
- Funding Term Up to 5-7 years
- Interest Rates 5% to 25%
- Loan may be obtained within 7-14 business days.
FAQ About Business Loans
Please note that the minimum requirements to qualify for a business loan with our lending partners are:
• Your business must have $5000 and up in monthly revenue.
• Your business must be existing for at least 1 year.
NEED MONEY TO START UP YOUR BUSINESS? Get a PERSONAL LOAN
• Business financing
• Short-Term Business Loan
• Merchant Cash Advance
• Account Receivable Financing
• Business Line of Credit
• Traditional Business Term Funding
APPLY HERE !
GET FUNDS UP TO $350k AND MORE
QUICKLY AND EASILY
There are different Business Loan options available:
About Business Loans