Types of Business Funding
Starting a business is one of the most rewarding experiences in the world. Small business fuels the U.S.. economy and in order to keep and sustain growth, businesses must be able have access to positive cash flow. Some business owners fret at the thought of applying for a bank loan and may not understand that there are several available financing options for your business. Here are some available financing options:
SBA Loans are loans which portions of the loan are guaranteed by the SBA. Many people steer clear of SBA loans because they think they are difficult to obtain and won't qualify for the loan. Although they are not the easiest loans are harder to qualify, the correct presentation of your business plays a heavy roll in getting this type of financing. Having a competent company that have relationships with SBA lenders and can match your business with the right lender goes a long way
Business term loans are loans that allow a business to repay the loan over an extended period of time. These loans can be attractive as they allow a business to pay a set amount of several year with the assumption that the business will profit over time.
Revenue Based Loans are loans that are based on the cash flow of your business. These loans are attractive to businesses because credit plays little to no role in the amount of money your business may eligible for and generally are funded within days of approval. For these loans, the business must be generating income and have high gross margins. These loans can range from $10,000 to $2,000,000 dollars or more.
Crowdfunding is probably the best way to fund your business. You virtually let the world know about your idea for a business or idea to expand your business and people who believe in your idea or cause donate. Sites like Kickstarter and Indiegogo have skyrocketed in popularity and $6 billion dollars is expected to have been funded in 2013 alone. Anyone can put up an idea up and you generally have to offer some type of gift for the donation. Having an experience crowd funding consulting can help you achieve your business financing goals.
Financing the growth of your business is one of the most important things you can do to continually sustain long term growth of your business. In today's tough economic times, banks are very hesitant in loaning money to businesses, especially new businesses. To have better opportunities in obtaining any type of financing, it is important to have an experienced consultant that can match your needs.