As a business owner, you know that having access to capital is crucial to your success. You may also know that traditional lending institutions can be slow to approve loans and have high interest rates. Fortunately, there are a number of online tools available to help you secure the financing you need for your small business. In this blog post, we will outline some of the best small business lending tools and commercial lending options available online. We hope this information will help you get the capital you need to grow your business!
SBA 504 , 7a
SBA 504 loans are available for the purchase of fixed assets, such as real estate or equipment. SBA 7a loans can be used for a wider range of purposes, including working capital, inventory, or business acquisition. Both loan types can have a maximum term of 25 years, but SBA 504 loans may have a slightly higher interest rate. SBA 504 loans also typically require a down payment of at least 10%, while SBA 7a loans may require as little as 5%. One key difference between these loan types is that SBA 504 loans always have a fixed interest rate, while SBA 7a loans may have either a fixed or variable interest rate. SBA 504 loans also typically have stricter eligibility requirements than SBA 7a loans. For example, businesses must typically create or retain jobs in order to qualify for an SBA 504 loan. As with any loan, there are pros and cons to both SBA 7a and SBA 504 loans. Borrowers should carefully consider their options before applying for either type of loan.
Business Credit Cards
Business Credit Cards can be very useful for paying business expenses. Some Business Credit Cards offer perks such as cash back, which can be used to offset business expenses. Business Credit Cards also offer the advantage of being able to track business expenses easily. The disadvantages of Business Credit Cards include the potential for high interest rates and late fees. Business Credit Cards also have the potential to impact your personal credit score if you are not careful about making timely payments. When used wisely, Business Credit Cards can be a great tool for managing business expenses.
Invoice factoring
Invoice factoring is a type of short-term financing that allows businesses to sell their accounts receivable (invoices) to a third-party factors at a discount. In exchange for the quick infusion of cash, businesses give up a portion of the money they would have otherwise received when their customers pay the Invoices.
Invoice factoring can be a helpful tool for businesses that need working capital but don’t qualify for traditional bank loans. It’s also helpful for businesses with irregular income or those that are growing quickly and need to free up cash flow. However, Invoice factoring can be costly and it’s important to understand the fees associated with this type of financing before moving forward.
The small business lending market is growing, with new lenders and products appearing all the time. It can be difficult to know which product is right for your business or where to start looking for financing. We’ve outlined some of the most common small business lending instruments here, so you can familiarize yourself with what’s available. If you need help finding the right product or deciding which option is best for you, our team of experts are here to help. Contact us today to get started!