Whether your business is just getting started, needs capital to address an emergency, or you’re looking to grow your business to the next level, financing is a critical part of the process. Nearly all business owners will need to explore financing options at some point, so let’s take a look at what’s available!
Business Line of Credit
A business line of credit allows business owners to operate with extreme flexibility, only paying interest only on the funds they withdraw. Whether you’re using that funding to buy equipment, hire staff, expand to a second location, this option allows you to spend as you see fit. And with a 73% approval rate, most businesses qualify for a business line of credit through Proto Financial. And because a line of credit is revolving, you can use it as many times as you want. As soon as you repay what you’ve used, those funds become available to you again.
This can be the most effective option when treated as a security blanket to address short-term or unexpected needs as when you’re not using the credit, you aren’t obligated to pay interest.
Click here to learn more about financing with a business line of credit!
Business Credit Cards
Business credit cards operate similarly to business lines of credit, allowing extreme flexibility and only charging interest for cash that businesses withdraw. Having a physical card allows business owners to track expenses, build better credit, and increase cash flow to invest in your business with just a swipe.
To learn more about business credit cards, click here.
Term Loans & SBA Loans
Term loans provide businesses with a lump sum that can be repaid over time on a fixed schedule. These loans can be great for funding one-time investments that will pay off in the long term like business expansion decisions or equipment. There is still some flexibility as interest rates can be either fixed or variable.
With SBA loans, like the SBA 7A option provided by Proto Financial, there is the additional benefit of the loan being backed by the government. For qualifying businesses, this provides financial perks like:
- Highly competitive, low-interest rates
- Longer loan terms, up to 25 years
- Fixed and variable-rate options
- Many businesses are eligible to qualify
- Low down payments around 10-20%
- Borrowers don’t need to worry about balloon payments
- Other advantages include monthly payments, fixed interest rates, special-case principal amount forgiveness, and long repayment terms.
To learn more about SBA 7A term loans, click here!
Merchant Cash Advance
Merchant Cash Advance allows you to leverage future income for liquid capital you can use in the present. This can be an excellent solution for businesses that may have bad credit or that may not have established high credit scores just yet. At 85%, the approval rate for merchant cash advances is the highest of all types of small business funding. That’s because qualifications rely on criteria such as business performance, not credit scores and financial debt, letting you say goodbye to mountains of paperwork and gratuitous credit pulls. Click here to learn more about this option.
As the name implies, equipment financing pertains directly to equipment costs! Dealing with broken or faulty equipment is not an enviable part of owning a business. Unfortunately, most companies can’t afford the hefty price tag attached to the proper tools they need to power daily operations. Equipment financing solves this problem by providing your business with the extra capital you need to get your hands on some of the most advanced, innovative technology hitting today’s market. You can learn more about equipment financing here!