Small Business Funding Options

Entrepreneurs understand that they wouldn’t be able to have high sales every day. There are days when the sales would plummet; while there are days when it can go higher than they’d expect. That being said, many business owners are equipped with the right tools in their arsenal so when these situations arise, they’re prepared.

One common trait experienced entrepreneurs have is their ability to find solutions to the problems they have. The main problem of most small businesses, especially those that are just starting in the industry is funding.

New businesses that have been established can hardly earn enough to be put in the savings of the owner. Most of the time, what they earn is not enough for them to fund everything in the business like the payroll of their employees, company bills, and other debts and obligations.

That’s why there are tons of small business financing options entrepreneurs have whenever they feel like they’ll be cash-strapped within the next few weeks or so.

How Businesses Can Acquire Funds

In the world of business and investments, it’s normal to be budget-crunched, in fact, new business owners experience this more often than them being joyful because of their profit. The acquisition of funds for a business is a fundamental part of growing.

All businesses need funds – and they wouldn’t be able to raise those funds alone. So how can these ventures get the funds they need? What small business funding choices are there?

There are quite a few loans that help entrepreneurs get over their financial dilemma and these options are:

• Secured Business Loans
• Merchant Cash Advances (MCAs)
• Secured Lines of Credit
• Working Capital Loans

Secured Business Loans

This is one of the most common types of loans and it’s often used when a business is looking to purchase something big.

A secured business loan is when the borrower would pledge a security through the form of a collateral for him or her to get the funds they need. Most usually, the collateral would be the asset they’re looking to purchase.

Merchant Cash Advances (MCAs)

An MCA is the type of funding where the borrower would sell his future sales to a lender in exchange of a lump sum amount. The lender would then take future sales which are more usually through the form of credit card payments.

Secured Lines of Credit

A line of credit is the type of loan that is revolving – yes, just like a credit card. This type of loan is when a lender provides a borrower with a pool of funds. From that pool of funds, the borrower could draw or take out whatever amount he or she needs as long as it’s within the limit the lender has provided.

Working Capital Loans

Last but definitely not the least, a working or business capital loan is the type of loan provided to a business that will be used for the daily operations of the business. It can be used to purchase certain materials, products, and pay people for services.

These are the small business financing choices that entrepreneurs can have. Usually, all financial institutions are capable of offering this so you can try it with banks, credit unions, the Small Business Administration (SBA), and business funding and lending companies.

If you need the funds fast, then you can’t rely on most of them except for lending companies. Banks, credit unions, and even the SBA release funds 3 to 4 months even after the application is approved. We here at SoFlo Funding is the company you would want to work with if you need funds fast and if there’s something important you need to use it for.

We provide all the options given above for small business financing and we can help not only well-established businesses, but also startups, new ventures, and even entrepreneurs just entering the scene.