As a business owner, you’re no longer dependent on the bank down the street for a loan. Now the question is: “How do I get a business loan with an alternative lender?” Explore your options for alternative/online lenders, including those that are peer-to-peer and crowdfunding. By doing so, you are less likely to waste time with a potential lender that doesn’t meet your business’ needs.
Given their financial technology (fintech) capabilities, going through online lenders is often the fastest and easiest way to get guaranteed payday loans Youngstown a business loan. They can deliver both a quick response and rapid funding to your bank account. With crowdfunding, you will likely have to sacrifice equity in your business. P2P lending, meanwhile, is an efficient way to get cash quickly and repay the loan over time with interest.
Not all lenders are the same, even if they are grouped in the same category. Be sure and read the fine print and compare the rates and fees of the lenders before it’s too late.
A term loan for all purposes
One of the quickest and easiest ways to get business funding is through a term loan. There are three types of term loans based on duration: short term, intermediate-term, and long term. How do I get a business loan that’s right for me? Well, the answer to that is tied to the purpose of the loan.
Do you need to invest in more inventory? A short-term loan could be appropriate. With this option, you can redirect the sales of those products or services to repay the loan. The same goes for covering payroll or additional hiring. If you are pursuing an expansion or acquisition, however, the financial benefit takes longer to be realized. So, a medium to long-term loan that is repaid over multiple years might make more sense.
An MCA provides quick access to funding
A merchant cash advance (MCA) could be a speedy way to gain access to capital. Some MCA providers boast access to funds in as little as 24 hours after you get the green light on your application.
Keep in mind as you explore how to acquire a small business loan that an MCA is not a loan. Instead, it’s a cash advance based on the cash flow of your business. Providers weigh a host of criteria, often based on an algorithm that will generally include daily credit card transactions/sales to determine whether a business is a good credit risk. Usually, you will repay the loan within a number of months, and repayments are generally taken directly from your sales.
Should I get an SBA loan for my business?
SBA loans are facilitated through lenders and are backed by the government’s Small Business Administration. A critical risk in relying on an SBA loan is being subject to the whims of the U.S. government. For instance, in early 2019, during a government shutdown, approved borrowers of SBA loans were left in limbo as policymakers hashed things out while business expansion plans were forced to be placed on hold. Business owners who were planning on refinancing or replacing shoddy carpets had to resort to Plan B as a result of the sudden uncertainty tied to SBA loans.
If you don’t have time for an SBA or don’t want to shoulder the risks, lenders such as Funding Circle have you covered. At Funding Circle, business owners have accessed a total of more than $10 billion in loans globally. It’s important not to have to compromise on business funding features such as competitive rates. Wondering “how do I get a business loan with Funding Circle?” Just Apply Now and get a decision in as little as 24 hours.