Startup Tuesday: Infographic: Business Financing Options to Fit Your Needs
Posted by Guest Author on May 7, 2013 in Business Financing, Business Start Up Advice [ 2 Comments ]
Although many seem to be optimistic about the future, the fact remains that traditional lenders, like banks and credit unions, are hesitant to approve business loans in what they consider to be high-risk circumstances and industries.
So does this mean that business owners should just sit idly by, waiting for the economy to turn around? Absolutely not! More than 80 percent of small businesses use some sort of financing to grow their business, but 61 percent of small business bank loan applications were rejected last year alone. It’s important for business owners to know that there are alternatives to business loans from the bank that are able to meet their needs.
Alternative Financing Solutions
Regardless of whether a business has been denied a loan from the bank or if they simply need access to working capital faster than a bank would allow, alternative financing solutions are quickly becoming the funding source of choice for many business owners across the country.
- At times, small business owners are confronted with time-sensitive opportunities that require a fast decision and quick access to financing. Not only can an alternative lender give a small business access to capital much quicker, they also do not rely heavily on credit scores. While credit history is considered, it is not a deciding factor in approval.
A small business may require working capital for any number of reasons, from remodeling a storefront and purchasing inventory to upgrading equipment and advertising. Regardless of the need, there are business financing options available.
- Even in the best of times, it was difficult for a small business to get a bank loan. According to SmallBizTrends.com, even though the rate of decline in small business loans accelerated during the financial crisis in 2008 and 2009, the decline had started much earlier than 2007. Many companies have had to resort to any combination of ways to secure financing, including tapping into their personal savings, credit cards and other types of less-traditional lending.
So what are your options for business financing?
The following infographic discusses the differences between two popular financing options, short-term business loans and merchant cash advances, and how to determine which option best fits your business needs.
No matter what your needs are, there may be an alternative financial solution for your business. Through small business loans and merchant cash advances, companies of all types, including restaurants, retail stores, spas, salons and auto repair shops, can have quick access to working capital with a choice of flexible or fixed repayment options. If a small business requires more cash before they have paid off their original amount, they may even qualify for additional funding.
Bio: Christina Memorio is an SEO Specialist at Business Financial Services, Inc. Her content covers a variety of topics relevant to small business owners, from financial advice and alternative funding solutions to social media and content marketing practices for SMBs. In her spare time, Christina loves to cook and is a die-hard fan of the Florida Gators. Check out the BFS blog here. Connect with Christina on Google+!