What Type of Funding is Right for Small Businesses?

What Type of Funding is Right for Small Businesses?

  • Funding for Business Blog

What Type of Funding is Right for Small Businesses?

It is no secret that small businesses have a hard time of getting loans from banks. But fear not, there are plenty of other types of funding that can get your business what it needs. Banks do not take into effect the potential of a small business like other lenders do. They also don’t understand that when a business needs money, they need it fast. We are about to change your view on funding and open your eyes to possibilities to grow your small business!

Your Guide to Alternative Funding for Small Businesses:

Invoice Factoring- Invoice factoring is a helpful funding solution for small businesses that suffer from slow paying clients. If your company is waiting around for 30-90 days to get paid, that leaves a lot of stress on your business. Bills might pile up and leave your business at risk if a surprise expense comes a long that you can’t afford. An invoice factoring company will purchase your open invoices at a discounted rate and upfront your business the money. Once your customer finally pays, the factoring company will be reconciled. Learn More.

Purchase Order Financing- Purchase Order Financing is helpful for businesses that need funds for supplier costs. A PO financing company will upfront your supplier for your costs and then once your customer receives their final product from you, the PO financing coming will be reconciled. This allows businesses to focus on other expenses such as inventory, sales, etc. Learn More.

Merchant Cash Advance- A merchant cash advance is for helpful to B2C companies. A merchant cash advance company will advance your business a fixed amount and get reconciled through future credit card sales in increments, or through ACHs. This is for businesses who make daily sales such as a restaurant. An MCA allows businesses to order inventory, hire talent, up their marketing, etc. MCAs can also be a fast process. So your business will never have to wait around to get the funds that they need. Learn More.

Unsecured Loan- Unsecured business loans are great for companies that that can’t get approved for a bank loan because they have poor credit or no collateral. If your business needs the money to grow, but can’t live up to the bank standards, an unsecured business loan works wonders. Your business can get approved for a loan and advanced in just a few days. The unsecured loan company will get reconciled from payment from your customers, similar to invoice factoring. Learn More.

Payroll Funding- Payroll funding is pretty self-explanatory. If your business needs money to support their payroll, there are payroll funding companies that specialize in this type of funding. Some companies even off back office and payroll support for their clients. Things like payroll checks and W2s would then be distributed by the payroll funding companies and give your business a little load off of the work! This type of funding is great for staffing companies but also has its place with different industries. Learn More.

Deciding Which Option is Best

So you see, there are many different options available to small businesses other than a bank loan. These options are much faster and more reliable than the lengthy process of a bank loan. Our factoring marketplace is all about helping small businesses get the funding they need. If your business is in search for the best funding solution out there, we can help. We will listen to what you are looking for funding wise, and we will match you with one of our many funding partners. All you have to do is sit back and relax, we are taking over! You could sit there and say it’s simple, but take the next step and contact us.