SBA loans aren’t the single game in town; there are a handful ofalternatives to such loans that lots of small business owners might not realize about. When you break itdown, an SBA loan remains just a bank loan and it’ll still comedown to a lot of the same factors and components that areneeded for banks and other lending institutions to loan you the cash when youhandle it as such.
An SBA loan may wellnot be right for you, if you’re unwilling to fill out mountains of paperwork or putdown a personal guarantee. Additionally, should you need cash right away, an SBA loan might not be appropriate. In this instance,invoice factoring may be best for you.
Invoice factoring? If you need access to capitalimmediately, invoice factoring is the best method to getit. It’s really only an exchange of money for anasset. A provider generally receives repayment through a fixed percent from your daily receipts and canpossess the money in your hands in less than 2 days.
Another means to get materials and theequipment you need is via an equipment leasing program. With this particular program, you avoid the banks along with theloan period and jump right to the part where the equipment is delivered toyour business. With equipment leasing, you not only have access to the bestequipment when you require it, but you can get some decent monthly obligations andthe gear for almost no money down. Equipment leasing is among the better alternatives to an SBA loan and isgetting more popular with many of today’s small businesses. Withequipment leasing you get low monthlypremiums, new gear and less hassles than you’d generally get together with the loanprocess.
Working Capital LoansThere’s another choice to SBA loans that’srapidly becoming a favorite competitor; it’s a loanbased in your company’s gross sales and it is called the working capital loan.Rather than relying on a credit file, the lenders look at your ability to make the monthlypayments for the loan. This loan is especially good for new and smallbusinesses that don’t have much in the way of a credit historybut need backing to take their business to the next grade andstay competitive. Aworking capital loan is a much easier alternative to an SBA loan and thishas many small businesses selecting it over SBA loans.
The SBA loan program is a great opportunity for small businesses however there are choices and there issomething available to suit every company’ needs. Finding one that’s right foryou is easy and could help save you lots of time and hassle in the future.