There are a wide range of financial solutions available to small business owners. However, the variety of options can make it difficult to decide which product is right for you.
Below are some ways you can access finance to start a new enterprise, keep your existing business operational or for the growth and expansion of your current operations.
1. Start-up Loans And Lines Of Credit
Every business needs capital to begin operating. Funds are needed to rent premises, buy property, purchase inventory and get the necessary equipment. A start-up business loan is ideal for getting your new enterprise off the ground.
A start-up business line of credit (LOC) is also recommended. This gives you additional funds that you can access as and when you may need them. It works just like a credit card but comes with a lower interest rate and provides you with the ongoing funds that you need to establish your business.
2. Business Cash Advance
Cash advance loans are short-term finance options that provide you with the funds you need right now. Advance loans are typically secured by the surety of future income. For example, if you have a project that will pay out in 3 months but you need funds to buy materials right now, a cash advance will provide while allowing you to repay the loan when you receive payment.
3. Equipment Loans
Equipment loans provide you with the ability to purchase the items you need to get your small business up and running. The equipment that you are purchasing stands as collateral or security for the loan. If your small enterprise is unable to make the repayments on the loan, the equipment itself will cover the cost and leave you free and clear of the debt.
4. Collateralized Loans
Collateralized loans take any type of asset of value as security for the loan to be approved. A property, vehicle, equipment or even inventory can stand as collateral for these type of loans. The loans are commonly short-term and in small amounts so are ideal for providing for the urgent purchase of equipment or goods for your business.
5. Working Capital Loans
Businesses that are dependent on seasonal trade or operations can benefit from a working capital loan. These loans are aimed at covering day-to-day businesses expenses such as rent, wages, salaries, utilities and even the purchase of inventory. If your business relies on cyclical income, a working capital loan can see you through the slow months so that your business is allowed to grow and expand in the future.
What Type Of Small Business Funding Is Best Suited For My Business?
Bursoft.com offers a wide range of financial solutions to meet the start-up or ongoing funding needs of small businesses and will assist you in finding a suitable product.
