Business Finance Options

There is a plethora of business financing options that can significantly help your business. Knowing which option or combination of options is best suited for your small business, is vital.

SBA Loans

The Small Business Administration will guarantee 50 to 85 percent of loans up to $2 million, provided by banks. To apply for an SBA loan, you will need to present your business profile, a loan request, business financial statements and personal financial statements. You may also need to provide collateral and have an above average credit score to be approved for an SBA loan.

Business Line of Credit

A business line of credit allows you to get a credit card to use for your small business. Typically, these cards offer credit between $10,000 and $100,000. The credit cards can be used to make any business purchases and you must make at least the minimum payment every month. You are free to use as much of the remaining balance as you wish, but typically, the more you spend, the higher your monthly minimum payment will be.

Credit Card Sales Advance

The credit card sales advance allows you to optimize your business’s future credit card sales. Depending on the amount of monthly credit card sales that your business processes, you can receive $5,000 to $500,000. The advances are completely unsecured and they can be renewed every three to four months. Also, there are no restrictions on how you can use your credit card sales advance.

Equipment Leasing

Instead of searching for a loan to be used to purchase equipment, you may consider equipment leasing. Instead of paying the full amount up front, you get the equipment you need and make small monthly payments. Some companies will give you the option to purchase and keep the equipment, once the lease is up.

ARC Loan

America’s Recovery Capital Loan is a new type of loan offered by the SBA. These loans of up to $35,000, can be used by small business owners who have been in business for at least two years. The funds must be used to pay off existing debt.