Wondering what options you have for funding your small business in 2020? Let’s take a look at a few of the most popular options for business loans and small business funding. Read on, and see which one may be right for your company.
Small business loans from a traditional bank are a good choice for most businesses. However, you may need to provide up to 2 years of business tax returns and provide P&L statements.
Your personal credit score may also determine whether or not you can qualify for a loan. The processing times for small business loans are also quite long compared to other methods of small business funding.
Beyond standard term loans and SBA loans, you can also qualify for business lines of credit or business credit cards at banks, which can give you some valuable flexibility when purchasing assets and making payments.
Merchant Cash Advances
MCA (merchant cash advance) is one of the most convenient funding options for small businesses with low or bad credit scores. This option allows you to get funding very quickly with flexible repayment options. It’s also a lot easier to qualify for an MCA than a business loan.
Crowdfunding with websites like Kickstarter and GoFundMe is becoming a popular way to get the cash you need to expand your business, begin manufacturing a new product, or open a new location. If you have a dedicated, loyal base of customers, you may be able to attract enough investors to get the capital you need for your business.
Small Business Grants
Small business grants are highly sought-after, because they aren’t loans at all. They typically do not need to be repaid. They are available from the federal government, as well as from state and local governments, in some cases. Often, grants prioritize minorities, such as people of color and women-owned businesses, or businesses owned by veterans or disabled individuals. We recommend exploring grants in your local area to see if you qualify for this method of business funding.
Angel investors invest in your company in exchange for a share of ownership or convertible debt. They are a great option if you are running a start-up that needs funding, and may be highly profitable in the future. You can look for angel investors in your local area, or use a website like Angel.co to look for investors both in your local area and around the country – or even the world.
Know Your Options For Business Funding!
These are just a few of the best options for funding your business. So explore each one in more detail now, and see which method may be a good option for your needs. Whether you’re hiring more staff, opening a new location, or introducing a new product, one of these small business funding options is sure to be right for you.
Interested in small business loans or a merchant cash advance? Contact us now. At Progressive Business Capital we offer such a wide network of lenders, we guarantee the best possible rate for your loan.