SBA loans aren’t the single game in town; there are someoptions to these loans that many small business owners mightn’t understand about. When you break it down, an SBA loan is stilljust a bank loan and should you handle it as such, it will still come down toseveral of the same factors and components that arerequired for banks and other lending institutions to loan you the money.
An SBA loan may wellnot be best for you, if you are unwilling to complete mountains of paperwork or putdown a personal guarantee. Likewise, if you will need cash immediately, an SBA loan may well not be appropriate. In this case,invoice factoring might be best for you.
Invoice factoring? Should you need access to capitalimmediately, invoice factoring is the perfect way 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 canhave the cash in your hands in less than 2 days.
Another way to get the gear and materials you need is through an equipment leasing program. With this specific program, you bypass the banks and theloan period and jump to the part where the equipment is delivered toyour business. With equipment leasing, you not only have access to the bestgear when you need it, but you can get thegear for almost no cash down and some decentmonthly payments. Equipment leasing is among the better alternatives to an SBA loan and isgaining popularity with many of today’s small businesses. Withequipment leasing you get low monthlypremiums, new gear and less hassles than you would ordinarily get with the loanprocess.
There is another alternative to SBA loans that israpidly becoming a favorite opponent; it’s called the workingcapital loan and it is a loan on the basis of your company’s gross sales.Rather than relying on a credit file, the lenders look at your capacity to make the monthlypayments for the loan. This loan is particularly great for new and littlebusinesses that don’t have much in the way of a credit historybut still want backing to take their company to the next grade andstay competitive. Aworking capital loan is a much easier choice to an SBA loan and thishas many small businesses picking it over SBA loans.
The SBA loan program is a great chance for little businesses however there are alternatives and there’ssomething available to suit every business’ needs. Finding one that’s best foryou is easy and might save you a lot of time and hassle in the future.