When The Bank Says No: Innovative Working Capital Loans - Flexible Business Funding
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When The Bank Says No: Innovative Working Capital Loans

Posted on: May 11, 2016 | Category: US Business Funding

It all comes down to circumstances, doesn’t it? Many owners of small and medium-sized businesses have found themselves in unenviable circumstances, forced to make difficult and important decisions about where their working capital will come from.

Whether you want to fund an expansion, purchase some much-needed advertising or simply pay your payroll and other day-to-day operating expenses, innovative working capital loans are available from US Business Funding that can help you get the money you need.

The Traditional Choices

Small businesses in the United States that need money can always try to get a loan through a major bank that’s guaranteed through the Small Business Administration. These loans have great rates and terms, but SBA loans aren’t easy to get and aren’t quick solutions. It can take three months or more to get your SBA loan underwritten and granted, and approvals are less frequent in today’s highly restricted credit environment. Only the most creditworthy businesses should bother to apply.

When an SBA loan isn’t available to you, a secured loan using some of your assets as collateral may be available. You can put up your computers, office furniture or industrial equipment against the loan. Your creditworthiness doesn’t matter as much with this kind of loan because it’s secure with valuable collateral.

Interest rates on traditional business loans vary, and repayment is often over three, five or seven years. And if it’s a secured loan, lenders can take your things if you default.

If Your Company Accepts Credit Cards

There’s another, more innovative choice for businesspeople who have been turned down for traditional loans or have other reasons they don’t want to deal with a bank. A credit card receivable loan is the perfect choice in working capital loans, and it’s based on your solid history of credit card receivables. The interest rate is not always as favorable as an SBA loan or even a secured loan, but the loans are quick, easy and generally repaid in less than a year.

When you accept a credit card receivable loan, a portion of your sales each day are automatically used to pay down your debt. This is done through a fixed percentage of your sales, so there are no surprises.

Anytime you encounter a situation where funds are needed and the source of those funds is uncertain, consider carefully whether a merchant cash advance is the right choice in working capital loans for you.

In many cases, it is.

At US Business Funding, we meet the needs of businesses like your every day with working capital loans. How may we serve you?

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