You might have this great business idea that you would like to bring to life but unfortunately, you do not know where you can obtain quick and reliable funding for your business. Well, this should not worry you. With the ever-changing financial landscape, you can explore tons of funding options other than the traditional lending options. Here are some of the most common ones.
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Business credit cards
Credit cards make it possible for you to acquire goods for your business and pay for them later. In essence, the cardholder acquires goods from a merchant, a supplier in your case, and the card issuer pays for them. This comes on the promise that you will pay for the full cost of the goods plus other agreed charges. They are extremely helpful for your starting businesses in several ways:
- Allows the business to monitor its spending
- Extended warranty protection on the goods purchased by the credit card
- Offers rewards such as cash back on all purchases.
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Installment loans
Installment loans are a great way to fund your business since the repayment is staggered. You just have to pay fixed amounts at regular intervals over a given period. This makes it possible for you to repay the loan gradually as your business picks up. In addition, they are easily approved by lending firms such as https://www.libertylending.com/ as opposed to traditional payday loans. Even more, they are offered at highly competitive rates in the market. However, you should take care not to get into debts that you might not be able to repay, especially if your business has no prospects of picking up fast enough.
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Personal loans for business
As most folks, you may not be aware of this option as a viable source of capital for your small enterprise. Personal loans, unlike business loans, have many advantages including:
- Small amounts that can be repaid over a long time
- No collateral needed, which is an excellent deal for newbies like you
- Relatively lower interest rates
- No established business history needed
However, as the adage goes, you should never mix personal finances with business finances. This may not be an issue in the initial stages, but as the business grows, make sure you draw a line between the two.
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Online lending
This is among the most popular crediting forums alternative to traditional creditors like banks. They offer the advantage of speed, both in filling the loan application forms and in the issuance of funds. Now, with the advent of algorithms and technological advances, online lenders can analyze your credit standards using traditional metrics like personal credit score and non-traditional metrics such as social media and vendor payments.
Here are some additional benefits online lending offers:
- Easier to apply for since it’s online
- Cheaper since no additional charges are incurred due to physical interactions cost related charges
- Wider range of options due to a large number of providers
Bio
Newton Hofmann is a seasoned financial analyst at JP Morgan bank. He has a keen interest in start-up businesses loan funding. He has written books, blogs and newspaper columns on this for New York Times. To read some of his posts, visit http://libertylending.com/.