There may be times when you need additional cash to cover business expenses. Perhaps you want to make a big equipment purchase, or you need cash flow while you are waiting for some invoices to be paid. Maybe you have a big expansion planned, but you lack the funding to carry it out. There are several ways to get this money.
This can be a great option if you do not qualify for a business loan. It is not as difficult to get, but it does require that you have a good credit score. You may want to get a copy of your credit report before applying to make sure that your score is in order and that there are no errors that need to be addressed. You may apply for a personal loan from a bank or a credit union, or you might look into online lenders by visiting this site. There you can figure out how much you qualify for, as well as the repayment terms that meet your budget.
While this route can be harder to gain approval, it does offer a few advantages. Although there can be a greater personal liability than with a personal loan, and you can typically borrow a larger amount of money. Your interest rates may be lower as well. In general, you will need to have been in operation for at least a year to qualify. You may also want to look into different types of loans depending on what you need it for. For example, some are especially for covering accounts receivable. You might look elsewhere if you are purchasing more equipment or planning an expansion. Banks, credit union and online lenders are all potential sources of money. The Small Business Administration can also connect you with lenders that offer low SBA loan rates.
Microlending and Crowdfunding
This is another option if your revenue is too small or there is some other reason you do not qualify for a loan. Like a personal loan, the money you get from microlenders is repaid at a higher interest rate. Amounts are generally for less than $35,000. Despite these limitations, you may be required to submit financial statements and a detailed plan. However, if you are unable to get other types of loans, this may be right for you. Crowdfunding is similar to microlending although the process of getting crowdfunded is quite different. There are several crowdfunding sites that are specifically focused on small businesses.
Many people may be unaware that grants are available for small businesses. You can look for federal grants at Grants.gov. You might also be able to access information about grants through the SBA. The SBA also has Women’s Business Centers that are particularly focused on helping female entrepreneurs.
Economic Development Programs and Corporate Programs
The SBA has an economic development department that may be able to help. Along with some big companies, the agency offers start-up support to minority-owned, women-owned, and businesses located in economically disadvantaged areas. There may also be opportunities for veterans. The Department of Veterans Affairs can provide more information on what these may be.
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