Small Business Loans: Your Last Resort to Accumulate Growth Capital

Posted by GeorgeVelvet on January 12th, 2014

Starting up a new business on your own was never an easy task and it is especially so when it comes to arranging the finance. You might have already made some business expansion and development plans but you are lacking enough funds for materializing your plans. This happens with many businesses that they fail to earn credibility and cannot simply qualify for small business loans. Cases of loan application turndown do not imply that you just cannot proceed with your specific business plans. There are a number of agencies now that offer small business cash advance and other funding programs. Let’s take a look at the available options for small business funding before taking a closer look at this easy business loan bad credit option. 

Banks and SBA

You should first apply to your bank to see if they have a funding program suiting your requirements. If you have a fairly strong credit history as well as a good credit score, you are most likely to get approval for the loan. Even if you can’t manage the required cash from your bank, consider applying to SBA (Small Business Assistance, a federal agency). Even if SBA turns down your application for loan, there are other options still open.

Opt for secured loans

This is probably the mostly exploited type of financing by small business owners. Find out how much assets you have including the savings accounts, retirement accounts, and equity in real estate, recreational equipment, vehicles and other movable/immovable assets. Consider if you have something to be used as collateral that you can show to your lender to secure the loan. If you do not have any assets to show, look for other options.

Search for an Angel Investor

You may ask for help from affluent people with whom you share a good rapport. Since they know you personally, it is quite obvious that your credit score won’t be a major factor in getting a business loan bad credit. Check out if someone in your acquaintances have started any business that falls in the same niche, and if possible, consider asking them for financial advices and consider entering a strategic partnership with that organization. This will help them get affiliated to your business in exchange of ownership equity and convertible debt. They will be ready to invest in certain areas of business development with genuine interest. However, business angels are not your last resort. The best small business funding option

Approach the small entrepreneur loan providers

If you find it difficult to arrange the funds from either banks or family members, consider approaching the private lending institutions that offer small business loans to entrepreneurs. Do not forget to compare the interest rates and other fees like processing fees, early repayment fees of different lenders before entering contract with any particular lender so that you can avail the best possible interest rates and easy repayment options.

Merchant cash advance providers are arguably the best option for hard-pressed business owners who struggle for sustenance in this unsteady economy. 

Are you looking for small business loans for your business expansion/development? Elite Funding has been America’s most trusted funding source. We offer business loan bad credit to small and mid-sized companies. Visit website to know more about micro-financing programs offered by us.