3 Great Options For Getting A Business Loan
If you’re a business that has been hit hard by the coronavirus pandemic, like so many others out there at the moment, then you may be in a situation where cash is a little short at the moment. While the United States government has been offering a substantial amount of money in loans for businesses that have been affected by the pandemic, there still hasn’t been enough money for each business to receive the funds that they need to keep their doors open.
If this sounds like your business’ situation, then check out a couple of the alternatives below to see if any of these other business loans will work for your company.
Credit Union Business Loans
Credit unions tend to work with businesses of all sizes- big or small. They’re known for being able to offer business loans that come with a reasonable interest rate. The top credit unions are also known for providing decent returns and excellent service to help the businesses that they’re working with find what they’re looking for.
Credit unions tend to require some form of compensation for being able to provide their clients with the options for some decent loans and for managing to pull the loans together. They can be most helpful to businesses that are having a slow period, are looking to branch out towards new areas, or have had some unexpected business costs.
If a credit union doesn’t produce a business loan with rates that you’re happy with, then you still have some other options for financing your business.
Revolving Lines Of Credit
A revolving line of credit can also help your business in times of financial difficulty. It works more like a credit card than like a loan. You possess the flexibility to use only the amount that you need at the time, instead of being responsible for a whole loan that would be passed to you after you completed the application for it and were granted the credit union business loan.
Revolving lines of credit also have an interest rate, but you should look at different locations to see which ones would offer you the best deal becauserevolving lines of credit can be very competitive in terms of the interest rates that are offered. Most revolving lines of credit can be conveniently sent to your business through your business’ checking account.
Invoice Factoring & Invoice Financing
These two methods will allow you to receive money from clients from payments that are still outstanding. While the two sound very similar, they have a couple of differences. Invoice factoring allows you to sell your outstanding invoices to a lender. The lender will buy these invoices off of you for slightly less than what all of invoices would have collected from your customers. The lender will then be responsible for getting the money from your clients.
With invoice financing, the lender will let you “borrow” the money while you wait on clients to pay you. When they do, you’ll pay it back to the lender.