Best Ways to Fund Your Business - 2020

Based on consumer and professional reviews

5 Ways to Fund Your Business in 2020
I. Dekel unveils 5 easy ways to finance your business in 2020.
By I. Dekel
Whether you've recently started a business or thinking about starting one, the ultimate question that keeps you, and countless entrepreneurs just like you from sleeping at night is how on earth to fund that business.

Lucky for you, the business financing scene is growing fast, offering effective funding ways for different business types - a short explanation about each one might help you choose more wisely.

So if you're wondering what the best option for you might be, consider these 5 great ways we've outlined for you, ready? Let's start.

Merchant cash advance - This funding method is fairly new and considered innovative in the finance scene. Fresh as it may be, the emance popularity it's already gained with retail businesses and the leisure sector is absolutely phenomenal. To make a long story short, the merchant cash advance is a lump sum loan that you get in exchange for a fixed percentage of your daily credit card and debit card sales - the lender gets a cut from these until your debt is paid. This way you actually you pay more when business is good, and less when business is slow, making it a quick and easy funding solution for many SMEs.

Equipment financing - A method in which a loan or lease is used to purchase or borrow different kinds of equipment for your business. This could be any physical asset, like office furniture for example. In equipment financing, the purchased assets act as collateral, so chances for business owners to get approved for equipment financing are fairly high. This also means they won't have to offer separate collateral like with so many other types of loans.

Invoice factoring - This type of debtor finance is a financial transaction in which the business sells its receivables (invoices) at a discount to get up-front pay from a service provider. The method will probably work best for companies that have poor credit since they often fill orders before they're paid. Exchanging invoices for money allows businesses to offer their receivables to numerous factoring companies, banks, and other finance companies. This lets lenders bid on the invoices which can then be sold in a bundle or one at a time.

Purchase order financing - Similar to receivable factoring, purchase order financing is a financial tool with rapidly growing popularity in the lendres market. It offers a short-term commercial finance option for businesses to resell goods at a markup in order to pay their suppliers. This is a great solution for small companies or businesses in which it allows them to accept large orders and adjust the loan basis to their needs. In case orders slow down, they're not committed to this solution and can stop using it at any time.

SBA loans - A loan program by the Small Business Association is a fantastic way for you to help your small business grow. To qualify for a loan of this kind it would require some intermediaries and conditions such as management assistance and training. That being said, the biggest advantage of this program lie within those same training and assistance we mentioned before, often increasing your chances of success.

Want to learn more about these ways of business funding? Make sure to click 'Get Offer', fill in your details and a professional will get back to you with everything you need to know.

Merchant Cash Advance

A merchant cash advance (MCA) isn't really a loan, but rather a cash advance based upon the credit card sales deposited in a business' merchant account.

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Description
A business owner can apply for an MCA and have funds deposited into a business checking account fairly quickly - sometimes as quickly as 24 hours after approval. MCA providers evaluate risk and credit criteria differently than a banker or other lenders. They look at daily credit card receipts and bank deposits to determine if a business can pay back the advance in a timely manner. As a result, rates on an MCA can be much higher than other financing options so it's important you understand the terms you're being offered, we can offer you the best terms and rates tailored to your needs.
Features
In business for at least 6 months

Up to 1,000,000$ only need application and 3 bank statements

Minimum credit score: none

Approvals up to 24-48 hours, can be funded in same day

$120,000 in annual revenue

Equipment Financing

Equipment Financing's fast approvals and no money down payment help make the process quick and easy.

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Description
We'll custom tailor a program that meets the unique needs of your business, including monthly payment amounts, payback terms, upgrades, and buyout options.
Features
In business for at least 3 years

Up to 250,000$ only need application and 3 bank statements

Minimum Credit score 680

Approval 2-3 Business Days

$250,000 in annual revenue

Invoice Factoring

Invoice Factoring is a service that helps business' maintain cash flow positive instead of laying the money out until they get paid.

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Description
You decide how many invoices and which to submit, fund only what you need without long term contracts. We can fund up to 90% of your invoice.
Features
In business for at least 3 years

up to 250,000$ only need application and 3 bank statements

Minimum credit score 620

Approval 2-3 Business Days

$250,000 in annual revenue

Purchase Order Financing

Purchase Order Financing is a tool that can help you fulfill orders, that need to Purchase Order Financing (PO Financing).

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Description
This funding option is for businesses that need cash to fill single or multiple customer orders. Cash flow problems exist in many companies, so for some of them, purchase order financing is a great way to go.
Features
In business for at least 3 years

Up to 250,000$ only need application and 3 bank statements

Minimum credit score 620

Approval 2-3 Business Days

$250,000 in annual revenue

SBA Loans

The SBA helps small businesses get loans.

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Description
The SBA works with lenders to provide loans to small businesses. it sets guidelines for loans made by its partnering lenders, community development organizations, and micro-lending institutions. the loan amount will be based on how much and which collateral is put up, if purchasing real estate loan can go up to 5,000,000$. Only for working capital it can go up to 350,000$.
Features
In business for at least 3 years

Based on your total financial package and if and what you put up for collateral

Need full package Documents ( full financials both Personal and business 3 years back and all business financials)

Minimum credit score 680

Approval 2-3 Business Days

$250,000 in annual revenue

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