SBA loans are not the single game in town; there are somealternatives to such loans that many small business owners might not realize about. When you break it down, an SBA loan remainsjust a bank loan and should you treat it as such, it will come down tomany of the same factors and components that areneeded for banks and other lending institutions to loan you the cash.
An SBA loan maynot be right for you, if you’re unwilling to fill out piles of paperwork or putdown a personal guarantee. Also, should you will need cash immediately, an SBA loan may not be appropriate. In this case,invoice factoring may be right for you.
Invoice factoring? Invoice factoring is the ideal way to get capital right away, should you have a need foraccess to it. It is really only an exchange of money for anasset. A supplier can receive the cash in your hands in less than 2 days andgenerally receives repayment through a fixed percentage from your daily receipts.
Another way to get supplies and theequipment you need is via an equipment leasing program. With this particular program, you jump right tothe component where the equipment is delivered to your business and avoid the loanstage and the banks. With equipment leasing, you not only have access to the bestgear when you really need it, but you can get some acceptable monthly premiums andthe equipment for almost no money down. Equipment leasing is one of the better choices to an SBA loan and isgaining popularity with many of today’s small businesses. Withequipment leasing you get low monthlypayments, new equipment and hassles that are less than you would usually get with the loanprocedure.
There’s another choice to SBA loans that’sfast becoming a favorite adversary; it’s called the workingcapital loan and it’s a loan based in your company’s gross sales.Rather than relying on a credit file, the lenders look at your capacity to make the monthlypayments for the loan. This loan is particularly good for new and smallbusinesses that do not have much in the way of a credit historybut still want capital to take their company to the next grade andstay competitive. Aworking capital loan is a much easier alternative to an SBA loan and thishas many small businesses picking it over SBA loans.
The SBA loan program is a great chance for small businesses however there are options and there issomething available to suit every business’ needs. Finding one that’s best foryou is easy and might save you a lot of time and hassle in the future.