Best Reliable Sources for Small Business Funding
Every day people are looking for capital or funding to inject into their small businesses. And thankfully there are lots of avenues through which small business owners can access funds, each one with it’ pros and cos. At newcityfinancial.com we help business owners to determine the best source of funding and the one with which gives them the highest chance for approval.
This is the most popular source of funding and the first considerations for a lot of start-up or small businesses. Since the main purpose of banks is to lend money and earn interest, anyone with a good credit score has a chance of being awarded a loan. At newcityfinancial.com we advise business owners to think of alternative loan sources since traditional banks churches, exorbitant interest rates which can plunge your business deep into debt and frustrate you.
Over the last couple of years, crowd-funding has skyrocketed in its popularity. Sites like FoFundMe and Indiegogo have made it easy for one to get investors of small businesses to expand. Although this is not always a reliable source, popular businesses can always get enough money to reach the minimum goal.
Merchant Cash Advance
This is a lot similar to banks except that it charges less interest rate and is more secure. Getting your loan approved by a merchant cash advance lender is also much easier than getting your loan application approved by a bank. The requirement is that your business must gross an average minimum of $10,000 a month to apply for $500,000 and so forth. The application can be made online and usually take 3 business days to be processed.
The payment procedure for merchant cash advance lenders is also distinctly different. The business can agree to pay a percentage of their sales which will be deducted automatically each month and depend on the profit the business has made. This makes this source more reliable and convenient.