It is hard for a business to stay afloat with day-to-day cash. You need money every day to just keep the lights on and the employees happy. This can be extremely difficult to do when you hit a rough patch and are just spending more than you are bringing in. In uncertain times, businesses need to know that they do have a variety of options available to them. There are a number of unique ways that businesses can borrow money.
The Short-Term Loan
The short-term loan is growing extremely popular amongst business owners when they are in need of quick cash. And, this is because it is easy, simple, quick, and even businesses with bad credit and get the loan. Once you find a lender they will simply issue you a lump sum of money that will be paid back on an agreed upon time. This loan will be paid back in one lump sum as well. These loans are usually only anywhere from $500 to $1000, but they can provide the quick relief that you need. You can find loans like this at NeedMoneyNow’s easy loans.
Peer-to-peer lending might be a new way of borrowing money but it is taking off. There are a number of sites out there that will connect borrowers with lenders. You will actually be borrowing the loan for a single individual rather than an institution. These loans are also fast and can be obtained by companies that have a less than stellar credit record.
SBA Microloans can be extremely handy for any company that is need of a large sum of money. The United States Small Business Administration offers a number of loan programs that are specifically designed to launch and help grow businesses. One of the programs recently offered $50,000 to a small childcare center. The only downside to this type of loan is that it will require a lot of paperwork and not every small business will qualify. The loans usually come from nonprofit community-based organizations so they will be limited.
Private Credit Firms
In the wake of the financial crisis, there are now a number of private credit firms available. These firms realized how hard it was for small and starting businesses to get the loans that they needed so they stepped in and started offering their money. Due to the lucrative opportunities in this field, there are now more private lenders available than ever before. One thing that makes private credit firms different than some of the options mentioned above is that they are usually willing to offer out large amounts of money. Just keep in mind that there will probably be stricter penalties in the event that the loan isn’t paid back on time or paid back early.
When you can’t acquire a business loan, you always have the option of taking a personal loan. You can simply borrow money against your home or car that can then be used in your business. This will only be a good option if you have good credit.