3 Alternatives to small business loans

Everybody needs to ensure that they claim their very own independent company. Getting funds for small businesses is one of the primary worries that each and every entrepreneur has in their mind and discovering great financing right now can become a wonder for new business owners. It is not a problem what kind of business you are running. Is it a new company or another chain of your settled business you need reserves. Few out of all private business sees the essence of progress and there are many new companies that shut down each year because of lack of financing.

Right now, we will talk about every one of those potential routes through which you all can get a small business loan easily. Every one of these options is extremely compelling on the off chance that you need quick assets for your business.

1. Factoring

If you are going through a tough time and need some cash in Bulk than Factoring is a good idea. Companies consider factoring when they need lots of cash upfront to invest or buy new machinery for the business. This method is very helpful for giving a boost to your financial condition. Factoring is a finance procedure in which a company sells its goods on a discount to gather more revenue in less time. It is a very expensive way but you can generate lots of funds through it. In Factoring, if you pay 2% money to get one month advance it will be equal to 24 percent of your annual interest rate.  This will also create a bad image of your company in the market but still, you can design a better strategy through which you can utilize the method of factoring and also don’t lose your reputation in the market.

2. Getting a bank loan

The bank loan is another good idea through which you can get easy and quick funding for small business loans. The standards of bank loans are getting high day by day but still, there are many banks in the USA where the small business owners can apply for loans and also get them quickly. Sure banks have big interest rates and lots of paperwork but still, that funding can help you grow your small business. So, this is another way to gather quick funds when you are in need of it.

3. Use your Credit card

Getting funds through your credit card for your small business can be very risky but it is an effective way to gather quick funds. The main reason behind the risk of credit card funds is that the interest of credit card is way high than bank loans. On the other hand, you have to wait for a few weeks for the bank loan application to approve. So, it depends on your needs at the moment. If you can wait for the loan to approve than never go for credit card funds but if you have an emergency than credit card funds can become more effective. 

Do you think the Business line of credit is a fast way to get an SBA loan during Quarantine?

In conditions where almost every small business is suffering in the US. People are getting more loans to support their business. When it comes to small business loans the borrower wants to get it quickly. So in that situation, There are a few options that can help you get these loans fast. In this article, we are going to discuss the line of credits.

Getting the loan for a credit line can be easy or tough because every lender will examine your business qualification according to their terms and policy. Luckily, there are some straightforward steps you should follow to get a loan fast.

Check your credit score

A strong credit score will make it super easy for you to get a business line of credit. To borrow a small business line of credit, you must have a minimum of 600+ credit score. Although every lender has different rules and conditions, a credit score of 600+ is the least requirement of most loan providers.

If you want to get a business loan from the bank, then you need a higher credit score, maybe 1000+. Usually, ARP and charges of banks are higher as compared to private or online lenders.

Examine different lenders

Once you've found out what kind of business line of credit you qualify for, compare the amounts and rates of different lenders, and select the lowest and the most reliable one.

Apply online

Another advantage of not choosing traditional banks is that you can apply online. Most of the lenders offer online applications to make the process easy.

Why You Should Have a Business Line of Credit

The business line of credit is not like business loans (one time use); they're something you get before you need it. They are obtained for your business in case of any unexpected cash flow issues, which is common in the industry. It keeps you safe from searching for financing in a hurry and making wrong decisions (fraud or higher interest loan services, etc.). With a business line of credit, you pay only what you use, allowing you to keep a line open with the lender at a minimal cost.

Business Line of Credit Providers With Lower Credit Score and APR

Currently, you can quickly get the business line of credit from BitX Funding (within 24 hours). They're the leading online lenders with the portfolio of helping more than thousands of potential businesses. With a rating of 8.1 (powered by Trustpilot), they're reliable and trustworthy.

To Qualify For the Loan:

Your business must be in running for at least one year with annual revenue of 100k. For credit score, it's great if its above 600. They offer easy weekly payments, that will be automatically deducted from your business bank account.

BitX Funding offers a simple application process, all you need is some information about your business, like name, address, and monthly credit volume, etc. Fill up those easy fields with the amount you want to borrow and apply online. Their team will analyze your application and get back to you in a few minutes.

3 Types of Short-Term Loans that can Boost your Business

Many entrepreneurs have a relationship of love and hatred with the financing of a business, so they often leave short-term loans short. Interest and other accusations can cause an unpleasant taste in the mouth. You may feel that the loan has not only complicated financially.

On the other hand, loans are often a necessity. Based on industry research, interest rates on loans and approval for small businesses have recently increased. This means that more people will have the capital to pursue their entrepreneurial dreams. This is a good thing.

Unfortunately, despite a more favorable business environment for loans, it may still be difficult to get permission for a long-term loan or SBA loan. If so, do not be disappointed. You can find other types of funding.

Read on to find out the three options for short-term loans as well as the benefits and requirements for each.

1. Short-term loans from an online lender

Digital age allowed to apply and obtain a short-term loan from an online lender in one day. Operating in the same way as a traditional loan, payments are usually made on a daily or weekly basis, with short-term loans as well as interest.

Requirements for approval, as a rule:

• At least one year in business.
• decent credit rating.
• Annual revenue of at least $ 50,000.

As a rule, you can get from 2500 to 250,000 US dollars by short-term loans for a period of three to 18 months. Interest rates usually start at 10%.

The speed with which funds are received is a major asset because short-term loans can help you immediately avoid cash flow problems. There is limited documentation (always a blessing). In addition, funds can be used at your discretion, from wages to the purchase of seasonal goods.

2. The business credit line

Cash flow problems remain one of the biggest problems faced by small business owners. And about 84% say they can not get all the funding they need.

If there was a way to access money at all times? This will surely solve some money problems, especially daily needs.

This is exactly how a business credit line can benefit you. This can make sure you always have money to pay for utilities, suppliers and employees. This money can even be used for marketing campaigns to expand your business, pay for other debt, improve your office or store - and more.

The good news is that obtaining a loan for a business line can be much easier than traditional loans. Qualifications usually include the following:

• At least six months in business.
• $ 50,000 + revenue annually.

Your credit limit is likely to be between $ 10,000 and $ 1 million. USA, depending on your needs and the financial situation of your company. Interest rates typically range from 7 to 25%, which means you can get comparable rates even for long-term loans.

Another useful thing for a business credit line is that it gives you access to working capital, which means that the credit limit returns to the initial amount after reimbursement.

For example, if you use a $ 100,000 credit limit, the available credit will be $ 80,000. If you return to these $ 20,000 next month, the available credit will return to $ 100,000.

In addition, you pay interest only for withdrawals. This is good because you can use funds as needed. So, if your credit line has a US $ 50,000 limit and you will charge a $ 10,000 fee, interest is calculated only on those $ 10,000.

3. Financing equipment

Most businesses need some kind of equipment, whether they are computers or mobile phones for cars and vehicles. If you have a restaurant, think about how kitchen equipment is necessary for the success of your business.

Here is the image of equipment financing.

Equipment financing is the money you have been able to buy equipment directly. This can be a key form of financing for your business. The good news is that equipment loans are quite affordable.

There is no need to pay a deposit because the equipment itself offers a loan. Other typical requirements may include:

• At least 11 months in business.
• decent credit rating.
• About $ 100,000 in annual revenue.

The amount of the loan may be up to 100% of the cost of the equipment, and interest rates typically range from 8 to 30%. The term loan is the expected life of the equipment (which can make it a "long term" loan, depending on the equipment).

Responsible management of loans and short-term promotion

Obviously, there are many advantages to getting short-term loans. In fact, this may be exactly what your business needs to move forward.

In order to avoid deficiencies - such as the possibility of falling into a debt trap or in reasonable terms of appreciation - it is important to understand how short-term loans can help and how to choose, use them and return. Always count numbers, compare options, and use the loan that has the most financial value for your current business situation and future goals. Also, review your payment schedule to make sure you can handle it.

In addition to the benefits of money injection in your business offers, short-term loans can also be a bridge to more profitable loans such as the SBA Loan Coveted. By returning your credit in time, your credit assessment should be improved and you can move on to better credit products. This means that you can get a long-term loan that will give your business a steady growth for many years.

What’s the difference between long-term and short-term business loans?

A long-term Business loan includes repayment terms of several years after a detailed application process. A short-term business loan gives a company quick access to capital, sometimes in just 24 hours.

Whether working capital or another type of loan for a smallbusiness, the most important amount for you is probably the most important factor for you as a business owner.

However, there are many other components of credit, including long-term.

Whether your credit has short-term or long-term features, you can influence the amount you pay, in addition to the amount you can finally get.

Short-term Business Loans

For most business owners, a short term loan is the solution. These types of loans can quickly provide you with the necessary funds, sometimes in less than 24 hours.

And with the advent of more and more credit alternatives, it has become much easier for business owners to evade the restrictive credit requirements imposed by traditional banks and withdraw the money they need. other sources.

"In most cases, small and medium-sized businesses do not need long-term financing ...," said David Gilbert, founder and executive director of the National Foundation. "Alternative lending options, such as working capital loans or small ticket rentals, provide the flexibility and speed owners need to keep operations running smoothly."

In fact, short-term loans are an easier way for business owners to obtain liquidity and overcome financial obstacles, rather than getting into more debt and longer.

Long-term Business Loans

On the other hand, long-term loans may be necessary for some companies. This type of financing provides repayment terms over several years, which can sometimes take decades.

While short-term loans may have higher interest rates in the beginning, business owners who take long-term financing usually end up paying more interest. This is because long-term time allows you to accumulate over time.

It is generally harder for a business owner to secure long-term financing. This is because in most cases the more traditional credit channels will have to go through the strict qualification standards imposed by the big banks.

Which is the best?

Finally, what type of financing is most relevant to the needs of your business? For most small business owners, a short-term loan will probably be more appropriate. However, long-term financing may be necessary.

In any case, it is important to work with a lender who understands the work of small businesses and can customize a loan to support your success.

BItX funding is your online marketplace for Small Business Loans, Form SBA, Startup business loans, business lines of credit, Mid-term Loans, Short-Term Loans. BitX is where lender compete for your business.