Business Loans Options
the best ways and options to get a business loan
in this article I'm going to explain what you need to know about business loans,
well we're really going to walk through a bunch of different loan options that are available for you and give you an idea of some loans you can get approved for right now
well we're really going to walk through a bunch of different loan options that are available for you and give you an idea of some loans you can get approved for right now
1- Cash Flow Financing :
so cash flow financing is the first one i wanna mention its the fastest and easiest way you can get a business loan right now you can get financing in less than 72 hours if you've been in business one year longer and have consistent cash flow of about 10,000 a month in revenue
now personal credit doesn't matter and you don't need collateral to get approved it all you need is a quick bank statement review which is why I said it's the fastest and easiest way right now to actually get a business on
2- Unsecured Financing:
unsecured financing is also available you can get up to $150,000 in financing even as a start-up you can get 0% rates for 6 to 18 months and again you don't need financials you don't need to have collateral all you need is good personal credit you don't even need to verify any kind of cash flow to actually get approved.
3- Account Receivable Factoring:
with account receivable factoring or AR financing you can get up to 80 percent of receivables financing so actually what happens with AR financing is that you know you possibly have somebody that owes you money you're a business and other business owes you money instead of waiting to get paid with AR financing you can get 80 percent of what's owed to you advance within 24 hours you've got to be in business one year for this the receivables have to come from another business or the government and you get a rate of about one and a quarter to five percent so really low discount rate with this kind of financing .
4- Securities Based Financing:
you can get a loan to value of about 70 90 percent really low rates well under five percent as low as 1.6 a working capital line of credit and you can get approved with challenged credit all you need is some kind of stocks or bonds or have a guarantor that wants to commit their stocks and bonds as collateral you still earn interest on the stocks and bonds and get a really cool way to get financing for your business .
5- Inventory Loans:
with inventory loans you can get financing against inventory you already have if you have inventory of about a half million or more you can get approved,
used to be about three hundred thousand but now we see more commonly about 500 thousands required to get approved but you can get to an actual working capital credit line
now you can't lump together a bunch of different types of inventory to get approved if you have inventory if your retail store for example have a bunch of different kind of inventory on the shelves that you can definitely get approved and again a factory or retail store is a perfect example of some companies that actually might have that inventory.
6- PO Financing:
in purchase order financing you can get approved for five thousand dollars or more if you have outstanding purchase orders and get ninety five percent of the purchase order amount financed
so if you need something if you need like a t-shirt embroiderer and you need to order the t-shirts to embroider for a big order well you can get purchase order finaning to get those t-shirts paid for and get financing ninety five percent of that cost paid for so you could actually fulfill the order and then use it to pay off the purchase order financing so it's a really cool way if you have outstanding purchase orders to get financing because the actual financing source issues a letter of credit to make sure that whatever it is you need to be able to fulfill your product you actually have access to without having to pay all that money out of pocket .
7- Equipment Financing :
with equipment financing you have some kind of major piece of equipment then you know you can qualify to borrow against that equipment and get a loan,
lenders are not going to combine a bunch of small pieces of equipment you need to have one major of equipment to qualify and they're usually going to want the first and last month's payment to get approved and you can get loan amounts up to two million
now there's actually a lot of options here you can get financing to buy equipment even as a start-up you can get financing to lease equipment if you bit of business a year or more or you can use this program to borrow against equipment that you already own
so a lot of different options available .
8- 401k Financing or IRAs :
now a 401k financing it works great if you have a 401k or IRA you can actually get financing for about a hundred percent of the value of that 401k or IRA
rates are usually less than five percent so very low rates and ultimately you're setting up a new business and/or your existing business and you're rolling over your 401k into your new business so it's an IRS proven strategy in a great way to get low interest rate financing five percent or lower against your 401k while still getting the benefits of that 401k
9- Business Credit :
business credit is a brilliant solution for start-up businesses and existing businesses you can get initial vendor credit immediately with business credit you can get major credit at most major retail stores like Walmart Amazon Dell within 90 days or less and you can get cash credit like visa cards mastercards fleet credit cards auto financing in about 10,000 50,000 auto financing even higher with business credit so it's another great way to get financing .