In the wake of the coronavirus pandemic, many businesses continue to struggle. The Paycheck Protection Program (PPP) did what it could to help small business owners across the country. Still, it was an imperfect solution produced by an imperfect system, and many people fell by the wayside.
Fortunately, as you work to rebuild your business, other financing options are available to help you along the way.
Financing Options for Your Business
As you make progress toward restoring your business and operations, you may find yourself a little short on the capital you need to make it happen. While borrowing money from friends and family can help you get closer to your goal, it may not be a bad idea to look at other options—and there’s a pretty wide selection for you to consider.
Business Line of Credit
A business line of credit is a flexible financing option that keeps money right at your fingertips. Rather than one lump sum of funding, the credit is revolving, so it is ready for you when you need it most. Additionally, you can use this versatile source of extra capital for just about anything, and funds tend to be available in only 1–2 weeks.
Short Term Loan
If you’re short on time, a short term loan might be the way to go for your financing needs. When funds can hit your account in as little as 24 hours, you know these loans are all about speed. To match that hasty delivery, however, you can expect a pretty quick repayment schedule with terms of 1–3 years. On the bright side, these loans do come with a fixed interest rate, so you’ll know what you’re getting into from the beginning.
Business Term Loan
This loan is pretty much the daily bread and butter of business lending. A tried and true solution for financing, you can use a business term loan for anything from building out your business with new hires to getting it back on its feet and running normally.
The term “equipment” is a bit more broadly applicable than most people think—especially when it comes to equipment financing. Sure, it’ll cover purchases like a backhoe or forklift, but you can also leverage this type of funding to get yourself a new payment processing software, improve the office setting for your employees, or purchase that new food truck to get your restaurant on the road.
Accounts Receivable Financing
If your business is like so many others, unpaid invoices have likely piled up everywhere. Fortunately, there’s a way to turn them into capital. Accounts receivable financing can get you an advance on outstanding receivables, transforming money owed into money in your pocket. Additionally, if you’re confrontation-averse, once you lock in a lender with a quick application, they’ll take care of tracking down your customer and getting the payment sorted.
Business Credit Card
A quick and easy solution to business financing, business credit cards can boost your access to working capital while also building your credit as a business. Other than the obvious benefit of working financing ready in your wallet, business credit cards make it easy to monitor purchases and track business expenses—which is quite handy for bookkeeping purposes.
Do Your Research, Then Make It So
Like with any big business decision, you need to do your due diligence and ensure you’ve carefully considered all of your financing options before jumping in. With so many possibilities to choose from, it might be a good idea to speak with an expert to make sure you’re finding the best fit for your business and unique situation. Once everything lines up and you’ve narrowed down your options, you can confidently commit and make the right choice to rebuild your business.