Since the onset of the Great Recession in 2007, small businesses have continued to grow as more people are taking a leap into becoming an entrepreneurs. Although small business (as well as job creation) is growing slowly and steadily, many small business owners still struggle with access to funding. It’s important that small business owners in need of funding stay abreast of the many options available to them to capitalize their business. Even though traditional banks and lenders have tightened their belts by implementing stricter requirements for loan approval, new alternative lenders are popping up all over the place to fill the void. Many of these companies are excelling at offering options that traditional banks and lenders have failed to provide.
Where Can You Find the Other Funding Options?
Technology has made it possible for small business funding companies to connect with and service small business owners online. In fact, here is a list of web-based small business financing companies that weren’t around a few years ago:
- Dealstruck – This company offers terms loans and asset based lines of credit to small business owners who qualify. For their primary business term loan and asset based line of credit program, all your business needs is a solid track record of profitability, strong assets to provide as collateral (i.e. accounts receivables), and a solid history of paying down debt in a timely fashion. For their secondary revenue secured term loan, your business is not required to have an extended borrowing or financial history. This program works well for new businesses that are lacking assets but may be generating sales on a daily basis. Repayment terms range from 3 to 36 months with funding amounts totaling up to $250,000.
- Can Capital – This company has joined the pool of merchant cash advance providers. These types of small business finance companies often realize that small business owners may not have the best personal credit but their businesses are still bringing in daily revenue. Merchant cash advance companies typically lend strictly based on that –how much daily revenue your business is making. Can Capital offers a merchant cash advance program where you can obtain up to $150,000 without the need to pledge collateral. Your past personal credit history is not a major factor in determining your approval and you could receive funding in as little as 3 days.
- Fundera – This company doesn’t offer you any funding directly however, they offer you a platform where you can pre-apply for small business financing with a variety of different lenders and pick the lender that’s most suitable for you. Fundera is amongst companies like Lendio.com that offer a do-it-yourself platform to entrepreneurs and small business owners seeking capital. These platforms are great if you don’t know what options are available to someone in your unique situation and you want to become aware of those options. They are also great for connecting with funding sources that may be able to fund you when no one else can.