Alternatives to SBA Financing

SBA loans aren’t the only game in town; there are some alternatives to these loans that many small business owners might not know about. When you break it down, a SBA loan is still just a bank loan and if you treat it as such, it will still come down to many of the same factors and elements that are required for banks and other lending institutions to loan you the money.

If you aren’t willing to fill out mountains of paperwork or put down a personal guarantee, a SBA loan may not be right for you. Likewise, if you need cash right away, an SBA loan may not be suitable. In this instance, invoice factoring might be right for you.

Invoice Factoring

Invoice factoring? If you need access to capital right away, invoice factoring is the best way to get it. It is really just an exchange of cash for an asset. A provider can have the cash in your hands in less than 2 days and usually receives repayment through a fixed percentage from your daily receipts.

Equipment Leasing

Another way to get the equipment and supplies you need is through an equipment leasing program. With this program, you bypass the banks and the loan stage and skip right to the part where the equipment is delivered to your business. With equipment leasing, you not only have access to the best equipment when you need it, but you can get the equipment for very little money down and some reasonable monthly payments. Equipment leasing is becoming more popular with many of today’s small businesses and is one of the better alternatives to an SBA loan. With equipment leasing you get new equipment, low monthly payments and less hassles than you would normally get with the loan process.

Working Capital Loans

There is another alternative to SBA loans that is fast becoming a popular competitor; it’s called the working capital loan and it is a loan based on the gross sales of your company. Rather than relying on a credit file, the lenders look at your ability to make the monthly payments for the loan. This loan is especially good for new startups and small businesses that don’t have much in the way of a credit history but still need funding to take their business to the next level and remain competitive. A working capital loan is a much easier alternative to a SBA loan and this has many small businesses choosing it over SBA loans.

The SBA loan program is a good opportunity for startups and small businesses but there are alternatives and there is something available to suit every business’ needs. Finding one that’s right for you is easy and could save you a lot of time and hassle in the future.

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