7 Non Traditional Ways To Finance Your Business

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  The percentage of total bank business loans that go to small businesses has steadily declined, from over 50% in 1995 to under 30% currently. As banks loan less to small businesses, others are filling the gap. Here’s 7 non traditional ways to borrow money fast. - See more at: http://fitsmallbusiness.com/non-traditional-ways-finance-business/
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  • 1. 7 Non Traditional Ways To finance Your business
  • 2. #1. P2P LOANS For Business Purposes
  • 3. Peer To Peer (P2P) Loan Providers Enable you to get an instant interest rate quote on a three or five year loan, fill out a loan application online, and find investors willing to lend you money. For business owners that need $35,000 or less in funding, a P2P loan can be a great option.
  • 4. Approval Requirements: Strong personal credit score and history. Those with scores of 660 or below need not apply. ! •Pros: Provides funds from one to five years at interest rates typically around 15%. •Cons: Failure to pay will hurt one’s personal credit score.
  • 5. Our Recommended P2P Loan Provider Is Prosper.
  • 6. #2. Alternate short term loans
  • 7. With banks lending less and less To small businesses, a number of companies have filled the gap, providing up to $250,000 in financing to small businesses for working capital.
  • 8. Approval: Generally, lenders are looking for profitable companies that have been in business over 2 years. ! Pros: Quick approval (1-2 days) for 6 to 24 month loans. Helps build a firm’s credit. ! Cons: Interest rates of 50% or more.
  • 9. Our Recommended Alternate Short Term Loan Provider is OnDeck.
  • 10. #3. Merchant Cash Advances
  • 11. For Retail Businesses Selling future credit and debit card sales is a popular method of accessing working capital.
  • 12. Approval Requirements: Most businesses that apply for merchant cash advances are approved. Businesses losing money and business owners with low credit scores can still be approved. ! Pros: Quick approval process and no personal guarantee of repayment if the business fails. ! Cons: Very high cost of money. Effective interest rates of 80% or more.
  • 13. Our Recommended Merchant Cash Advance Provider is Can Capital
  • 14. #4. Invoice Factoring
  • 15. Approval: Depends on a variety of factors, including the financial history of a company and the financial history of their clients. ! Pros: Quick approval for short-term financing of up to 90 days. ! Cons: With most factors, you will need to have clients send payments to the factor. This is not the case with FundBox, our recommended provider.
  • 16. Our Recommended Invoice Factoring Provider Is FundBox
  • 17. #5. Rollover for business Startups (robs)
  • 18. Approval Requirements: Must set-up a C Corp and specific type of retirement plan. ! Pros: No requirement to pay back funds or debt payments to make. ! Cons: Expensive to set up ($5,000). Business owner is risking funds from retirement savings.
  • 19. Our Recommended Rollover For Business Startups (ROBS) Is Guidant Financial
  • 20. #6. Receivable cash advance (paypal, ebay)
  • 21. If your business receives payment via Paypal Or does business through Ebay, you can receive a lump sum cash advance through selling future payments.
  • 22. Approval Requirements: The key is a consistent historical track record of sales / incoming revenue. ! Pros: Quick approval process and no personal guarantee of repayment if the business fails. ! Cons: High cost of money. Effective interest rates of 50% or more.
  • 23. Our Recommended Receivable Cash Advance Provider Is Kabbage
  • 24. #7 Sba guaranteed 7a loan
  • 25. SBA Loans are a traditional form of financing However our recommended provider SmartBiz has revolutionized the application process. You can now have your money in as little as 1 week.
  • 26. Approval Requirements: Generally, need a high personal credit score and two years history as a successful company. ! Pros: Provides funds for up to 10 years at interest rates as low as 6% ! Cons: With conventional banks, approvals can take weeks and sometimes months.
  • 27. Our Recommended SBA Guaranteed 7A Loan Provider Is SmartBiz
  • 28. Join The Community: www.FitSmallBusiness.com Click here to tweet this presentation. See the full article here
  • 29. Join The Community: www.FitSmallBusiness.com Click here to tweet this presentation. See the full article here
  • 30. Join The Community: www.FitSmallBusiness.com Click here to tweet this presentation. See the full article here
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