Ways to Fund Your Small Business

100-Dollar Bills on a White BackgroundBusiness financing is often a challenge, especially for entrepreneurs who are just starting on the path of business ownership. Whether you are looking to start your dream business, expand your start-up company, or introduce new products and services to your clients, here are a few ways you can get funding for your business.

Business Loans

There are many lenders out there offering various loan products for small businesses. Some are banks while others are independent financial services providers. When checking out a financial business company, look at their loan terms and rates, and evaluate which one is best suited to your needs. Do your research and find out if there are any hidden terms or fees before you sign up for a loan.

SBA Loan

The U.S. Small Business Administration also helps entrepreneurs to start and run their business by giving them loans. An SBA loan, however, is stricter and requires a guarantee that it will be repaid.

Factoring

Factoring involves the selling of a company’s receivables at discounted prices to get cash up front. This method is good for companies with poor credit. However, factoring is expensive since a percentage, usually about 2% to 3% of the total amount, is charged as fees.

Credit Card

If you need to clear small bills when in a cash crunch, your credit card can come to your rescue. However, using one to fund your operations is a little risky as the rates are expensive and you can get into a financial mess if you fail to manage your debts well.

Whether you are just starting or already growing your business, you will need to seek financing help to keep it up and running. Make sure to weigh all your options well before you make any decision.