Private corporate loans.
Did you know that there are other companies out there big and small that all they do is loans to small businesses? Its their business how they make money and theyre pretty good at it. In order for these private lenders to be on business and to earn profits just as you want, they must actually make corporate loans to companies just as your banks do not need, as they have clearly shown.
You are their targeted customers and they are there for you. Private lenders have more space because they do not have regulators to look at their every move and as such have created more products more business loan programs to suit your individual needs. In addition, most decisions by these lenders were made right there - no waiting weeks or longer.
How do they do this? Well, they do not look at your entire business or your total cash flow or your overall profitability. They look forward to the next event in your work cycle - where your company earns revenue. It all builds on asset conversion. Your company lands a new customer, completes the job and is waiting to be paid. The lender knows that you will be paid and will provide your business with working capital until that time. Then you start the process again. Thus, these private lenders will lend to your outstanding accounts receivable - not based on your total profit or the long-term cash outlook for your business.
Most entrepreneurs hate to use personal resources to get business capital. But when everything is said and done - money is just money. However, personal loans have been the catalyst for growing new businesses since the beginning of the year. For a corporate loan, banks want cash flow, profitability and commercial security. Items that most new or small businesses do not have. Personal loans, however, do not have such high demands. Rental rates are on record lows and open the possibility of using equity for money to start or grow your business. Build your business and use the business to pay off your own capital loan. No different than taking a business loan, building your business and paying the loan. But with your own capital loan you get a lower interest rate and longer maturity for lower payment and greater flexibility. In addition, these loans are so much easier to get approved. Finally, use your personal income to make a business loan to your company. That means keeping your job or getting one and running your business part-time until its strong enough to support you and yourself - all funded by money you make from your job.
Since the banks have not lent to small businesses over the past four years, other lenders have intensified to fill some of the gap that remains. Some alternative lenders are finding new ways or better ways to provide the old tried and proven methods of corporate finance - like Business or Merchant Cash Advances. If your business earns revenue from customers who pay by credit or debit card, your sales processor can make money against future customer payments. As this is now one of the leading ways to finance small businesses today, many of these lenders have innovated new ways to provide these loans programs that can meet almost any business at any stage of development. Further alternative business loan resources to be investigated are micro-credit loans that have programs for both startup activities - up to 35,000 in loan amounts - and existing companies - up to 50,000 in loan amount. And never forget other resources like city-pass banks and traditional lenders all together like peer-to-peer social lending where other people, just like you, become your small business lender.
Friends and family loans.
Finally, tap those who feel the best. Most lenders or investors in small businesses do not need to focus on the business itself but on the people who run it. If you can show a track record - that you can run a business and make money - then you have a better chance of getting your loan approved. But if you do not have track record and can not convince a lender about your abilities, you can still convince those who feel the best - like friends and family. If you believe in your business and your friends and family believe in you - then you have the perfect match - win everyone. While personal loan resources are the main way that most small businesses are financing, friends and family loans are a close second.
Business Money Today offers a simple option for small business owners or starting companies to find lenders who want to work with them. It is free to search and requires no personal information. You are looking for, you compare and you decide. So easily find the business loan your business needs today.