Traditional Business Loan Alternatives
Grants are like scholarships for small business owners. The beauty of a grant is it does not have to be paid back and there are various grant programs for startups. “The grant process is generally not too onerous, and requires little more than a business plan and 10 to 15 pages of paperwork,” writes Tom Nawrocki in an Entrepreneur article titled “Creative Financing.”
Small business owners can apply for multiple grants, increasing the probability of receiving one. There is a significant amount of money set aside for green initiatives through Obama’s stimulus program. Therefore, now is the best time for green businesses to seek out grants. According to Forbes, and estimated $ 80 billion is aimed at “greening the economy.”
ARC loans are emergency loans developed by the SBA, specifically for “small businesses facing immediate financial hardship to help ride out the current uncertain economic times and return to profitability.” This program provides up to $ 35,000 to these small business owners and the money can be used to pay off existing debt.
Business Cash Advance
The business cash advance is an excellent alternative to the traditional business loan because they are easy to apply for, easy to qualify for, easy to repay and easy to renew.
Providers utilize credit card factoring and are able to advance small business owners up to $ 500,000 in business funds.
Advances are only repaid when customers make credit card purchases.
To qualify for a business cash advance, one must have owned a business for at least six months. The business must process a minimum of $ 3,500 in monthly credit card sales and there must be at least one year remaining on the business lease.
Merchants can get a free online quote, to find out how much they can receive in a business cash advance.
Gaston C. writes articles about Business Loans for Merchant Resources International.