10 Popular Commercial Finance Options

If you want to build a grow a business, you are going to need capital. How you raise capital can be as significant in making your company a success as any other factor. Finding the right commercial finance option for you requires research. Below are 10 ways that businesses raise funding that may be able to help you.

1) A Bank Loan

You could use a bank loan to help pay for your business expenses. This is generally an inexpensive form of funding that is well-regulated. However, it can be hard to qualify, especially for a new business.

2) Retirement Funds

If you have retirement accounts, you can use some of the money to help fund your business. This is potentially risky, but it means you won’t owe anything to anyone.

3) Credit Cards

Some businesses don’t need that much funding. Credit cards can sometimes be a good way to get short-term funds. Again, this prevents you from having long-term payments or equity sacrifices.

4) Factoring

If you are able to bring in orders quickly, sell your invoices. This is a good way to get paid for your sales before you normally would. This also helps streamline cash flow.

5) An Advance on Earnings

In a similar vein, consider getting an advance against future earnings. Some lenders will work with you on a merchant or business cash advance.

6) SBA Loan

The Small Business Administration works with lenders to offer very favorable loan terms. These require collateral and take a while to apply for, but they are worth it.

7) Angel Investment

If you can find someone to act as an angel investor, that can be a great way to bring in some much-needed capital. You will need to sacrifice some equity but if an angel believes in you and your business, you will have a great partner behind you.

9) Microloans

Some organizations offer small businesses microloans. These are small amounts, sometimes as little as $500, but are offered flexibly and usually with good terms. They are often motivated by a desire to help businesses.

10) Friends and Family Funding

Sometimes you can get help from loved ones who want to see you succeed. It can be awkward to ask but you may be surprised. This is a great form of funding because the investors care about you and your success.

Discover more about ways to fund your business. With the right commercial finance options, you may be surprised by how much you can achieve.

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