STARTUPBIZHUB

Business Loan Alternative

Business loan helps in many ways such as starting a business as well as in expansion. It is a sort of business financing that helps many business owners as the requirement increases.

Nevertheless, business owners can also opt for business loan alternative.

There is nothing wrong to apply for business loan especially if you will use it to finance a small business. Obviously, starting a business no matter how small or big it is it would still require start up capital. Likewise, applying for business loan also helps to make the business stay afloat. As the business grows the requirements also increases and business loan can be used in buying new supplies, expand the business as well as pay off debts. However, obtaining business loans from banks involves strict rules and guidelines that borrowers should deal with. Aside from the less lenient policies set by the bank in approval of business loans, the borrower will also deal with the additional requirements.

Applying for Cash Advance

Another criterion that would make the approval of the business loan difficult is the bad credit history. This is one of the risk factors that bank and other lending companies are taken into consideration before approving the loan application. Fortunately, there is a business loan alternative that business owners can choose. Applying for cash advance is a good alternative for business loan. Aside from being less stressful you can obtain the fund faster. However, cash advance is only ideal for businesses that accept credit cards. The processing of the application is shorter and requires lesser requirements as compared to bank loan. Usually, the application gets approval immediately and the fund is disbursed within 72 hours. This is the best alternative ideal for emergency situations.

The good thing about cash advance is that the lender does not put strict reviews about the credit history of the borrower. Credit history is not a big deal as long as you meet the necessary requirements you can qualify to apply for this loan alternative. Likewise, the payment terms in cash advance are lighter as compared to business loan provided by the bank. Generally, the terms of payment depends on the amount borrowed. This means that the higher amount you borrowed the longer time of payment. However, the interest rate in business cash advance is higher and the payment can be paid monthly or in single drop.

Another alternative for business loan is the invoice financing. This option helps business owners to obtain financial stability. However, just like business loan from bank, invoice financing companies are particular about the credit worthiness of the borrower. In addition, you will also need to place collateral for the amount taken. Whatever alternative you may choose the important thing to keep in mind is to obtain the amount that you can afford to repay without further aggravating the finances.

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1 Comment

  • beryl lee said on December 12, 2012
    Phnom Penh, Cambodia. Small cafe bar. Need start up loan or grant. Can you advise any NGOs or other organisations that may be helpful?

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