Small Business Loans: Popular Sources for Funding Your Business
New resources are emerging in the financial arena as potential providers for small business loans, and this is good news for business owners who want to avoid using personal savings or borrowing from friends and family. The trick is in deciding which of these new sources of capital best fit your circumstances, and can be most advantageous for your business.
Credit Unions and Community Banks
In some ways, these sources of revenue are the very best for a small business, because they benefit the most from checking and savings account deposits made by any local business. In many cases, this motivates them to offer the most favorable terms to local small businesses, so this is a worthwhile avenue to check out for small business loans.
Although it does take a while to arrange for an SBA loan, if you can survive that waiting period, it can be a great option for a small business. For one thing, the cost of an SBA loan tends to be significantly lower than many other types of loans, and they are less stringent in requiring years of business history before extending a loan.
Probably the fastest way to get an infusion of capital into your small business is by working with an alternative lender, since they are not subject to the same regulatory constraints that traditional lenders are. These type of small business loans are particularly helpful for new companies which cannot secure funding elsewhere, and for those companies which don’t have particularly favorable credit scores.
Personal Credit Cards
One of the reasons that personal credit cards can be more advantageous to use than business credit cards, is that there are many more protections afforded to personal credit cards. Personal credit cards also have lower interest rates than do business credit cards, so they cost less to use. However, when using this option, it’s important to keep detailed records about personal transactions versus business transactions, so as to maintain accurate business records.