There are a number of different funding options available for business owners today which requires various criteria being met in order to receive the funding. The purpose and the urgency of the funding should be taken into consideration when choosing your funding option as there a number of stages that must be met prior to being accepted. Below are examples of the most common types of business funding available.
Options on offer from your bank usually include unsecured business loans. secured business loans business credit cards and overdrafts. These are based on the circumstances on the business and the assets available at the time of application.
There are various options available only if the business can satisfy the lenders requirements or in the case of business grants you must meet the strict criteria to be eligible.
With any of the funding options above, business owners should be aware of the timescales for the funds to be released, which can run into weeks.
Does your business have a merchant account, if so have you thought about cash advance as a funding option?
A merchant cash advance is not a loan but a pre-purchase of your businesses future card sales. The merchant provider secures the right to retrieve a portion of your future card sales each month, but you as a business can receive a lump sum that is paid at the outset of the agreement and because you’re not tied to any fixed amount, you repay less when things are slow and more when business is flourishing.
Eligibility is simple and is based on your card sales history, your business can access finance equalling its average monthly turnover of credit card transactions and the funds can be released within a week.