Startups are seeing tremendous growth, and new entrepreneurs are emerging every day with innovative products and services for niche markets. However, finding reliable funding or a good source of working capital can be challenging. Fortunately, there are robust working capital solutions available for startups so they can grow successfully and get the funding they need.
Unsecured Lines of Credit for Startups
When a business is just getting off the launch pad, most funding options are limited, and almost all require some form of collateral. Unsecured lines of credit offer the working capital startups need, without requiring any collateral at all. With a decent financial record, startups can access unsecured lines of credit, even if there is no established revenue record.
Merchant Cash Advance for Startups
Sometimes startups need an extra infusion of working capital to make it to the next big milestone. Using a merchant cash advance provides capital without placing debt on the balance sheet. A merchant cash advance can be used for anything a startup needs, from equipment to marketing to new hires, and more. Merchant cash advances also have flexible repayment methods, giving startups the funding they need without placing a strain on cash flow.
Small Business Loans for Startups
Small business loans are very versatile, and can provide startups with the capital needed for equipment, business assets, and even acquisitions or mergers. Small business loans are very available, but not always accessible due to low credit rating, income history, and other factors. With the right lender, SBA loans and can be processed quickly so your startup has access to capital without having to place projects on hold. Many startups use SBA small business loans for capital so they can maintain operations and focus on growth projects.
Purchase Order Financing
When startups want to position themselves for growth, purchase order financing can help. Purchase order financing is used to provide working capital to cover the cost of production for large customer orders, without crippling the producer with debt. Once the order is finished and paid for, the financing is deducted from the total on the invoice and the remainder is given to the startup as revenue. This allows startups to achieve rapid growth.
Accounts Receivable Financing
If your startup issues invoices on 30-, 60-, or 90-day payment schedules, the lag in revenue can restrict your cash flow. Accounts receivable financing, or factoring, improves cash flow by converting unpaid receivables to cash within 24 hours. Factoring services are debt-free and eliminate long waiting periods for revenue, while simultaneously improving cash flow and reducing the need for debt-based loans. Accounts receivable financing is used by startups that want to build capital reserves and position themselves for growth.
Web Finance Direct specializes in working capital solutions for startups. Whether you have just launched your startup, or you are experiencing growing pains and need to expand, the team at Web Finance Direct will work with you to understand your needs and goals, and create a funding strategy to ensure long-term success. To learn more about any of the above options, contact our offices today.