Small businesses of all types need financing at some point. Whether it’s working capital, equipment, growth solutions, or anything else, finding the right financing is essential to success. However, some businesses may not meet the requirements to secure traditional loans, nor do business owners want to take on unnecessary debt and impact their credit ratings for loans that are too large to handle. Fortunately, there are ways to finance your business without breaking your budget.
Working capital is versatile and can be used by businesses for making purchases, marketing, hiring employees, smoothing out uneven revenue cycles, and more. For businesses that use a point-of-sale system, a merchant cash advance is a great working capital solution. A merchant cash advance provides debt-free financing and discretionary working capital. Instead of monthly payments, a percentage of every sale is used to repay the balance.
Sometimes businesses need a reusable source of capital, but may not have the collateral to secure financing through a traditional loan. There are unsecured business lines of credit with both revolving and non-revolving options that can be accessed by new and small business owners who want more flexible and manageable financing.
Equipment on a Budget
The cost of purchasing equipment can exceed the budgets of many small businesses. On top of that, industries such as healthcare, IT, and others have such a rapid rate of advancement that equipment purchased one year is obsolete the next. To get the best equipment without a large cash outlay, businesses use equipment leasing agreements. By leasing equipment, businesses can get everything they need to optimize productivity and fill client orders. Leasing agreements have low monthly installments, and the leasing company typically handles repairs, maintenance, and even staff training, depending upon the type of equipment involved. Additionally, businesses can trade up to better equipment as new models become available. Leasing equipment is a cost-friendly alternative to purchasing, and can help small businesses stay within their budgets.
Financing your business on a small budget doesn’t prevent you from positioning your company for growth. There are a few financing solutions available to businesses that want to achieve rapid growth without using traditional loans. First, purchase order financing allows businesses to cover the cost of large or unexpected orders from clients. The financing is rolled into the invoice, so the balance is repaid when the client pays the invoice. Purchase order financing allows smaller businesses to level the playing field and take on accounts that would otherwise go to larger competitors. Second, consumer financing allows businesses to offer payment options to their clients so customer can make larger purchases with manageable payments. Consumer financing is easy to implement, and customers can get approved while they shop. Offering payment options to customers allows businesses to increase their bottom line and build up capital for growth. Both options are debt-free and are great for small businesses that want to grow.
Get the Right Financing for Your Business
Web Finance Direct offers a wide range of financing solutions for small businesses. Contact our offices today to start exploring your options.