As more people get vaccinated and cities across the country relax the restrictions placed on both businesses and customers, new entrepreneurs are emerging. While the economy is getting back on its feet, new businesses are seeking accessible financing solutions. Believe it or not, traditional loans are not on the top of the list.
New Businesses are Avoiding Debt
While traditional loans may have been the only path to financing in years past, new businesses do not want to get saddled with unnecessary debt. Additionally, many new businesses do not have the collateral or credit ratings to access traditional loans. Banks are similarly hesitant to approve loans for new and emerging businesses because entrepreneurs pose risks. Conversely, traditional lending channels are trying to manage loans that entrepreneurs defaulted on over the course of the pandemic. In short, emerging entrepreneurs are looking for viable debt-free financing alternatives.
Equipment Leasing for New Businesses
Every business needs equipment, whether it is office computers and software licenses, highly technical medical equipment, heavy industrial machinery, or anything else necessary to work efficiently. However, the initial cash outlay to purchase equipment can be very steep, with loans being extremely cost-prohibitive to new businesses. Equipment leasing offers a budget-friendly alternative that allows entrepreneurs to get the equipment they want without placing debt on the books. Equipment leasing provides the tools, machinery, vehicles, and software licenses businesses need at a low monthly price that features tax deductions, the option to purchase, and the ability to upgrade.
Working Capital for New Businesses
One of the biggest concerns for new business owners is working capital. Since loans can place a strain on working capital, entrepreneurs need a viable alternative that offers discretionary working capital to sustain and grow operations during those crucial early stages. A merchant cash advance provides working capital without placing debt on the balance sheet. Instead, the amount of the advance is repaid from a small percentage of sales receipts, giving new businesses the flexibility they need to stay successful.
Web Finance Direct provides accessible financing solutions to new businesses throughout the United States. If you want to learn more about our options for emerging entrepreneurs, contact Web Finance Direct today.