Different Types of Finance Available for Your Business

Businesses often need financing at many different stages of the game, and luckily, there are finance options available no matter where your business is currently at. Whether you’re looking to start a business and need the money to make it happen or you’ve found yourself in a tough spot and need some help to get through it, or anything in between, it’s important for you to know about the different options that are available to you so that you can choose the absolute best ones to meet your specific needs and goals.

Online Lending

Online lending has become very popular in recent years, especially for new small businesses. As such, many good online lending companies have popped up in recent years, such as Kabbage. Online lending has the benefit of typically providing businesses with money much more quickly than traditional bank loans since applications can be processed online in as little as one hour. While mostly newer businesses tend to favor online lending, loans are available for businesses at all stages of the game, so no matter what your needs, definitely look into this option to see if it could be right for you.

Grants

In some instances, your business may be eligible to receive a grant. Grants are particularly common in scientific and research fields. Government grants are awarded to deserving businesses or prospective businesses that agree to perform federal research tasks. If you think that your business has a valuable service to provide, read up on grants in your field or industry to see what’s available and then start filling out those applications. However, if you are offered a grant, have your attorney look over the agreement closely so that you’ll know exactly what you’re getting into and what your responsibilities are.

Invoice Advances

If your business is already established but has hit a rough patch, then an invoice advance may be for you. Invoice advancing allows you to receive money for billed invoices upfront, which you can pay back later after the bill has been paid. It’s basically a way to get money that is already coming to you but to get it quickly, when you need it most. There are interest rates involved, however, so make sure you really need the money and that it’s worth the additional cost to you before you go this route.

Business Credit Cards

Finally, you may want to consider opening up a business credit card as a financing option. This can be done when you’re starting a business and need help getting it off the ground or later on when your business is running but you need a little help. While there are, of course, interest rates involved, monthly payments on business credit cards tend to be quite low, which can be helpful when you’re having trouble or are just getting started.

As you can see, there are financing options available, so research these and other opportunities to see what will work best for you.

Strategy & Equity