당신을 위해 추천 된

당신을 위해 추천 된 Small businesses make up almost half of the private workforce in the United States—creating two out of every three new jobs. If you’re a small business owner

10.Equipment FinancingEquipment financing can help your business finance necessary equipment, including small items like...
23/02/2022

10.Equipment Financing
Equipment financing can help your business finance necessary equipment, including small items like electronics and large manufacturing machinery. Loan amounts depend on the cost of the equipment being financed. While lenders typically finance between 80% and 100% of the equipment costs, it’s typical for them to also require a down payment of about 15%. Terms range between three and 10 years.

9.Invoice FactoringBusinesses that use an invoicing system to bill other businesses may be eligible for invoice factorin...
23/02/2022

9.Invoice Factoring
Businesses that use an invoicing system to bill other businesses may be eligible for invoice factoring. With this type of business financing, your business sells its outstanding invoices to a factoring company. The factoring company then advances you a portion of the uncollected invoices (often 70% to 95%) and becomes responsible for collecting the outstanding invoices. After collection, the factoring company pays your business the remaining balance minus the factoring fees. Factor fees typically range from 0.50% to 5% for each month an invoice remains unpaid.

Invoice factoring is a handy financing method for startups and new businesses that don’t have a strong credit profile yet.

8.Merchant Cash AdvanceA merchant cash advance (MCA) can be an easy way to access short-term financing when your busines...
23/02/2022

8.Merchant Cash Advance
A merchant cash advance (MCA) can be an easy way to access short-term financing when your business needs money fast. Business owners give the lender—often a merchant services company—a portion of future sales receipts in return for a lump sum of cash. This amount plus fees are repaid from the business’ individual sales or through automatic clearing house (ACH) payments on a daily or weekly basis.

However, the streamlined loan process and less stringent qualification criteria can be expensive. MCAs typically charge a factor rate between 1.2 and 1.5. For example, if the MCA amount is $10,000 with a factor rate of 1.2, the total payback amount will be $12,000.

MCAs may be a good option for businesses that experience a high volume of sales and need to access cash quickly—without qualifying for a traditional business loan.

7.Working Capital LoanA working capital loan is short-term financing—typically a term loan, line of credit or invoice fa...
23/02/2022

7.Working Capital Loan
A working capital loan is short-term financing—typically a term loan, line of credit or invoice factoring—that can help businesses that need a cash infusion to cover day-to-day operating expenses such as payroll. Seasonal businesses, in particular, might benefit from a working capital loan during slow seasons when managing cash flow is a challenge.

Working capital loan terms will vary depending on the specific type of financing you apply for and the risk you pose as a borrower. In general, though, working capital loans can range from $2,000 to $5 million. As a rule of thumb, loans that feature easier-to-satisfy qualification criteria tend to come with higher interest rates and fees to offset the lender’s risk.

6.Term LoanBusiness term loans are another common type of business financing that’s repaid over a set period of time. Yo...
23/02/2022

6.Term Loan
Business term loans are another common type of business financing that’s repaid over a set period of time. You may be able to get a business term loan from a traditional bank or an online lender. Newer businesses typically have a better chance of approval through online lenders because they typically offer more flexible qualification requirements.

These loans typically have terms ranging up to 10 years, offer loan amounts up to around $500,000 and annual percentage rates (APRs) that start around 9%. Your business’ history, annual revenue and creditworthiness, including your personal credit, typically determine which loan terms you’ll have access to.

5.SBA LoanAn SBA loan is a type of financing that’s backed by the U.S. Small Business Administration (SBA), which guaran...
23/02/2022

5.SBA Loan
An SBA loan is a type of financing that’s backed by the U.S. Small Business Administration (SBA), which guarantees a portion of the money businesses borrow through these loan programs. Therefore, the risk is lower for the lender, and the lender may be willing to extend money to businesses that it might not otherwise approve for financing.

The interest rates on SBA loans can be competitive for well-qualified borrowers. What’s more, SBA loans typically range from $30,000 to $5 million and come with extended repayment terms—up to 25 years.

However, SBA loans also feature notoriously tedious qualification requirements. You should be prepared to jump through a lot of hoops and wait up to a few months to find out if you qualify. Having a personal credit score of at least 680 is recommended for these types of loans.

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