If you run a small business, an eCommerce store, or a mid-sized company, there’s a big chance you’ll require funding at some point.

Whether you plan to grow your business, hire new staff, add a new location, invest in marketing, buy equipment and inventory, or cover other expenses, you can’t make do with low capital. When funds run low, you’ll have to turn to business financing experts for help.

This article will offer a closer look at the most popular financing options in Orlando, NJ, Pennsylvania, and Boston. Weigh the pros and cons, speak with your business advisor, and make a smart decision that pays off in the long run. Let’s begin!

1. Traditional Bank Loans

Traditional bank loans are the most widely known financing option in Orlando, NJ, Pennsylvania, and Boston. However, this doesn’t mean that this option is the most advantageous.

Bank loans are a slippery slope. For starters, borrowers have to submit extensive paperwork that can take weeks or often months to acquire. Once you submit your application, it may take double the time to hear back from the bank.

In most cases, borrowers get turned down for a loan as the acceptance rate is generally very low. After investing a lot of time, effort, and energy into the process, you’ll feel frustrated and disappointed upon rejection. Since businesses are forced to go back to square one, the process of securing funds from scratch can be demotivating.

If you don’t have established business credit, avoid traditional bank loans. Strict eligibility requirements, slow funding, and rejection because of bad credit/lack of established credit will leave a bitter taste in your mouth.

2. Private Business Loans

If you don’t have established business credit, a private business loan is your best bet. Private loans often get a bad rap because of fraudulent private money lenders. As a borrower, it’s your responsibility to find an experienced, qualified, trusted, and reputable business financing company. Once you do that, you’re in good hands.

When businesses partner with the right agency, they reap a lot of benefits. For starters, you’ll get expert advice. Experienced business loan agents have worked with hundreds of thousands of businesses, many of which are from the same industry as yours. As a result, private lenders are çapa Escort qualified to give excellent business financing advice.

They’ll understand your business, financing needs, and goals. Using this insight, they’ll determine the right loan amount, terms, and repayment schedule accordingly.

As one of the most trusted business loan companies in Orlando, NY, Pennsylvania, and Boston, Whitestone Fund provides business loans between $5,000 and $500,000. Borrowers can choose between a 6 to 18-month loan duration, and a weekly or daily repayment schedule. Whitestone Fund has a high acceptance rate of 95%. Borrowers are not burdened with origination or processing fees.

Recommended Read: How to Take Out a Small Business Loan without Collateral

3. Merchant Cash Advances

If you require urgent cash to fund time-sensitive business activities, a merchant cash advance should be your first consideration. Cash advances allow borrowers to access quick funds without any delays. If you can’t wait, a cash advance will help you get money in your bank account within 72 hours. You can make quick decisions and reap the benefits of flexible amounts and terms.

If your business has a short trading history, a cash advance is the most suitable and beneficial option for you. Build your credit history, enjoy competitive interest rates, and choose how you want to utilize the funds without interference. Whitestone Fund provides cash advances of up to $1,500,000 with a 6 to 36-month duration. You can make payments every week or every two weeks.

4. Requesting a Loan From Family/Friends

This option has become increasingly common in Orlando, NY, Pennsylvania, and Boston. Unfortunately, it’s the most hit-or-miss funding call you can make. In some cases, borrowing cash from your family/friends can work out fine. If both parties are responsible and the money is borrowed and returned on time, there should be no hassle.

However, things don’t always go according to plan. In most cases, one of the two parties fails to keep their word. Even if a contract is signed, the lender may change the terms at a later stage. Or perhaps the borrower fails to return the money on time. This can affect the borrower and lender and take a toll on the relationship. Loans from family/friends can result in a lawsuit.

5. Invoice Factoring

Invoice factoring is another way to access funds. If you require financing, you’ll sell your outstanding invoices to a third party (factoring company). They will give you a portion of the money upfront. The factoring company will then retrieve payments from your customers and give you the remaining balance with the factoring fee deducted.

While qualifying for funding isn’t all that difficult, factor fees can be very high. Moreover, the factoring company will directly contact your customers to retrieve invoices, which can open Pandora’s box for you. This option is only available for B2B invoices, which is another significant con.

6. Crowdfunding

Crowdfunding is the process of collecting small amounts of capital from several individuals to fund business activity. You can opt for debt crowdfunding (conventional repayments are made), equity crowdfunding (investors are sought), reward crowdfunding (a reward is provided to donors), and donation crowdfunding (no repayments are made).

To succeed with crowdfunding, you must stand out to donors and investors. This can be a little tricky to do. There are also additional fees involved, even if you’re requesting donations. Moreover, you can only raise money for your business through donation crowdfunding if you meet certain requirements.

At the end of the day, there’s no guarantee that your efforts will pay off. Crowdfunding can be difficult to get right. However, if you can manage to launch a viral campaign, you’ll be able to acquire the required funds and steer your business in the right direction.

About the Author

The author is a well-known business loan agent in Orlando FL affiliated with Whitestone Fund. As one of the leading business financing companies in NJ, Orlando, Pennsylvania, and Boston, the company provides business loans and merchant cash advances with flexible terms.