What Options Exist for Business Loans for a New Business?

KCF Admin

8 years ago

What Options Exist for Business Loans for a New Business?

Starting your new business should be the most exciting time of your life. But the day will come when your small startup is ready to expand. Maybe you are looking to acquire a new business or looking to add on an addition to your office space. This will be the day you start your online search for funding sources. Common search terms include business loans for a new business, new business loans, and small business funding. There are many other common search terms that can lead you on the path to success and we can help you find the right option for you.

Business Loans for a New Business

TRADITIONAL FUNDING SOURCES

Bank Loans
- If your business is new, this can be a much more difficult option to receive. Banks, in the modern world, are highly regulated and have strict standards. Banks are not willing to except businesses who are typically less than two years old. They are also looking for businesses who have stellar credit. If you haven’t started your business on the path to earning its’ own credit score, there are simple steps that you should take. You don’t want your credit score to be the only one in the equation forever.
- If you are able to receive a bank loan, this is a great option for low-interest funding.
Business Credit Cards
- Though not a traditional loan, it is a funding source that many businesses choose to utilize. You can have access to funding quickly and up to the line of credit, you are approved for.
- But this option is not without its risks. If you plan on handing out cards to your employees, make sure you set specific standards and rules around the usage of the card. You would be shocked by how many employees go rogue with an employer’s commercial card.

ALTERNATIVE FUNDING SOURCES

If you are looking for business loans for a new business, alternative funding providers may be your best option. These guys can get you the funds you need fast! Alternative funding providers are popping up all over the world thanks to the FinTech revolution. Although some have been around much longer than others. As a business, you should know all of your options before making any decisions.

Crowdfunding
- There are many different types of crowdfunding that you can utilize. These options include:
  - Friends and Family
  - Local community Campaigns
  - Online Campaigns
- When it comes to your friends and family, this is a less risky option because you know the people you are borrowing from. They are also more likely to loan you money while asking for little in return.
- The public is a great option to utilize; however, they are more likely than your friends and family to want something in return. This could be equity or a product when you get to that point. Make sure you make it very clear before anyone gives any money to your campaign what they will be receiving.
Merchant Cash Advance
- Unlike a loan, a cash advance is not tied to the regulation that a traditional bank is. If you are looking for business loans for a new business, this can be a great option because you can get your funding quickly. Cash advance providers can get you the cash you need in as little as three days and that length of time is simply due to the processing technology of a bank account. Trust us, we would love to get you started with your cash even faster if we could.

With so many options to choose from, it can be a real challenge to get started! Let us help!

Whether you are looking for funding fast or a long-term solution, we have the knowledge of the industry to help you find the right option for your needs.