Where To Look For Small Business Funding

Small businesses are the backbone of the U.S. economy, but it can often be difficult to get funding. Small businesses are less likely to find funding from lenders, so you need to be creative. This article is going to go over some of the many ways that you can pursue small business funding.

Traditional Lending Options

First of all, most small business funding most often comes from common sources.  These are more viable if your business has been built up, so be mindful of the state of your business if you pursue this path.

Bank Loan. Receiving a bank loan is becoming more difficult. Strong collateral and good credit can help secure a traditional bank loan.

SBA Loans. Small Business Association loans are growing in popularity in today’s market. If you meet the criteria this can be a great option.

Nonprofit Microloans. Nonprofit microloans, such as Kiva, get used  for small businesses in developing countries.

Self/Private Funding

These sources of funding can be very useful, but generally are only available in certain circumstances. In general, these are viable but not sustainable.

Family and Friends. Sometimes, support begins at home. If your family believes in your business, they can be financial backers. Many looking for small business funding use this as a start.

Business Lines of Credit. If you have good personal credit (around a score of 700) this could be an option for you. Granted, many business owners looking for funding may have some credit trouble.

Prize Money or Contests. If you’ve got a great business idea and time to enter, this could be for you. Contest exist where the prize money goes towards funding your business.  In addition, this can also serve as advertising and promotion for your new business.

Personal Savings or Assets.  Selling off your assets or using your savings can provide quick cash. Just make sure you don’t risk too much to get your business up and running.

Government Funding Options

Government Small Business Grants. Grants are industry-specific generally. These also have guidelines on how you use your funds, as well as outcomes that you need to achieve as a result of the lending.

National Association for the Self-Employed. NASE offers grants and scholarships for self-employed business owners. However, like a grant, you are responsible for meeting certain goals grant.

Local Government. Each state and local government has a branch which assists with grants and loans.

National Institute of Health Funding. Funding is available through NIHF. However, to qualify, your business will need to conduct certain types of research and meet certain criteria.

Alternative Funding

These off-beat sources are becoming more popular as funding is harder to find. Here are some of the many options.

Crowd Funding. A growing lending method in the financial market is crowdfunding. Crowdfunding websites allow you to create a personal web page. These pages explain the goal funding will help achieve.

Venture Capital. There are strict criteria involved with venture capital.These may block off many businesses from this form of lending. At the same time, it’s still a possibility.

Industry-Specific Funding. Certain industries have sources of funding for businesses in their category. This is a great way of tapping into your local resources, as well as getting your community involved.

Local Agreement. Small businesses and nonprofits may be willing to work with you. These can help increase patronage of your business, in turn generating extra cash flow. This is especially applicable to businesses selling goods.

Franchising. Franchising your brand is a great way to raise funds for your business. Businesses that are is thriving but need extra management and capital to expand are good candidates. At the same time, this isn’t for everyone.

Community Agreements.  Try reaching out to small businesses or nonprofits in the community. These increase your presence in the community and the market, while increasing foot traffic. As a result, you could develop new customers. You might need to do some volunteering as a part of the agreement.

Merchant Cash Advances For Small Business Funding

Another one of the more popular options out there are merchant cash advances, such as those provided by eBusiness Funding. Our aim is to support businesses that may struggle with traditional lenders. To do this, we provide merchant cash advances that are accessible to a wider spread of businesses than bank loans or private lenders. 95% of businesses that meet our simple requirements qualify for funding. All you need is to be in business for at least six months, with over $10,000 in monthly revenue. With us, it’s not about past credit history or collateral, but about your business’s potential.

It’s important to us that you use the funds we offer in the most helpful way possible, so we put no limits on your spending. Payroll, expansion, repairs, spend on what you need! We also get you your funds fast, sometimes as soon as 72 hours after you first apply. Repayment is also simple. Rather than large monthly payments, we take an established percentage of your future sales. This percentage stays the same, so if business slows down, you pay less.

Sounds good? If you’re ready to begin, all you need to do to start is fill out this simple contact form. We’ll be waiting, and are looking forward to helping your business get the funding support it needs.

Funding a New Business? This is how to get started!?

A top of mind concern for most small business owners is cash flow. Securing funds for daily operations is essential to a business in its infancy stage.  Funding a new business can be overwhelming because of the possibility of unplanned expenditures. Fortunately, there are a lot of funding sources available to chose from.

This post will cover a few key questions all new business owners must answer when it comes to funding a new business:

• Why do I need funding?
• What type of risk am I willing to take on?
• What is my business credit?
• How fast do I need the funding?

Answering these questions requires a deeper view of your business’s essential needs before deciding on the best funding source.

Why do I need funding?

Though the answer may seem obvious, financial providers require a plan of how their funds will be used. You’ll be surprised to hear the increasing number of businesses lacking a clear plan. While presenting this document will be easy for most, some will have to develop a plan. Consider this an opportunity to conduct a holistic review of your business model and its needs. You may find that some of the funds you’re requesting might be better allocated in other ventures.

For example, have you had your eye on a new truck or office space? Maybe you’re looking for payroll funds while you expand your business? If this sounds like you, don’t feel alone. Many new businesses struggle with unsteady cash flow and scramble to make payroll. This is such a prevalent problem that there are funding options tailored to overcome these scenarios.

What type of risk am I willing to take on?

When it comes to funding a new business, entrepreneurs often risk their livelihood and are hesitant to collateralize any more assets.  While many lenders are sympathetic to this concern, their standard requirements often demand collateral. Often times, traditional lending requirements are so rigid that funding is near impossible to secure.

Deciding to officially request financial help isn’t easy, but it’s only the beginning. Most lenders have a “risk portfolio” that guides their approval process. Declined applications aren’t uncommon and should not be taken personally. Lenders might even present you with an alternative amount because your business exceeds their risk portfolio. If you find yourself in such a scenario, don’t panic! Fortunately, their are alternative lenders willing to help declined businesses.

What is my business credit?

Setting up your business’s credit history is imperative to its growth. We highly recommend that you start a business credit history as soon as possible. It’s important to note that your business credit history and personal credit history should be separate.

How fast do I need the funding?

Every funding source is different when it comes to the amount of time they can get you the cash. At eBusiness, we can get you the cash you need just three days after you qualify. This means you can take advantage of opportunities, immediately.

So what is next?

Funding a new business does not have to be complicated. There are many options out there but you have to know what you are looking for. And we can help you find the right one for you!

Ready To Get Started?

Contact eBusiness Funding now at 305-985-6593 or complete the contact form on this page now.

I Need A Merchant Cash Loan, Where Can I Get One?

People often ask us, “why would I use a merchant cash loan”? Our clients know they need funding to either grow their business, maintain their daily operations, or pay off debt. This is not uncommon for small businesses to need funding to grow or operate their business. Selecting the right source of funding for your business model is important to be able to sustain or grow your model. Selecting the wrong funding source can be harmful to your business overall. We can help you determine the right merchant cash loan for you.

There Are Several Reasons To Use A Merchant Cash Loan.

Timing

We can get you cash fast! Our application process is simple. We have made it easy for you to apply online and get the funding you need. We will then review your application and respond within 24 hours. From the time you apply, are approved, to money in your bank account is generally just three days. You can start using the cash immediately after.

Compare this to a bank loan which can takes weeks or months.

Simple Qualification

We only have a few requirements that you must meet to be considered for qualification.

• You have been operating as a business for at least six months
• Generate over $10,000 in monthly revenue

High Acceptance Rate

Our application process has over a 90% acceptance rate for those who meet our minimum requirements. A traditional bank loan application process has approximately a 20% acceptance rate.

Use The Funds The Way You Want

A traditional lender will often require a business plan to understand how you plan to utilize the funding provided. There are rules for things that they can lend for and things that they can’t. For example, a bank will typically not finance payroll funding but a merchant cash loan can be used for payroll financing. At eBusiness, we will not ask for a business plan that details where your business wants to be in five years. A bank will ask for such a plan. We believe that you know your business model and as an owner you want to see your business thrive. As a merchant cash advance business we want to see you succeed.

The Risks With A Merchant Cash Loan

We don’t want to say that a merchant cash loan is for everyone. Just like any lending method there are pros and cons and risks associated. Some of the risks include:

Less Cash Flow

We take a percentage of your daily credit card sales until the amount of the advance including fees has been paid off. As a business owner, you must be prepared to run your business on less incoming cash until the advance is paid off. Compare this to a general bank loan that you are paying on a monthly basis and have all month to plan for.

An Endless Cycle

You have to be careful that your business model is right for a merchant cash loan. If you are in the business with slower sales that will not be able to payback the advance quickly, the window is much shorter than a bank loan to pay it back. Customers can take out multiple cash advances, but they must be mindful of paying them back and not fall into a trap of further debt.

Getting Started

So if you think that a merchant cash loan could be right for you, give us a call today! We want to talk to you about our Merchant Cash Advance product.

Best Bank Business Loan Alternatives

It used to be getting a bank business loan was simple. All you had to do was visit your local branch. You would ask what type of business loans they were offering. You would ask about their rates. And you may even ask what specials they were promoting that month. There was really only one place to go and that was the bank. If you were lucky there would be two different banks in your town so the rates would be competitive.

But today’s world is completely different. Times have certainly changed. Both physically and digitally. The current state of the lending market is evolving to meet the needs of the modern day consumer. You can apply for a loan online and never have to set foot in a bank. Not only that but you also have a wider variety of alternatives to a traditional bank business loan.

What are the alternatives to bank business loans?

Crowdfunding

Peer to peer lending is on the rise these days. Businesses are looking to the average consumer to help grow their business. Crowdfunding focuses on pooling the collective funds from a variety of different parties. This is primarily completed through digital platforms including social media.

Businesses will leverage their own personal networks to begin with. The sharing will continue through their friends and family. There are a variety of crowdfunding options to offer incentives to people to help fund your campaign.

• Donation

• A donation with no expectation of return. This funding is often typically seen for non-profits. It is also often used by disaster relief groups. But it can also be used for businesses.

• Rewards

• The reward option that typically offers lenders early access to a product, a discount or free product. Businesses who raise funds this way are not offering equity into the company.

• Equity

• This method allows lenders to become part-owners of the business.

As a business owner, it is important to know what type of crowdfunding you are doing. You also have to be transparent to your lenders. Leading them to believe they were getting equity when they were donating can lead to lawsuits down the line.

Business Credit Cards

A business credit card can be a powerful tool to empower your employees to make purchasing decisions. It also gives you quick access to cash to be able to buy necessary supplies. But having a physical card that your employees are responsible for can be a risk. Fraudsters, whether online or in-person, are always looking for unsuspecting credit card holders.

Merchant Cash Advance

A Merchant Cash Advance is an alternative to a bank business loan. Though similar to a bank business loan, a Merchant Cash Advance does not have the same strict regulatory standards. At eBusiness Funding we only require that your business does at least $10,000 a month in revenue and has been in operation for 6 months or longer.

How Does A Merchant Cash Advance Work?

1. Applicants apply through our simple form on this page.
2. We review the application and respond within 24 hours letting you know if you have been approved.
3. If you are approved, you can receive between $5,000 to $500,000 in three days or less.
4. You can then start using the funds to meet your business needs.
5. In exchange for the funds, we will take a fixed percentage of your business’ daily sales (Monday-Friday).
6. This process is continued until the advance and fees are completely paid off.

We believe that a Merchant Cash Advance is a great alternative to a bank business loan. As a business, understanding what is going to be the best option for you is important. If you feel a cash advance could be right for your business’ loan needs, contact us!

Getting Started

Call eBusiness Funding at 305-985-6604 or complete the contact form on this page now!

Need Unsecured Business Funding? Learn This Trick

Have you been thinking about applying for a business loan? Are you overwhelmed by all the options that are currently on the market? Whether you are looking for traditional funding or alternative funding one thing you must know is the difference between secured and unsecured business funding.

What Is The Difference Between A Secured And Unsecured Loan?

Secured business funding is “secured” through the holding of collateral against the loan. That means that when you sign a secured loan with a bank, you will put up collateral. This can be business collateral such as a physical building or equipment. Or it can be a personal asset like your home or boat. If you are to default on the loan, the bank will take control of that asset. Sometimes the asset is worth more than the amount owed on the loan but more often than not the bank will take a loss.

This is why unsecured business funding is a much larger risk to a lender. Unsecured business funding has no collateral that is held against the funding source whether it be a loan or cash advance. It is much riskier for the lender which it often comes with a higher interest rate and extremely high standards to be approved.

Unlike the impossible standards of a financial institution, eBusiness Funding offers our Merchant Cash Advance and Business Cash Advance product through a simple application process. We have a 95% approval rate for those who meet our minimum requirements.

The Requirements:

• Have been in business for a minimum of six months
• Do $10,000 in monthly revenue

A Merchant Cash Advance is a great option for businesses that need working capital quickly. This is one of the many alternative lending options on the market today.

How Are We Different From Traditional Unsecured Business Funding?

• Simple approval process
  • If you meet our minimum requirements we can get you approved in just 24 hours.
• Our waiting period is days, not weeks or months!
  • Unlike the bank application process which can take weeks to secure funding, through our process, we can get you the cash you need in just three short days!
• No restrictions on how the funds can be spent.
  • If you are approved for a bank loan, there will be restrictions on how you can use the money.
  • With our cash advance, we are more concerned that you are growing your business in the way that you see fit.
• High approval rate
  • A bank loan’s approval rate is one in five applicants.
  • We approve over 90% of those who meet our minimum requirements. That is nine out of ten.

How Does It Work?

Within just three days we can get you between $5,000 and $500,000, depending on what you qualify for based on your business history and monthly revenue. After you are approved, we will deposit the cash directly into your bank account. This way you can start using it immediately to help grow your business.

With a Merchant Cash Advance, we do not require a plan of how you will utilize the funding. You understand your business model better than we do. We trust that. We want to see you succeed, that is why you can utilize the funds as you see fit.

Our unsecured business funding does not have a fixed monthly payment. When after you are approved and funded, your business will return a fixed percentage of your daily sales as payment. This draw is completed daily (Monday – Friday) until the amount advanced is paid off. Think about it this way, we don’t make money until you get paid. Because our process is automated, you do not have to worry about forgetting to pay us or receiving a late fee.

Get Started Free

So if you are looking for unsecured business funding to help grow your business, an eBusiness Merchant Cash Advance may be the product for you. Contact us today to explore how we can help you meet your business goals.

There is no fee to apply and it only takes a few minutes.

Call eBusiness at 305-985-6604 or Complete the contact form on this page now.

How Account Receivable Financing Works

Have you considered utilizing account receivable financing to help grow your business? Going through the process of applying for funding is never easy. The world we now live in is full of regulation for the traditional lenders such as banks. When you ask them for funding you better be prepared for a million and one questions.

What a business needs to apply for a bank loan:

• Good Credit
  • A financial institution is going to look at both the business’ credit and the borrower’s credit history.
  • It is recommended that you know both of these scores prior to applying for a bank loan.
• Personal Assets to put up for Collateral
  • A secured loan is going to require collateral to ensure the bank’s stake in your business.
  • Personal collateral can be used if the business is just starting out and does not have many assets.
• A Well Thought Out Business Plan
  • The banks want to see where you envision your company in three to five years.
  • Then they want to know how you plan to grow to get there.
  • They also want to ensure they are going to get a return on their money.
• Financial Statements from the Last Few Years
  • Banks want to see the overall health of your business.
  • They are going to be looking to approve someone for a loan who has been in business for at least two years.

When a business does not meet one or more of the above requirements for a bank loan, they are typically turned down. That is not always the case but only one in five businesses are approved for a business loan in today’s regulated environment. That means 80% of businesses are denied.

Down To Business – How It Works

For this reason, account receivable financing is becoming more and more popular.  Another name for account receivable financing is account receivable factoring. This type of financing allows a business to get a quick source of cash flow in exchange for the opportunity to get paid back by your original client. A different way to think about it is a business will sell their outstanding unpaid invoices to a “factoring” firm at a discount. The firm will give your business cash. An invoice that is newer will receive a larger amount of cash than an invoice that has been unpaid for longer. Your client’s will then pay the factor (without realizing it).

The price of receiving the cash immediately is the discount to which you sell the contract. This type of a deal will not give you the full cash value of your invoice, as the firm is also looking to make money. Typically, you should expect to give up about 20-25% of the value.  This will be determined by a number of different factors such as the age of the invoice.  The risk on behalf of the factor is that if your client’s don’t pay, they will not make any money. This assumed risk is factored into the purchase price.

Because you lose about 25% of the value of your invoices, many businesses choose to go with an alternative to account receivable financing. One alternative is a Merchant Cash Advance which allows you to keep your invoices at full value but pay a percentage of your daily credit card transactions instead. This option is great for businesses that are looking to get cash quickly but not lose the value of the contracts.

Keep Your Money

Unlike account receivable financing, we don’t get paid until you get paid from your clients. We aren’t looking to short change you on the hard work you do for your customers. We want to help you grow your business. This is why we have made it simple to apply and can get you approved in just 24 hours!

Getting Started

So are you ready to continue servicing your clients but keep the full value of your invoices? We are ready to help!

Call eBusiness Funding at 305-985-6604 or Complete the contact form on this page

A Better Business Credit Line

People often ask, what is a business credit line? A business credit line allows a business to have access to funding to help supplement cash flow or expand the business. There are several different options out there for a business credit line so you have to do your research. Choosing the right one for you can be difficult.

Business Credit Line Options

• Business Equity Line of Credit

• An equity business credit line can be given with business real estate as collateral.
• This is a smaller amount of funding, typically up to $500,000.

• Business Line of Credit

• A business line of credit offers a much larger line of credit to draw from.
• Collateral is also flexible. Some lines of credit do not require collateral.
• There is an SBA option for a business line of credit up to a certain value.

• Business Credit Card

• You can use your credit card at any time without any questions asked about how you are utilizing the funds.
• You have to be careful how much of your credit line you as it can affect your credit score. The recommended amount is that you try and only use 30% of your credit limit.

A business line of credit is not the only one way to look at having access to immediate funds. Another alternative is a Merchant Cash Advance. This type of funding gets you access to cash quickly, often in just three days.

What is a Merchant Cash Advance?

A Merchant Cash Advance offers businesses the ability to get cash in their hands quickly. Once a business has applied, we can get them approved in just 24 hours. After we know what you have been approved for, we can get the cash into your account in just three days. Our minimum requirements make it easy for you to get funding without the hassle of going through a bank.

With a bank, you are going to need to meet regulatory and compliance standards that have recently been introduced to the financial services industry. Banks are looking for transparency from their borrowers. They will request full access to your business’ financial history. To be less of a risk to a bank, you will need to have been in business for at least two years. They will also look at the type of industry you are in. The steadiness of your income and your profitability statements will also be analyzed. The bank will pull a credit report on both you and your business and analyze your debts. The financial services industry is going to do their complete due diligence to hedge their risk. This due diligence can cause small businesses a major headache. Especially if you are eventually turned down.

A Bank’s Requirements

• A complete business plan
• Collateral
• Credit history for both the owner and the business
• Financial statements from the last few years
• At least two years in business

Our Requirements

• Six months in business
• $10,000 a month in sales revenue

These lists make it simple to us! Why put yourself through the headache of getting turned down by a bank if you don’t meet their complete list of requirements? As long as you hit our two requirements, you have a 95% chance of getting approved with us.

Want to know the best part for the businesses who use our Merchant Cash Advance? We don’t look at your business’ short history as a negative. We also understand that starting a new business can be harmful to your credit score. We care about where your business has the potential to go, instead of looking at some of the mistakes you may have made while learning to operate your business.

Get Started Now

So what are you waiting for? Request your business credit line alternative today and start growing your business later this week. Call eBusiness Funding at 305-985-6604 or complete the contact form on this page.