When you’re starting out a new business, you will need some capital. What if you do not have the money required to start a new business? Well, there are a variety of options to get your hands on some much-needed money.
If you’re still starting out and when you need money fast, one way to get some capital is via the SBA loan. The SBA (Small Business Administration) has a variety of loan options; the 504 and the 7(a) loan programs are just some of their more popular ones.
The premise of this type of loaning scheme is that the capital or the money that you will be borrowing will come from banks, but these institutions will be guaranteed that they will be paid without any problems. That guarantee is thanks to the SBA.
Now, it may seem good on the surface, but in reality, it is quite a hassle. You see, in order for you to get capital via the program, you will need to request for approval and that the time it takes for your request to be approved will take anywhere between 1-3 months! That is not ideal if you’re running a fresh new business as you will need money as fast as possible.
But, just when you thought that the SBA loan is the only option, that is actually far from the truth. In fact, there are other ways you can obtain your capital faster and easier. It is via alternative financing.
Now, what is alternative financing? Alternative financing is a no-frills approach to getting your cash advance. Alternative financing is getting money from non-traditional sources (like banks).
Why is this a more favorable approach than getting some SBA loans? Well, there are a variety of reasons why alternative financing is better:
1. It requires less paperwork
When you apply for an SBA loan, you will be required to pass some requirements such as a personal finance statement and a projected financial statement. Aside from that, you will be asked way too many questions and you’re required to sign a lot more paperwork.
Alternative financing, on the other hand, requires far less paperwork and you will get your cash advance no less than 24 hours since your application.
2. More Forgiving
SBA loans are relentless in that you will not be given any more cash advance if they see that you have a lot of credit. In Alternative Financing, you will be given money despite your negative credit history if the firm or the merchant who’s lending you money sees some potential in your business.
3. Fast and Reliable
SBA loans take a lot of time to get. Alternative Financing is hassle-free and you get your much-needed money in a much faster and more reliable way.
Growing your business is easier when you get your money from alternative financing. This is not to demean SBA loans; this is just to say that if you really need money fast, there are alternative means to get it.