Business Cash Advance
A business cash advance is a purchase of a business's future credit card sales. By utilizing credit card factoring, business cash advance providers are able to provide small business owners with lump sums of cash, which will be repaid via a small percentage from their businesses' daily credit card sales.
The business cash advance is an excellent bank loan alternative because it is much easier to qualify for a business cash advance than a bank loan. Eligible small business owners have owned their businesses for at least six months, process a minimum of $5,000 in monthly credit card sales and have at least one year left on their business leases.
The business cash advance is completely unsecured and it is a much faster method of business financing. In fact, borrowers can receive funds in as little as seven days after approval and it only takes about 48 hours for a funding specialist to approve an application.
Credit Unions
Credit unions, according to experts, have been overlooked in the past, but as bank lending has dried up, more and more small business owners are looking to credit unions to meet their business financing needs. This apparently is a smart choice, because credit unions have the funds to give. "Many credit unions say they would lend out even more money if they could. But a 1998 federal law caps the amount of business loans credit unions can have at 12.25% of assets," writes Jilian Mincer in a Wall Street Journal Article.
Small business owners with good credit scores who meet pre-recession bank loan requirements may be able to secure the funds they need by working with a credit union.
"About 27% of the 8,147 credit unions in the U.S. offer business loans, according to the Credit Union National Association, a trade group based in Washington, D.C. The amount of business loans was up 18% last year to almost $33 billion from nearly $28 billion in 2007. The average loan size is about $215,000," writes Mincer.
Fundraisers
Remember when you joined the little league baseball team? The cost of uniforms, equipment, etc., was far more than what your parents or your teammates' parents could possibly afford. Knowing this, the coach gave the team boxes of chocolate bars to sell door to door, in order to raise the money to cover the costs.
Now, think back to elementary school. What did the school administration do when the time came to buy new books, purchase computers or finance renovations? They held school-wide assemblies and offered incentives such as toys and prizes for the students who sold the most magazine subscriptions.
The days of little league and elementary school are long gone. In fact, you graduated at the top of your class from business school and you are currently the owner of your own business. Still, you should never forget the valuable lessons that you learned as a child, some of which, like the concept of fundraising, can be applied to your career today.
As its name hints, fundraising is a great way to raise funds. You can do this by holding events, looking to friends and family, personal savings and combining various methods of business financing.
Blog about banking,lending and personal loans.
