The old saying that you have to spend money to make money rings true even in contemporary times, especially in the context of business. To make a business flourish, you have to invest in inventory, equipment, advertisement, and property. Companies often find themselves in immediate need of cash, especially when an emergency strikes. They take out small loans to satisfy operational costs and to combat the crisis, and once their business starts growing, they return it on agreed terms. Banks are always ready to step in, but they require you to meet specific requirements before they hand out cash to you.
Taking out a loan has become a relatively straightforward process as there are many options available now. Loan providers are a dime a dozen these days, but it choosing the right loan is tricky. With so many kinds of loans, business owners often find themselves at a loss.
If you require cash to support your growing business, the following list will surely help you:
Funding Circle
The range for a funding circle loan is $25,000 to $50,000, with a repaying limit of six months to 5 years. They are a peer to peer lender, which means it connects you to an investor rather than lending money directly to you. Certified investors who invest in small businesses of America fund through funding circle. It gives a choice to investors either to set up an automatic investing to fund loans as per specific criteria or to loan individually from an online marketplace. A few of the requirements of loan applications are rigid, but they offer some of the lowest rates. It is one of the few lenders who let you pay monthly rather than weekly or daily. Businesses who prefer a peer to peer lending can take advantage of the funding circle.
Unsecured Business Loans
Loans generally require an applicant to present something as collateral, but an unsecured business loan is one that does not demand any personal or business asset. However, it requires a good credit rating with impressive financial history and forecast of positive cash flow. No security business loans work for those businesses who have seen a steady growth but do not possess any personal asset or a business asset. Their interest rate is higher than other loan options owing to no security from borrowers. The loan period is comparatively shorter than secured loans, and the percentage of interest depends on the loan period. Terms of unsecured loans state that the borrower will repay the loan in equal installments until the loan is fully paid.
OnDeck Capital
OnDeck capital takes an edge over others as it offers loans to borrowers with credit scores as low as 500. They provide money on the same day, with a slightly higher interest rate. They offer fixed-term loans as well as lines of credit. They charge a 2.5% to 4% of the origination fee on your first loan and their fee decreases for further loans. OnDeck offers loans from $5000 to $50,000. They offer lower rates to repeat customers, so if you anticipate taking loans in the future, OnDeck capital is an excellent option for you.
Kabbage
Kabbage’s strong point is its automated application, which requires you to connect it with your bank account. They do not demand credit score or tax documents and assess your application based on your bank account. Kabbage offers loans only in the form of a line of credit and gives you a choice to either take the whole amount at once or a lower amount at intervals. The entire process is easy, and you can do it through a smartphone. Kabbage does not have any minimum limit; however, at maximum, their loans are available up to $250,000. The simple process and immediate lending of cash make them a preferred option for businesses who are in urgent need of money.
SmartBiz
Small Business administration, commonly known as SBA, backs SmartBiz loans, so they have lower interest rates. The way of providing the loan is a little different in SmartBiz as they deliver your application to several lenders who match your options and then process it further. Their range of loan offers is from $30,000 to $5 million, with repayment time from 10 to 25 years. SmartBiz applications take much longer to process, but their lower interest rate makes them an attractive option for businesses.
Conclusion
Loans are inevitable for any business; however, a wise business owner always conducts proper research and weighs his pros and cons before zeroing down on any loan. Choosing the right type of loan could be a difficult choice, so one should consider what kind of loan is appropriate for their unique circumstances. Jamaican Business Loans offer just as much; you have the option to see types of loans you need for the business you offer. With so many types of business loans, there is no one-size-fits-all answer.
In today’s internet savvy world, online loan providers have become very convenient. Lenders offer you access to their online application and process it in no time. With appropriate preparation and smart financial consideration, your chances of getting a nod from lenders are relatively high.
