As every business owner knows, securing a small
business loan is one of the most important and most
difficult challenges one will face in the course
of business - including franchises.
Even with an exemplary personal and business
credit report and low debt-to-equity ratio, no
one is guaranteed approval. Even established
businesses run at a high risk of being unable to
get a loan in a time of need or when looking to
expand or renovate.
Unsecured
Business Capital
Even when approved, the borrower might easily
find them self facing high interest payments and
penalties for late payments which can hurt credit
scores and make the entire process more
difficult next time. Having insufficient
business collateral may lead a borrower to put
up his or her own personal assets, and many have
lost not only their businesses, but also
their homes.
One alternative is business capital advance -
but only after you have an established cash flow
to allow it - usually $3000 or more monthly.
This solution is not a loan at all. With
business capital advance, you actually sell
another company future sales at a discount.
It's also called "factoring." Using your
accounts receivables (most often Credit card
sales) you can get working capital immediately -
and they will deduct a certain amount from your
incoming credit card deposit.
There is no collateral or personal guarantees,
so in some situations, it's ideal. These
small
business loan alternatives should be
explored one by one.
