You are a small business owner who needs some money. You start looking online for different lending options, but you get overwhelmed with what is available. Look no further! This post will help you differentiate different types of funding for small businesses so you can make an educated decision about what type of funding you need.
Take note. There are many funding companies out there, but they may offer different solutions. They may also offer similar solutions, named different things. Not all funding is created equal! There are specific types of funding for small businesses for different business needs. Determination of what type of solution you need is based on a few things, including but not limited to:
Determining the above will help you find a solution that will fit you and your business’s unique needs.
Merchant Cash Advance – A merchant cash advance (MCA) may have a few different names, but the premise is the same. A funding company will give you a lump sum of money in exchange for a portion of your company’s future sales. An MCA is flexible and gives you the opportunity to make daily or weekly repayments based directly on how well your business is doing.
Line of Credit – A business line of credit is a great option for short-term needs. This type of funding gives you access to a set amount of money, but you do not need to take it all at once. You take only what you need, pay back what you use, and have access to the rest of the money as you need it, without needing to re-apply.
Term Loan – A term loan is like a traditional loan that you may be more familiar with such as a car loan, student loan, personal loan, etc. A term loan can be short or long-term, depending on what each funding company offers. Term loans typically involve giving you access to a lump sum of funding that must be repaid in full, regardless of how much you use for your business.
Of course, there are other types of funding for small businesses available, but those are the most common types you will find when looking for funding for your small business. You can also reach out to a funding company and speak to a funding advisor to see what the best option is for you and your needs.
Funding advisors are dedicated individuals who help you make the right choice for you and your business. When speaking with an advisor, they want to get to know you, your business, and your needs. At Coast Funding, we specialize in creating a truly unique, personalized experience for our clients.
Are you interested in funding for your small business? Contact one of our funding advisors today!
This content is for educational or informational purposes only and should not be taken as legal or financial advice. The information in this content does not necessarily reflect the views of Coast Funding Services LLC or its partners.