Small Business Financial Support—A Guide

29 Jan 2021

Your business needs money to succeed! But getting a hefty amount when you’re just starting is not an easy task. And it is quite evident from the report of SmallBizGenius, which says, a quarter of small businesses begin with no financing whatsoever.

And that’s the reason, 1 in 12 businesses shut down permanently every year. (Source: LendEdu)

So how can you avoid being part of this unfortunate statistic? The simple answer is - awareness. Be aware of your strength and apply for a financial loan in domains that align with your strengths.

Here’s a thorough breakdown of all the financial programs that can boost your business…

Advantages Of Business Financing

1. Boosts Sales

Introducing financing options in the first step of the customer acquisition journey gives extra credibility to your brand. Hence, high conversions and sales can be expected.

2. Grabbing Time-Sensitive Opportunities

“Time & tide wait for none”, and this is, even more true in the case of a business. But most of the time you’ll need capital to grab that opportunity. And instant cash availability at the right time can open new opportunities for your business. 

Even business loans with bad credit scores are possible! 

3. Maintaining Cash-Flow

Some financing options are pretty easy to get approved. But, they also bring a high-interest rate that you need to manage. And sometimes, due to dwindling sales, you might not be able to meet the repayment deadline. Hence, going for a quick cash injection solution can be one of the best decisions.

4. Marketing

Your business needs eyeballs to acquire leads. And a good marketing plan makes it feasible for you. But you need capital to start off your campaign. And a small business loan will be just about right for it.

5. For Taking The First Step

What if you just had an awesome idea and you need to set the base to get started! A business loan will help you take your first step towards your dream.

But all of these requirements cannot be fulfilled by one particular type of financing solution. So here are 5 types of small business loans & cash injection solutions, that can be suitable for your precise need:

5 Best Business Financing Solutions

Best Business Financing Solutions

1. Business Term Loans

Business term loans can be issued for ‘one-off’ assets. Eg: Machine, Land, Equipment, etc.

The repayment can be done within 1 to 5 years depending on the principal amount. All you need to do is find the right working capital support provider. Financial firms like Greenpoint Capital can help you find the best deal with the best term, rate, and repayment schedule for your needs.

Pros:

  1. Low-interest rate
  2. Suitable for various businesses

2. Merchant Cash Advance

This is the best option for all the credit card transaction-based businesses like retail stores and restaurants.

Unlike regular loans, merchant cash advance brings the ease of instant cash injection. This financial solution is based on credit card transactions/sales per month. The lending institution analyses the receipts by extracting all the details from the credit card terminal provider.

Based on your regular/monthly transactions, the amount is decided. An agreement is drawn for the repayment purpose.

Pros:

  1. Instant access to funds
  2. No collateral or high- credit score required

3. SBA Loan

Facilitated by Small Business Administration (SBA), this financial option is more suitable for businesses that are ready for collateral and need a good interest rate. 

An SBA acts as a guarantor and facilitates financial support to a business. Hence, a lending institution can go ahead with the transaction.

An SBA can guarantee up to 85 percentage of the loaned amount. 

Pros:

  1. Lowest down payment
  2. Prolonged repayment term

4. Equipment Financing

If your business needs heavy machinery to set off, then equipment financing is the most suited option. This solution offers up to 100% financing for machines and pieces of equipment. 

The only drawback is that upon failure of repayment, the lending institution can seize your product.

Pros:

  1. Minimal paperwork
  2. Equipment as collateral

5. Short-Term Business Loans

One of the best financing solutions for you if you’re looking for balancing the cash-flow or paying-off a high-interest rate financial loan.

Other short-term needs like paying off expensive debt, providing extra cash to address an unexpected challenge, or taking advantage of a time-sensitive opportunity can be managed with this.

Pros:

  1. Structured repayment
  2. Not credit score dependent

Greenpoint Capital with its 15 years of combined experience gives you the feasibility of applying for a business loan in 4 easy steps. 

  1. Apply - Fill out one-page application
  2. Connect - An advisor will contact you within 24 hours
  3. Choose - Choose the best option
  4. Get Funded - Move forward with the funds

Partnering with the right lenders for your business will be as easy as it gets. After all, that’s what we, at Greenpoint Capital specialize in! 

Give a call to (866) 714-7336 for any kind of business loan query.