Alternative Small Business Loan Options
If you are a small business owner, there are times when you need a loan that does not involve a great deal of collateral or hassle. Thankfully, there are quite a few options for small business loans available today that provide you with an alternative source of funds. This is can be a lifesaver if you are faced with mounting expenses or tying to engage in an effective product launch. If you do not yet have any collateral to put up for a loan, look at these attractive options to help you get the cash that you need.
Loans Backed by the Small Business Administration
America has long prided itself on providing loan guarantees to small businesses. While putting up collateral will help your case with this type of loan, there are alternatives available to you. Unlike many small business loans, you can use yourself as the guarantee for this type of loan, meaning that you will be the one responsible for paying back the money in the event that your business cannot. If you can show that you have a positive cash flow and relatively low debt ratio, the Small Business Administration will guarantee up to 75 percent of the loan against loss. This will attract lenders and they will be more likely to approve you.
Financing from Peers
There are many like-minded individuals that appreciate the entrepreneurial spirit and are willing to provide small business loans to qualified individuals. This involves using a network of private individuals and organizations, and not going through a traditional financial institution. You would post the reason you need the loan, along with how you plan to pay it back, and then a group of investors may choose to provide you with the cash that you need.
Contact Infinity Commercial Lending to learn more about alternative small business loans that may be available in your area.