• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Education
  • Career
  • Investment & Money
  • Accounting & Taxation
  • Transportation & Logistics
  • Industries

Business Finance Articles

Your First Financial Choice....

  • Business
  • Commerce
  • Management
  • Insurance
  • Banking Finance
  • Marketing & Advertising
  • Tech

5 Types of Business Finance you may have never known about

Last Updated on March 3, 2020 By Ayesha Saeed Leave a Comment

You don’t want to die with your song still inside you. That’s why you’ve been pursuing a side hustle. Every day after you get out of your 9-5 job, you’re reading books and googling resources.

So far, you have some promising prospects, but you’ve run into the same brick wall every time – funding. To advance your ventures beyond the early stage, you need THOUSANDS of dollars you don’t have.

As someone who struggles to save a few hundred bucks each month, you have NO idea where you’ll come up with that kind of money.

Well, today’s your lucky day – you’ve stumbled across this blog! In today’s article on BusinessFinanceArticles.org, we’ll highlight five ways you can fund your startup.

Let’s jump right into it, shall we?

Table of Contents

  • (1) Online Lenders
  • (2) Revolving Lines Of Credit
  • (3) Secured Loans
  • (4) Invoice Financing
  • (5) Direct Financing From Amazon/PayPal
  • There Are An Abundance Of Funding Sources Out There

(1) Online Lenders

Getting a loan from the bank can be tough at the best of times. It’s bad enough that you have to pull together piles of paperwork and prepare a business plan. But then, you have to persuade another human being – who is inclined to say no – to give you money.

And even if you pull off the best presentation you’ve ever done? You’ll still have to wait WEEKS for a verdict. That’s crazy even if you aren’t in a rush, but if your business hangs in the balance – it may come TOO LATE.

It’s an inherently inefficient process, which makes lending a fertile industry for disruption. Online private lenders have done just that – they offer smaller loan minimums, higher acceptance rates, and quicker turnaround than the banks.

Don’t believe us? These fast small business loans start as low as $5,000, with decisions often rendered within an hour. If you are having trouble getting financing or you just need money fast, online private lenders may be the answer.

(2) Revolving Lines Of Credit

If you’ve been in business for some time, you likely know a thing or two about surprise expenses. If the fridge in your cafe dies, you’ll have to spend $5,000 to replace the unit and stock. What if a vandal pours sand into the gas tanks of your company trucks? That’ll be $1,500 per vehicle for repairs and labour.

Time is of the essence in these matters. This is where a revolving line of credit comes in handy. Rather than waiting around for an emergency loan, you can borrow what you need in SECONDS. Instead of your world stopping, easy access to capital keeps things running smoothly.

However, beware that interest rates on revolving lines of credit tend to be HIGH. Some vendors can charge an annualised rate of 40% or more. So, if you draw on a line of credit, pay off your balance owing as quickly as possible.

(3) Secured Loans

Own a significant asset, like your own home? If so, you might be able to qualify for a secured loan. Unlike an unsecured loan, the borrower (you) backs up a secured loan with something of value, AKA your house. In finance, this is known as collateral.

By putting up an asset worth more than the loan, it protects the lender from risk. Consequently, the likelihood of acceptance is far higher, and the term interest rate will be lower. Whilst getting a secured loan can be tricky in today’s economy, it is certainly worth the effort.

(4) Invoice Financing

Here in Australia, the economy hasn’t been doing so hot lately. The last time things were this slow was 30 years ago – when we last slipped into a recession.

Whether it happens in 2020 is anybody’s guess. What we do know is that the slowdown has walloped many small businesses. These conditions have impacted their cash flow, forcing some firms to skip bills to make payroll.

Want to avoid this dilemma? We recommend getting into an invoice financing arrangement. With invoice financing, you don’t have to wait 30/60/90 days for clients to pay – the lender pays you most of the amount owing every month. In return, the lender takes a percentage of each month’s invoice upfront.

That way, you experience less instability, even when times are tough. Ingenious, right?

(5) Direct Financing From Amazon/PayPal

Of all the companies out there, none have had an effect on today’s economy quite like Amazon and PayPal. PayPal pioneered internet money transfer, making it possible for e-commerce to exist, whilst Amazon streamlined it.

So, it doesn’t surprise us one bit that both have waded into the online lending market. PayPal offers PayPal Credit, which provides lines of credit up to a few thousand dollars. And Amazon offers e-commerce entrepreneurs the liquidity needed for growth.

If you are starting out, PayPal Credit might work well. However, with a credit ceiling of only a few thousand dollars, seasoned entrepreneurs can find better options elsewhere.

If you have a growing e-commerce business that interacts with Amazon, Amazon Lending is a viable option. With loan minimums of $1,000 and maximums of $750,000, they have the capital you need to scale up your operation.

There Are An Abundance Of Funding Sources Out There

Ready to take your business to the next level? Despite what you might think, there are scores of options out there. From traditional secured loans to exotic options like invoice financing, there’s a solution that’s right for you.

Ayesha Saeed

A happy mom, professional article writer, SEO practitioner, blogger, guest blogger & freelancer. She’s in digital marketing since 2018. She loves reading books and spend time with her family. She’s provides her services on freelance platform Fiverr. Reach her on Email.

Filed Under: Banking & Finance Tagged With: Lenders, Loans, Private Finance, Types

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I accept the Terms and Conditions and the Privacy Policy

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Primary Sidebar

USDC Gains Legitimacy With Visa Partnership

Bitcoin is the best-known and most successful … [Read More...] about USDC Gains Legitimacy With Visa Partnership

Useful Tips to Reduce Stammering in Interview

Finding a valuable job opportunity that suits your … [Read More...] about Useful Tips to Reduce Stammering in Interview

Why You Should Consider Investing in Bitcoin

People have different conceptions as far as investing … [Read More...] about Why You Should Consider Investing in Bitcoin

Accounting for Small Business – Top 5 Softwares

Individuals and businesses use accounting software to … [Read More...] about Accounting for Small Business – Top 5 Softwares

Six Ways Technology Will Redesign The Business Landscape In 2021

2020 left an everlasting mark on the lives of people … [Read More...] about Six Ways Technology Will Redesign The Business Landscape In 2021

How To Know You’re Ready For Retirement

One shouldn't work for money during their entire … [Read More...] about How To Know You’re Ready For Retirement

What Does Your Growing Business Need to Know About Financial Translation?

High-quality financial translation may be the key to … [Read More...] about What Does Your Growing Business Need to Know About Financial Translation?

A Step-by-Step Guide to Developing a Social Media Strategy

Many successful businesses enjoy the benefits of social … [Read More...] about A Step-by-Step Guide to Developing a Social Media Strategy

The Importance Of Understanding Bonds Before Investing

There's an increasing interest in investing among the … [Read More...] about The Importance Of Understanding Bonds Before Investing

How To Get A Liquor License In Los Angeles

Consumption of alcohol is one of the most preferred … [Read More...] about How To Get A Liquor License In Los Angeles

What Cryptocurrencies Are Likely to Explode in 2021?

Making a profit with cryptocurrencies means following a … [Read More...] about What Cryptocurrencies Are Likely to Explode in 2021?

How did the USA phone number list help the American Healthcare Businesses

Businesses from the States have been using tools and … [Read More...] about How did the USA phone number list help the American Healthcare Businesses

Why You Should Always Have a Lawyer Look Over Your Contracts

No matter what sector your business operates in, you … [Read More...] about Why You Should Always Have a Lawyer Look Over Your Contracts

How to Cash Out Ethereum – A Guide for Beginners

With the latest craze around technology, digital … [Read More...] about How to Cash Out Ethereum – A Guide for Beginners

What You Need to Know About DVR Trucking

Technological advantages keep on getting better. It is … [Read More...] about What You Need to Know About DVR Trucking

How to Master Personal Cash Flow Management

Do you ask yourself the same question every month – … [Read More...] about How to Master Personal Cash Flow Management

Dan Calugar Outlines 9 Macro Technology Forces for 2021

To stay ahead, business and technology leaders must … [Read More...] about Dan Calugar Outlines 9 Macro Technology Forces for 2021

Top 8 Reasons For Business Loan Rejections & Ways To Rectify It

A timely business loan is a boon for small businesses. … [Read More...] about Top 8 Reasons For Business Loan Rejections & Ways To Rectify It

4 Benefits of Investing in Technology in 2021

Nowadays technology has become so pervasive that, it … [Read More...] about 4 Benefits of Investing in Technology in 2021

Difference between Business Analyst and Project Manager

An organization can have both a business analyst and a … [Read More...] about Difference between Business Analyst and Project Manager

Most Viewed

Business Growth Business Ideas Business Needs Business Tips Career Advice Career Development Career Guide Career Options COVID-19 Credit Card credit card reviews Credit Score Debt Management Differences Employee Entrepreneurship HRM Import-Export Importance Investment Loan Provider Loans MCQs Online Marketing Organization Pakistan Partnership Past Papers Payday Loan Payday Loans PPSC Production Pros Cons Publicity Quick Money Tips Roles and Duties Startups Strategies Students Help Tips Top10 Types UK UK Banks USA

Recent Comments

  • Nisha Batel on Useful Tips to Reduce Stammering in Interview
  • Abichi Henry on Top 10 Rubber Producing Countries in World [Uses & Types]
  • alisha on PPSC MCQs: Curriculum Development
  • Dua on PPSC MCQs: Curriculum Development
  • Aiman on PPSC MCQs: Curriculum Development
  • Faria on PPSC MCQs: Curriculum Development
  • saira on PPSC MCQs: Curriculum Development
  • Mehnaz kosar on PPSC MCQs: Curriculum Development
  • alvena on PPSC MCQs: Curriculum Development
  • Sara on PPSC MCQs: The Muslim of the Subcontinent & Their Education

Footer

  • About US
  • Contact Us
  • Blog
  • Comment Policy
  • Terms & Conditions
  • Privacy Rights
  • Privacy Policy
  • Follow on Google News
  • Follow on Facebook
  • Follow on Twitter
  • Follow on Medium
  • Entrepreneur Skills
  • Business Cycle
  • Business Ideas
  • Speculator
  • Be Wealthy
  • Psychology in HRM
  • HRM in Business
  • Businessman Qualities
  • Salespeople Types
  • Health & Business
  • Business Success Rules
  • Stress At Work
Copyright © 2018 BFA - DMCA.com Protection Status .