Small businesses are the backbone of the American economy, creating two out of every three net new jobs in the country and yet, these businesses often have a hard time accessing the financing they need to grow and create jobs. This is especially true for businesses that don’t fit the mold of a traditional bank loan, like restaurants or retailers with seasonal sales cycles.
Fortunately, there are a number of small business financing options available that bypass traditional banks. These alternatives can be a great way for small businesses to get the money they need to start or grow their operations.
Here are a few of the most popular options:
1. Business loans from online lenders:
Online lenders offer loans to small businesses with faster turnaround times and less paperwork than traditional banks. Some online lenders also specialize in providing financing to businesses in specific industries or with specific credit profiles.
2. Business loans from alternative lenders:
Alternative lenders include peer-to-peer lending platforms, microlending organizations, and invoice factoring companies. These lenders typically charge higher interest rates than traditional banks, but they can be a good option for businesses that can’t get a loan from a bank.
3. The small business opportunity fund:
The Small Business Opportunity Fund is a government-sponsored program that provides financing to small businesses that can’t obtain credit through traditional channels. The program offers loans, lines of credit, and equity investments, and it’s available to businesses located in all 50 states.
4. Business credit cards:
Business credit cards are a popular option for small businesses because they offer fast, easy access to financing. Business credit cards typically have higher limits than personal credit cards, and they can be used to cover a wide range of business expenses.
5. Merchant cash advances:
A merchant cash advance is a type of loan that gives businesses access to a lump sum of cash in exchange for a percentage of their future sales. This type of loan can be a good option for businesses that have strong sales volumes but don’t have good credit or collateral.
6. Business lines of credit:
A business line of credit is a loan that allows businesses to borrow money as needed up to a certain limit. This type of loan can be helpful for businesses that have inconsistent or seasonal sales volumes.
7. Business grants:
Business grants are awards of financial assistance that don’t need to be repaid. Grants are typically offered by the government or nonprofit organizations, and they’re available to businesses in a wide range of industries.
Crowdfunding is a way for small businesses to raise money from a large group of people online. This type of financing can be a good option for businesses that have a product or service that people want to support.
9. Business angels:
Business angels are individuals who invest their own money in small businesses in exchange for a stake in the business. This type of financing can be helpful for businesses that need capital but don’t want to give up equity.
10. Family and friends:
Family and friends are a common source of financing for small businesses. This type of financing can be helpful for businesses that need a small amount of money to get started or grow their operations.
No matter what type of business you have, there’s a small business financing option that can help you get the money you need to grow your business. Whether you’re looking for a loan, an investment, or a grant, there are a number of options available to you. So don’t give up hope if your bank says no – there are other sources of financing out there.
Business loans NY
There are a number of small business financing options available to entrepreneurs in New York. Business loans NY can be obtained from traditional banks, online lenders, and government programs.
One option for business loans new York is the Small Business Opportunity Fund. This program provides low-interest loans to small businesses in underserved communities. Businesses that are eligible for this program can receive up to $1 million in financing.
Another option for business loans new York is the New York City Microloan Program. This program provides loans of up to $50,000 to small businesses in New York City. Businesses that are eligible for this program must have less than 500 employees and must be located within the five boroughs of New York City.Online lenders are also a popular option for small business financing. These lenders offer a variety of loan products, including short-term loans, long-term loans, and lines of credit. Online lenders typically have faster approval times and lower interest rates than traditional banks.
Government programs are another source of small business financing. Programs like the Small Business Administration (SBA) offer loans, grants, and other financial assistance to small businesses. The SBA has a number of different loan products available, including the 7(a) Loan Program and the Microloan Program.
If you are looking for business loans new York, be sure to explore all of your options. The best option for your business will depend on your needs and your eligibility. Talk to a lender to learn more about the options available to you.