Obtaining small business financing for your growing company remains a challenge with corporate banks issuing fewer loans and for lower dollar amounts. Moreover, applying for a small business loan is a time- and energy-consuming task. The good news is today, small business owners have more choices when it comes to securing commercial financing.
Third party financial institutions, which generally operate with much greater flexibility and freer standards than heavily regulated banks, can offer an array of business friendly small business financing options. Because these options may be new to you, premium financing specialists can help go over the fundamentals and how they work. Such professionals are familiar with the pros and cons of equipment financing, purchase order financing, accounts receivable financing as well as traditional business loans.
Know Your Options for Commercial Financing
Each of these options work differently from a business loan, but each provides you with much needed cash to grow or sustain your business. And each small business financing method is reliable and trustworthy and takes much less time than applying for a business loan:
- Equipment Financing – Get cash you need fast by using your existing equipment and machinery as collateral. You can still continue to use your equipment same as you always have.
- Purchase Order Financing – Frequently used in the manufacturing sector, Purchase Order Financing lets you get paid today for your POs, or future orders that have already been made but have yet to be paid for.
- Accounts Receivable Financing – Known commonly as receivables factoring, collect now on unpaid recent invoices or receivables. Why wait 30-, 45- or 60-days to get paid what you are owed.
Though you may not know much about these alternative commercial financing options, premium financing specialists are experts in these areas and will work with you to find the best solution for your business’s unique situation. Though these options may cost more upfront, they are more accessible and available much faster than loans. As a result, they often end up paying for themselves in time savings and related services.