Starting or running any business without any sufficient amount of capital is extremely difficult. Whether you own a store, restaurant, caf?, dry cleaners or any business, you find financing business is always a major issue. Your local bank is not willing to grant you a working capital loan. Even some banks may do, but their requirements are so tough to follow, business owners might just look rather their own personal resources, or either other private lenders.
Almost every other business needs working capital in order to keep sustaining, grow and flourish their business. So where does a business owner find a way to working capital or a certain amount of loan to establish their business. Although the financial crises have hit hard nearly everyone in the world, but on the other hand due to these crises, many private and non-traditional funding companies have come into the market to support such affected businesses.
For example, in the US, The Small Business Administration (SBA) made many changes to its loan policies, such as, low equity requirements, longer lending criteria and fast process in the application. The limits of lending are now offering from $150,000 up to $5 million. Apart from working capital, SBA will finance furniture, fixtures and equipments, also to refinance your businesses. SBA currently provides an interest rate as low as 5.25% and with a term up to 25 years. It is quite understandable that supporting small businesses and creating new jobs is a healthy sign of economic growth for any country.
Unsecured lines of credit (ULOC) also available up to the limit of $150 thousand to business owners, with a credit score above 700. Interest rates are also relatively low and easy to afford. There are no verification requirements for your income and no tax return or financial statement either.
These loans are purely approves on the borrower’s ability to manage a business and good credit. This is an ideal opportunity either to start any business or franchise purchaser. The maximum loan is up to $150 thousand to each borrower. This is very useful for franchise purchases because the lender will provide finance up to 90% of the cost of the franchise. The monthly repayments of these loans are based upon the actual outstanding amount. There is no interest charged in the first six months of the loan period, and also no upfront fees. So there is even more helpful for a business owner, in this way, there are more chances to establish their business well without any burden of interest.
Another quick and easy solution to get capital is Merchant Credit Card Advance program. They do not lend capital, but actually advance funds up to 200% of the average of the merchant credit card receipts for the six months. There is no upfront fee, no other financial requirements, except the business should be six months old, and the monthly minimum credit card charges should be $5,000.00.
So if, you are looking to start a new business, or even need an extra loan to support your running business, look beyond your local banks. There are other non-traditional sources available, where you can get the working capital at a very affordable term.

Working Capital


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