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There are a myriad of options for small-scale business owners looking for working capital loans to get their business off the starting point. One of them is SBA 7(a) term loans as well as working capital loans that are not secured. You might also look into alternative financing options that could be used to help finance your small business.

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SBA 7(a), term loans
SBA 7(a), term loans are available to small business owners who require working capital. These loans are flexible and are able to be used for many reasons. The money can be used to repay loans, expand your business or even purchase assets.

The SBA guarantees a portion of the loan so that lenders are less likely to default. However, a fee is paid for the guarantee. This fee is usually 3.75 percent of the guaranteed amount of the loan.

The SBA website offers a thorough explanation of the SBA 7 (a) loan. They will also have access to the SBA Lender Match tool, which connects applicants to SBA-approved lenders within two days.

Similar to most loans, interest rates for 7(a) loans can vary dependent on the amount and repayment terms. It can be fixed or variable and linked to the prime rate.

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You’ll need to fill out an application to apply for an SBA 7(a) loan. The lender will examine your financial history and review your business plan. After approval, you sign a loan contract and receive the loan funds.

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Unsecured working capital loans
If you’re just starting out or expanding, an unsecured working capital loan could be an investment that is financially sound. It can be used to purchase equipment to expand your business or to upgrade your building. The right choice will help your business thrive.

It is much simpler than you might imagine to get a capital loan. As opposed to a credit line you can apply for the loan using a single application. You can even use 3 months of bank statements from your business to finance your loan.

Unsecured loans are more expensive in terms of interest rates. This is due to the fact that the lender takes on more risk. To qualify, a business owner must have excellent credit ratings. In addition, you should have a plan for repaying the loan in a timely manner.

Unsecured working capital loans can be an excellent method for your company to bridge short-term financial gaps. You can get low prices on essential products or upgrades to your facilities by using working capital loans. Getting a working capital loan will allow you to keep your business running in tough economic times.

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Another benefit of having an unsecured working capital loan is the fact that you do not need to pledge any of your assets. Typically, lenders will ask for an online payment processor and a deposit account.

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Small-scale businesses have other financing options
Many entrepreneurs are choosing alternative financing models for small businesses as the most preferred option. They offer flexible financing options that will give you the money you require to grow.

Alternative loans are also less expensive than conventional ones. Banks usually require large down payments and you may be waiting a long time before they will be able to give you the money you need.

Lines of credit, cash advances for merchants invoice discounting, credit card, and credit cards are all options for business loans. All of these options offer you the possibility of obtaining funds quickly and easily.

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Business lines of credit function similar to credit cards, but they charge only interest on the amount that you withdraw. These are helpful for short-term expenditures.

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Working capital loans are useful for day-to-day costs for things like paying employees or purchasing inventory. However, they are not suitable for major business transformations.

Be sure to choose a lender with experience in business loans for alternative businesses. Your credit score is also crucial. The higher your score, the higher your chances of securing a favorable financing deal.

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Peer-to-peer lending is a different financing option for small companies. Similar to crowdfunding, peer-to-business lenders offer small businesses loans from several investors. This option is particularly useful for small-sized businesses that don’t have collateral.

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