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There are numerous choices available to small entrepreneurs looking for working capital loans to get their business off the ground. Some of these options include SBA 7(a) term loans as well as non-secured working capital loans. You could also look into alternative financing options that can be used to help finance your small business.

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SBA 7(a) term loans
If you are a small business owner who is in need of working capital, you should think about applying for SBA 7(a) term loans. These loans are flexible and can be used for a variety of purposes. The funds can be used for refinancing debt, expanding your business, or for purchasing assets.

The SBA guarantees a part of the loan to make it less likely that lenders will default. The guarantee is accompanied by a fee. The fee is typically 3.75% of the loan’s guarantee amount.

Anyone interested can gain a better understanding of the SBA 7(a) loan by checking out the SBA website. They will also be able to access the SBA Lender Match Tool, which connects applicants to lenders with approval within two days.

As with all loans the rate of interest on a 7(a) loan will be contingent on the amount and the terms of repayment. It can be fixed, variable or linked to the Prime Rate.

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To be eligible for an SBA 7(a) loan you must fill out an application and get it approved. The lender will then look over your financial standing and analyze your business plan. Once you have been approved, you sign a loan contract to receive the loan funds.

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Unsecured working capital loans
If you’re just starting out or expanding, a non-secure working capital loan could be an excellent financial choice. It can be used to finance expansion, equipment, or to upgrade your building among other things. The right type of loan will make your business grow.

Getting a working capital loan could be a lot easier than you think. The loan can be secured with just one page unlike the line credit. You can even fund your loan by using 3 months of bank statements for business.

Unsecured loans are characterized by higher rates of interest. This is due to the fact that the lender takes on a greater risk. As such the business owner must have a strong credit score in order to be eligible. You must also have a plan for repaying the loan in a timely manner.

Unsecured working capital loans can be an excellent option for your business to cover short-term financial gaps. With a working capital loan you can take advantage of low prices on key products and upgrades to your facilities. A working capital loan will help you to keep your company afloat during tough economic times.

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Another benefit of an unsecure working capital loan is that you don’t have to pledge any of your assets. Typically lenders will require the payment processor’s URL and an account for deposit.

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Small-scale businesses have additional financing options
Many entrepreneurs are opting for alternative finance models for small businesses as the most preferred option. They provide flexible financing options that can provide you with the cash you need to grow.

Alternative loans can also be less expensive than conventional ones. Banks usually require large deposits and you may need to wait a few months before you can obtain the money you need.

Alternative business loan options include lines of credit, invoice discounting, credit card, and cash advances from merchants. These options can allow you to quickly obtain funding.

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Business lines of credit work similar to credit cards but charge interest only on the money that you take out. These options can be particularly useful for spending on short-term expenses.

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Working capital loans can be helpful for day-to-day expenses for example, paying employees or ordering inventory. They’re not the ideal solution for large-scale transformations of businesses.

Make sure to choose a lender who has experience in alternative business loans. Also, think about your credit score. Your chances of getting a favorable finance deal are better if have a better credit score.

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Other alternative financing options for small businesses are peer-to peer lending. Peer-to business lenders provide small businesses with loans from multiple investors, similar to crowdfunding. This option is particularly beneficial for small businesses who do not have collateral.

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