When you are starting a new business, your funding options may seem limited. It may be difficult to get a business loan from a bank, as your business has not yet established itself and may seem too great a risk for many lenders.
Business cash advances may seem like a quick and easy way to the cash you need, but they are usually very costly, (see Part 1 of this series). Since the interest rates on business cash advances are usually much higher than the rates for traditional loans. There are a few other options a new business owner can explore to get the money you need.
Consider Credit Cards or Lines of Credit
One way a new business can get money or manage its cash flow is to apply for a business credit card. Like a personal credit card, a business card is a revolving account. If you are able to pay down the balance in full at the end of each billing cycle, you will not owe any interest. You do have to be careful when using a business credit card, as you may find yourself deep in debt and having to pay high interest rates if you do not watch your spending.
Try a Personal Loan
Another option is for a new business owner to take out a personal loan. The loan is in the name of the person, not the business, which sets the bank’s mind at ease. If the business fails, you are personally responsible for the loan, which does put your own personal finances at risk. The loan may be worth it in the end, especially if you are able to repay it and your business succeeds. Usually, the collateral for the loan is an item such as your house or car.
For more information, go to Business Cash Advance at http://www.unsecuredbizloan.com/business-cash-advance