By NAN Business Editor
News Americas, NEW YORK, NY, Fri. Nov. 16, 2018: It’s the money man! That’s how one small business owner recently described her challenge in seeking to expand her small business. But expansion capital for many can be available at the click of a mouse and in your account in days.
Caribbean Americans seeking start-up and expansion capital have many difference options available beginning with Start-Up Loans, Short-Term Loans, Medium-Term Loans, Equipment Loans, A Line Of Credit, Invoice Financing or a Merchant Cash Advance.
Start-Up loans are a great way to get funding for a new business venture. Depending on your new business’s needs, these loans generally consist of either a line of credit or an equipment loan. A startup line of credit, which can be interest free for 9-15 months, is a great way to get your business off the ground without being saddled with interest payments right away. You will need near perfect credit, though but interest rates are also relatively low, making this a good option for when you’re just starting out on your own.
Short-Term Loans exist to provide small business owners with access to working capital you might need quickly in order to maintain or grow your business. For example, you might need short-term capital to buy the supplies to fill a customer order. Or perhaps your business is seasonal, and you need to hire help at certain times of the year.
Short-term loans are unlike more traditional business loans in that they are generally for less money, have drastically shorter repayment periods, and you often find you’ll pay the lender back daily rather than monthly.
Like short-term loans, Medium-Term Loans are for a fixed amount and you pay them back on a fixed schedule over a fixed period of time. Unlike short-term loans, though, they may be for more money and repaid over longer terms.
Lines Of Credit are one of the most versatile types of credit in the business world. They are simply an open account with a lender that features a fixed amount of credit you can draw on at any time. Lines of credit have many advantages, namely that once you have one in place it is readily available for short-term cash flow needs, and that you only pay interest on the amount that you actually use.
Invoice financing is also a great way to help your business stay in business! Do you find yourself watching your mailbox or inbox for customer payments? Waiting for the cash to flow into your business can be frustrating, but invoice financing offers a short-term solution as you await your customers’ payments.
And finally, a Merchant Cash Advance is a great form of funding when your business simply needs a quick cash boost. It requires relatively little paperwork and the cash can be in your hands in just one or two days. Merchant cash advances are paid back a little differently than other types of business financing. Your lender will take a portion of your credit card sales each day until the entire amount, plus interest and fees, has been repaid. The higher the percentage of credit card sales they take, the shorter the repayment term will be.
So don’t get stressed? Ask for more information on how you can access any of these finance options now.