If you’re thinking of starting a business, or are already a small business owner in need of funds to expand or stay profitable, one of the first things to consider is where the money will come from. Bank loans are acceptable for some business owners, but they often require collateral. If you have bad credit you might not be able to secure one. Being turned down for a loan can be a discouraging prospect, but there are other options available. Here’s what you need to know about alternative business financing. Photo credit: LendingMemo / Foter / CC BY If you’re looking for a way to fund your business’s expansion, buy new equipment, or pay off existing loans, the options can seemingly be endless. You may have heard about alternative methods of funding and wondered what makes them different from traditional bank loans. Here are a few reasons why a different funding option might work best for your business. Flexible Repayment With a merchant cash advance

If you’re thinking of starting a business, or are already a small business owner in need of funds to expand or stay profitable, one of the first things to consider is where the money will come from. Bank loans are acceptable for some business owners, but they often require collateral. If you have bad credit you might not be able to secure one. Being turned down for a loan can be a discouraging prospect, but there are other options available. Here’s what you need to know about alternative business financing.   Photo credit: mgbjay / Foter / CC BY-ND What is a Merchant Cash Advance Program? A merchant cash advance program involves a merchant borrowing a lump sum against future sales, usually paying back the money through a portion of each credit card transaction. Generally, they feature short repayment terms and small daily repayments as opposed to the monthly payments associated with traditional loans. Merchants agree upon a percentage of their sales to be paid

Many small business owners are turning to alternative sources to secure capital for their businesses. Whether they lack collateral to secure a traditional loan or are having trouble getting approved because of their credit histories, more and more people are looking for a way to finance their businesses without relying on bank loans to make it happen. People secure loan alternatives for a number of reasons: changing location, purchasing inventory, expansion, covering operational costs, and buying new equipment, just to name a few. If you’re a business owner looking to expand but wondering where the money will come from, here is some background information on alternative small business loans to get you started.   Photo credit: aresauburn™ / Foter / CC BY-SA   Questions to Ask Before you begin the loan application process or seek out an alternative small business loan, it’s important to ask yourself a few questions about your business to find out which option is best for you. For instance, how long

TOP css.php