Do you need to find funding to take your venture off the ground and keep it afloat? Credit cards and loans are two of the business financing options you can apply for. Both come with advantages and disadvantages. You can also get a business cash advance to grow your business successfully. You just need to weigh both pros and cons to decide on the best option for your startup.
No matter you’re in need of capital to get a business started or you need it for expanding your current operation, you should shop around to make the right choice for you. Let’s look at business credit cards and loans for startups.
Business Credit Cards
Businesses may find credit cards perfect, however, they’re excellent for small, everyday purchases. Specifically, business credit cards offer the following features:
- Credit cards allow you to retain full control of your company. Also, you can get immediate access to the funds if you already have the credit limits.
- However, you’ll be obliged to pay high interest Moreover, the debt is yours, no matter the business makes it or not.
- You get an opportunity to build your credit in the process. You’ll get your approval based on your personal credit score.
- As for rewards credit cards, these can be invaluable if you’re interested in keeping your startup budget as lean as possible.
- You can find various personal and business credit cards that don’t offer any introductory rates on purchases and balance transfers.
Loans for Startups
It’s no surprise that banks can often deny you startup loan request if you’ve got some problems with your personal credit. Here’re some other nuances associated with startup loans that you should be well aware of:
- Loans offer a key benefit as compared with credit cards: their interest rates may be lower, which means less expensive capital.
- However, credit cards usually don’t provide much capital.
- You’ll be required to provide this or that type of collateral for the majority of business loans so to secure the loan, which means putting assets on the line.
Startup Funding Alternatives: Get a Business Cash Advance
Of all the things you may be faced when starting a business, money and funding could be the most difficult to find. Thankfully, alternative online lenders have changed the situation for the better. With a reputable alternative online lender or business funding provider, you can get a business cash advance with ease.
- Merchant cash advances or MCAs are extremely popular these days, especially for those who have no time to wait for a loan approval.
- Thanks to this type of business funding, you obtain a lump sum of money in exchange for your future credit/debit card receivables.
- MCAs are fast and easy to apply for, but they require high rates that you should be ready to pay.
It can be rather challenging to find financing for your startup in any economic climate. Turn to a true professional in the industry to be able to hold on through the tough times or expand your business successfully.
Author Bio: As the FAM account executive, Michael Hollis has funded millions by using business funding (e.g., helping them get a business cash advance) solutions. His experience and extensive knowledge of the industry has made him a finance expert at First American Merchant.