WHAT IS BUSINESS FUNDING?
Are you finding it challenging to find financing options for your business?
Are traditional bank loans, credit unions, and credit cards no longer funding options?
Has your company hit a financial brick wall?
Even when sales are increasing, sometimes, the only way you can grow and expand your business is with business funding.
Without it you can’t:
Your business can’t grow without the money to do these things, and you won’t own your business – your business will own you.
Access to commercial financing is quick, simple, and hassle-free with Sunwise Capital.
In fact, Sunwise Capital, a top ten alternative lenders, is a performance-based lender. We say YES based on the health of your business – not just your personal credit score.
Our model makes almost any type of financing available to well-run businesses that just fall short of the traditional bank loan requirements.
Our key metric is the cash flow and average daily bank balance in your business. This serves to be a much better indicator than your credit score alone.
This change in traditional underwriting enables us to lend to companies that might be shut out of competitively priced business loans. By changing the underwriting process, it easy for you to receive loans at competitive rates and terms.
Complete the brief form, and you’ll be pre-qualified in just twenty hours, and funding in less than two days. Let Sunwise Capital help you reach your business dreams now.APPLY NOW
Forget the banks. Forget being held for ransom. Forget missing out on opportunities because your bank says, “NO’” and you’re short of funds. Apply NOW! Let Sunwise Capital put you on the “Path to Prosperity.”
WHY DO BUSINESS NEED FUNDING?
Simple. Companies need business capital to grow and expand. Whether you bootstrap the growth of your business startup or you seek immediate business loans from either a traditional bank, family and friends or business funding from alternative lenders, all business owners know that without the cash to grow your business your business will be nothing more than a hobby. You’re a business wannabe.
“It’s almost always harder to raise capital than you thought it would be, and it always takes longer. So, plan for that.” – Richard Harroch, Venture Capitalist, and Author
WHAT DOES BUSINESS FUNDING MEAN?
Business startup funding is the money needed to pay for any new equipment. This access to capital can be equipment financing for the outright purchase of equipment leased. You’ll need a capital loan for staffing or small business employee funding (perhaps just you). Maybe you need money to pay your vendors. This financing may mean you need a vendor program. If you’re able to get a signed contract or order, you may need invoice financing or factoring.
HOW DOES SMALL BUSINESS FUNDING WORK?
For most small businesses, the easy business funding comes from the business owners. This is generally known as contributing capital. It is used to buy the shares of the company. The business funding partners receive a percentage of the profit based upon the portion of shares they own.
This is the first step to get business funding.
There is no need to get a loan calculator to start. If you have poor or bad personal credit, you’ll need to find bad credit loans. Those with personal credit scores above 650 can seek an SBA loans. The SBA 7a loan (Small Business Administration) is the most popular. Business loans from a traditional bank are one of the funding options available to your startup. Bank loans will depend on personal credit scores and assets or collateral. These are difficult for the business startup.
Funding a Business Venture – How Does Business Funding Work
The typical sources of business finance are:
Personal Funds in the form of cash or collateral or assets.
Venture Capital is private equity provided to those startups that are perceived to have high growth potential. Think Silicon Valley and high tech industries when considering business venture funding.
Angel Investor is usually the friend or family member that provide the seed capital or one-time investment to launch the company.
You can find Business Grants at Grants.gov for federally funded small business funding and grants. You can also look at the Small Business Innovation Research (SBIR) Program.
Bank Loans are nothing more than a loan that is for business purposes only. This loan creates a debt for the company and is repaid with interest.
Factoring is when a company sells its accounts receivables, usually the invoice, to a third party. This party is known as the factor and provides fast funding with no commitments and zero debt to repay.
Credit Card – business funding credit cards work for any business. There are no restrictions on the use of the funds. The caveat is that the business owner (or owners of the company) must act as personal guarantors and must have good credit. They don’t need perfect credit, however, should be at least 650 if not higher. Using credit cards is not business funding without credit check nor is it bad credit business funding. These are business funding credit cards that are using your personal credit for approvals. Rates can be as low as zero percent or have very low-interest rates.
401(k) business funding structure uses your previous employer’s 401k retirement account. The government’s Employee Retirement Income Security Act (ERISA) enables you to make your business funding 401k the investor. You need professional guidance with this strategy.
Crowdfunding is the social media business funding crowdfunding model. The strategy is simple. Ask a large number of strangers on the crowdfunding platform for money. This is the known as the crowd source funding for business. Pick your business or project. Go to a crowdsourcing platform. Write a budget. Set a goal. Specify how much money you need. Create a pitch. Start your campaign. It may help to read a crowdfunding business article or two before you start.
SBA Loans are becoming increasingly popular with the increase in SBA funds. Remember that the SBA does not make the loan directly. The SBA.gov serves as the guarantor of the loans. They have several programs including the SBA 7a loans, microloans, and 504 loans.
Asset Based Finance (ABL – Asset Based Loans) is a popular funding option for those companies that lack business credit or the more traditional benchmarks to qualify for a business loan. You will use company assets as the collateral. Collateral can take the form of real estate, equipment, inventory, and receivables.
Invoice Finance is gaining in popularity as a direct result of the pullback by banks and credit unions in the small to medium size business market (SMEs). This alternative finance method is a form of factoring the outstanding invoices whereby the company borrows against the invoice at a discount. One perceived challenge to this type of funding is that the financing company takes ownership of the debt and it uses its credit team to control the payments. If it’s invoice discounting, the company remains in control of the debt. It is a matter of choice as to which type of financing works for the business.
Alternative Lenders provide access to business funding online. There are a plethora of online business funding sites. Make sure you work with top ten lenders like Sunwise Capital. You can even find funding for your online business with these nonbank lenders. You will see they offer secured and unsecured business loans. The unsecured loans provide no traditional guarantees and no assets and no collateral. Some of the loans do ask for personal guarantees and are usually with lower interest rates.
SUMMARY – WHY SMALL BUSINESS REQUIRES FUNDING
Business loans come in a lot of shapes, sizes, and names. Whether business owners call it cash advances, a line of credit, or working capital, business finance is critical to any business success or failure. There are as many reasons why a business needs money as there are companies.
These loans can be for working capital, to purchase equipment, inventory, new hires or to replace old debt at better rates and terms.
The five reasons why small business requires funding:
1. Perhaps the two most important words in the business owner’s lexicon are CASH FLOW. Grant Cardone the bestselling author of “The 10X Rule and If You’re Not First, You’re Last” who works with Fortune 100 companies such as Google, Wells Fargo, and Ford once said, “Rich people use debt to leverage investments and grow cash flows. Poor people use debt to buy things that make rich people richer.” The point is that the most successful people we deal with do not look at the loan as an expense but as an investment. It’s an investment to grow their business. They look at the funds and the associated costs as a tool to grow and expand. Some expand exponentially. Those that take this approach almost always have excellent cash flow.
2. GROWTH and EXPANSION are the natural offshoots of excellent cash flow management. Business owners that look to grow your business and expansion seek opportunities that they can exploit (in a positive way) to increase their ROI or the return on investment. These opportunities may be in the form of advertising or marketing, renovations or commercial real estate. Sometimes they need equipment financing for that asset that new project or business ideas that makes them more competitive.
3. Having a CUSHION is another top reason for seeking US business funding. Having a business plan outline and as part of your business plans strategy is to keep that cushion for a rainy-day fund, opportunities to buy inventory or materials at a discount. Keeping your powder dry for that rainy day means understanding that businesses experience ups and downs. Having small business funding options available helps you through these cycles. Opportunities abound when you are looking for them. However, once you find the opportunities, the question of how to get funding for a business usually means it’s already too late. Lastly, growing your business very often means having funding solutions at your fingertips.
4. HIRING says you’re growing. Some business owners will cut expenses elsewhere to facilitate bringing on new personnel. The savvy business person knows their numbers and calculates the return on a new employee and will use a business funding expert to help them navigate the best business funding alternatives.
5. INNOVATION means that to stay competitive, you need to develop new strategies, products or services to survive. More times than not, this means investing in yourself or business. Logically, unless you’re sitting on large piles of cash, you’ll need to find business funding.