Home Based Business Loan

Whether you are launching your business from home or need help to keep your home-based business going, a home-based business loan is the best option for you to consider. Sometimes alternative funding options like this one are the only approach for you to get the funding you need for your business. This will take a close look at your options for alternative funding for your home-based business including short-term loans, merchant cash advances, and other helpful options for your business.

Short-Term Loans

Short-term loans are an excellent solution if you are looking for a fast money option for an immediate need. These types of loans typically don’t require a lot of paperwork to apply for the loan and you can use it for almost anything that you need for your business. Short-term loans are generally used for things like filling in those gaps that occur between payables and receivables, hiring new employees, inventory purchases, and repairing equipment. These are often paid back through ACH (Automated Clearing House) payments on a weekly basis and are more flexible than traditional loans. It’s also important to know that these have shorter repayment schedules, which can cost more than traditional loans.

Merchant Cash Advances

Merchant cash advances are another type of alternative funding that can greatly benefit your business. Depending on your business, you could get hundreds of thousands of dollars in under 48 hours with merchant cash advances. With this option, you pay back the loan with an extra percentage with your credit card payments as you process them. These payments will happen either on a daily or weekly basis, depending on the terms of your loan, until the loan has been successfully paid off. This is a flexible loan option that can be used for pretty much anything that your business needs, including hiring staff, buying inventory, purchasing new equipment that your business needs, and expanding your business. What’s good about this type of loan is that you pay more or less depending on how your sales.

Business Lines of Credit

Lines of credit are great options if you are in need of paying for short-term expenses like covering operating costs for a temporary period of time or expanding your inventory. What makes this an excellent choice to consider is that they work just like credit cards do: you are given a specific amount of money that you can use, and you can use whatever amount of that money you need when you want it. The money and interest that you pay back is based on how much money of the line of credit that you actually use. You make payments on a regular basis and the interest rates on lines of credit are much less than what you would pay when you use traditional credit cards.

There are 2 types of business lines of credit to consider for your home-based business: unsecured and secured business lines of credit. There are benefits and downsides to each of these options. With an unsecured business line of credit, you aren’t putting up any of your business assets up as collateral for the credit. Because of this, the loan is risky for the lender which you will have to pay for when you pay back the loan due to higher interest rates. You also need excellent credit to even qualify for this type of funding.

The other option is a secured business line of credit. This option does require you to put up assets as collateral to qualify for this funding. Lenders won’t often ask for property as collateral, rather they will use your inventory or receivables to get their money if you default on your loan. This means that they will seize your collateral as payment.

In both of these options, your business does need to be in good standing to qualify for a business line of credit. Most lenders do prefer to work with businesses that are more established since this means that they often have better financial standing, which means that they will be more likely to pay back the loan.

Equipment Financing

Are you in the need for new equipment for your home-based business? A specialized loan like equipment financing can be a good choice for your business. This type of funding is specifically made for business owners that need to purchase some type of equipment for the operations of their business. The loan amount will be completely dependent on the equipment that is needed and the terms for repayment are typically about as long as the equipment is expected to last. It will depend on whether or not the equipment is new or used. If you don’t pay back the loan according to the terms, the lender can seize your equipment as collateral.

Trying to find funding for your home-based business can be extremely difficult and overwhelming, especially when compared to the process of finding funding for a traditional business. This doesn’t mean that you have to give up; it just means that you may not be able to go to traditional lenders for your funding. Alternative funding can be the best way to find funding for your home-based business, as well as the easiest option. When you get alternative funding, you get the money that you need fast without a lot of paperwork required. You are also more likely to get accepted for loans when you take this approach.

It’s important that you go through a reputable lender if you are going the alternative funding route for your business. A reputable company like South Florida Funding Group makes the process of applying for loans easier and gives you a better chance at getting the funding that you need for your home-based business. Alternative funding offers many different solutions, so you just need to pick the best option for your needs and your business. It’s important to carefully consider all of your options to make sure that you get an option and terms that work for your home-based business.