If you are concerned that that the government shutdown is going to affect business financing, you aren't alone. In the last 2 years, the Small Business Administration (SBA) loan volume was at record levels. With the government shutdown, SBA loans will come to a screeching halt as the government agency is on furlough. However, don't be dismayed because nowadays there are so many more funding options for small business than just SBA loans. Here are some options that don't require the government for financing:
Startup Funding
Business that are just starting and haven't even made their first sale yet can get financing. This type of funding is based primarily on the good credit profile of the business owner or a good credit partner (an individual who does not own the business but is willing to act as a financing guarantor).
Unsecured Finance
For new or existing businesses with little or no assets to use as collateral, unsecured lines of credit and credit cards can be acquired fairly quickly. These can be a great source of working capital. Interest is paid only on the funds used and often there is an introductory rate as low as 0%. The qualification is not based on the business revenues but rather on the
personal credit of the business owner or a good credit partner (an individual who does not own the business but is willing to act as a financing guarantor).
Equipment Finance
Equipment financing is available through loans and leases for new and existing business. This type of financing is a good choice for acquisition of new equipment as well as using existing equipment as collateral for additional cash. Qualification is based on a number of factors including the business owner’s personal credit scores and the type of equipment being financed.
Revenue Loans
For a business with a limited (3-4 month minimum), but consistent operating history, revenue-based loans might be the solution to a cash-flow crunch. These are true business loans ranging from $10,000 to $2 million with quick approvals and funding in as little as 10 days. Qualification is based on a minimum of $12,000 a month in verifiable monthly revenues and not the
business owner’s credit scores.
Retirement Funding
For business owners who have retirement accounts from previous employment situations, they can utilize these funds to inject into a business they own through retirement Funding. The funding must satisfy a number of parameters to meet IRS guidelines, so someone who specializes in this type of funding must set this up in order to avoid penalties and taxes.
CrowdFunding
Crowdfunding allows entrepreneurs to acquire funding for their business by obtaining a number of small donations or investments from a large crowd of individuals. The internet has facilitated this type of funding as entrepreneurs can post their business or project on one of a number of different crowdfunding portals. The success of this method relies on the ability to drive donators to the portal to accept donations.
Note: These methods may only apply to the United States.
Business that are just starting and haven't even made their first sale yet can get financing. This type of funding is based primarily on the good credit profile of the business owner or a good credit partner (an individual who does not own the business but is willing to act as a financing guarantor).
Unsecured Finance
For new or existing businesses with little or no assets to use as collateral, unsecured lines of credit and credit cards can be acquired fairly quickly. These can be a great source of working capital. Interest is paid only on the funds used and often there is an introductory rate as low as 0%. The qualification is not based on the business revenues but rather on the
personal credit of the business owner or a good credit partner (an individual who does not own the business but is willing to act as a financing guarantor).
Equipment Finance
Equipment financing is available through loans and leases for new and existing business. This type of financing is a good choice for acquisition of new equipment as well as using existing equipment as collateral for additional cash. Qualification is based on a number of factors including the business owner’s personal credit scores and the type of equipment being financed.
Revenue Loans
For a business with a limited (3-4 month minimum), but consistent operating history, revenue-based loans might be the solution to a cash-flow crunch. These are true business loans ranging from $10,000 to $2 million with quick approvals and funding in as little as 10 days. Qualification is based on a minimum of $12,000 a month in verifiable monthly revenues and not the
business owner’s credit scores.
Retirement Funding
For business owners who have retirement accounts from previous employment situations, they can utilize these funds to inject into a business they own through retirement Funding. The funding must satisfy a number of parameters to meet IRS guidelines, so someone who specializes in this type of funding must set this up in order to avoid penalties and taxes.
CrowdFunding
Crowdfunding allows entrepreneurs to acquire funding for their business by obtaining a number of small donations or investments from a large crowd of individuals. The internet has facilitated this type of funding as entrepreneurs can post their business or project on one of a number of different crowdfunding portals. The success of this method relies on the ability to drive donators to the portal to accept donations.
Note: These methods may only apply to the United States.
