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Choosing the Right Financing for Your Small Business

Choosing the Right Financing for Your Small Business

By bridgetwpollack, Guest Blogger
Published: October 9, 2014 Updated: October 20, 2014

Small business owners, on average, spend 33 hours seeking credit. Why so long? That’s valuable time during the startup phase! When it comes to choosing the right way to fund a particular business idea, many find themselves overwhelmed with all the options available. Especially in recent years with the advent of online lending tools, the possibilities for small business financing truly abound. By knowing your options and preparing for success, you can spend that 33+ hours running your business instead of scrambling for cash. Today, I’m going to share three great resources designed to aid you in weeding through the choices and pinpointing the best one for your given business model, financial needs and timeline.

Which Business Financing is Right for You?

In a recent live webinar, Louis Caditz-Peck of Lending Club presented a wide range of credit options available to small businesses, particularly newer sources of financing including online credit marketplaces and other online funding, as well as traditional sources like bank lending, credit cards, nonprofit lenders and more. Listen in to this webinar to learn:

  • The pro’s and con’s of each of your financing options

  • How to wisely use business credit cards

  • The average credit approval rates of large and small banks

The Top 5 Small Business Loan Products

Do you know what the top 5 small business loan products are? Now you will! In a recent blog post, Meredith Wood, Editor-in-Chief at Fundera, shared her insights into the pro’s and con’s of each of these 5 options: commercial bank loan, non-bank term loan, line of credit, business credit card and merchant cash advance. Consider how each of these options may work for your situation. For example, have less-than-stellar credit and business going through a dryspell? A merchant cash advance may work best for you. Or perhaps you’re not in such a crunch and are simply investigating options for financial flexibility further down the road. A line of credit may just do the trick for you.

Crowdfund the Right Way 

Finally, if after weighing all of the various options you’ve determined that crowdfunding is a viable funding method for your business, cut right to the chase by following the best practices of those who have gone before you. The new SCORE Infographic offers top tips for crowdfunding successfully like:

  • Run your campaign for 45 days

  • Ask for <$10,000

  • Include a video

SCORE infographic

In the end, a little research and consideration will get you a long way. Once your initial startup funding is secured and your business gets rolling, if all goes well you just may find yourself further down the road looking for financing once again when it’s time to expand. And you’ll know exactly where to turn.

About the Author:

bridgetwpollack
Bridget Weston Pollack

Guest Blogger

Bridget Weston Pollack is the Vice President of Marketing and Communications at the SCORE Association. She is responsible for all branding, marketing, PR, and communication efforts. She focuses on implementing marketing plans and strategies to facilitate the growth of SCORE’s mentoring and trainings services. She collaborates with SCORE volunteers and develops SCORE’s online marketing strategy.