Financial crunches are not just for big business and mega corps only. If you are the founder or CEO of a startup or medium-sized business, you may face a financial crunch too. For all finance savvy owners, freeing up business capital for several departments and projects is a little easier. Refinancing and Debt consolidating are also practical options for those who want quick cash.
According to the Federal Reserve’s Small Business Credit Survey 2017, almost 25% of all businesses that applied for funding in the second half of 2016 also wanted debt refinancing.
Refinancing can lower the rates you are paying right now. This will help your business progress into new markets. However, first, you need to understand the two concepts mentioned this far –
- Debt consolidation- combines several small loans, merchant cash advances and other forms of business debt into one big loan that can lower payments.
- Debt refinancing- you can take out a lower interest loan to pay off your original amount to save on interest rates.
If you have been around the block for over two years, you might find it easier to get these loans from banks. Even if banks agree on giving you consolidation loans or refinancing aid, you can be sure that their interest rates are going to be higher. Many banks have stringent credit score requirement for business owners to qualify for business refinancing and consolidation.
In such cases, it is smarter to turn to online lenders for consolidation loans. With an increase in the number of companies offering financial services online, it has become necessary to check their reviews before you commission their services. You should check the debt consolidation reviews before you make any form of commitment. Customer ratings and reviews are the only way you can find out how much a company cares about its clients.
You can try Yelp and other business directories for gaining insight on their customer policies. Reviews on Yelp are verified. They cannot be deleted either. Therefore, you can be sure about getting the most authentic customer feedbacks from these businesses listing websites.
Here are some of our favorite ways of getting funding for your business and new projects –
Smart options for the lowest rates
SmartBiz is an online platform for all small business owners who are in need of quick cash. This platform offers the most reliable funding options at the lowest interest rates. You can expect between 7% and 8% interest rates while borrowing from SmartBiz. This does involve much laborious paperwork. However, it does not seem like much of an issue keeping the low-interest rates in perspective. The loan terms can be for as long as ten years during which you can pay easy monthly installments at pocket-friendly rates.
Best for low business returns
This is our star of the fintech boom. Funding Circle can get you loans between $25,000 and $500,000. You can expect an APR between a breezy 8% and a steep 33% depending on your loan requirements. Usually larger sums with longer repayment terms attract a higher APR. The terms can run from one year to five years. Funding Circle is well known for granting payments within ten days of application. Although most companies use Funding Circle payments for expansion, you can also use the funds for consolidation your existing loans.
For businesses at least one year old
This is a quick cash option for those who need short-term financing. The loan repayment terms are between one, two and three years. There is a thorough credit check involved for getting funding from the Credit Capital. The no repayment penalty is the most attractive feature of Credit Capital. This is a brilliant option if you are looking to consolidate or refinance high debts.
For new businesses
If your business is less than a year old, check out DealStruck. Since they give out loans for firms that have been around for one year or less, their APRs tend to be on the higher side. You can expect anything between a 10% and a 28% interest rate for your loan. The shortest loan repayment term is six months, whereas the longest one can be four years. You can get your cash within ten days of application. You can apply for $50,000 to $500,000 from DealStruck. The amount will determine your repayment term and interest rate.
For the larger small businesses
Fundation is probably the current best option for all medium businesses. You need quick cash; you should go to Fundation. This platform can get your loan amounts between $20,000 and $500,000. The APR can run between 8% and 30% depending on your credit score, repayment term, and loan amount. The requirements – you must have at least three employees and a minimum of $100,000 in revenue to qualify for a Fundation loan.
For networking agencies
This organization offers up to $1,000,000 in a loan for any company with a strong client base. Your friends and family can partly subsidize this sum. This is an excellent choice for your agency if you have a big, loyal customer base. This is great for networking organizations and communication agencies looking to expand soon. The Able Growth loan model makes sure that Able picks up the rest of the financing after your sponsors have made their contribution. Able Lending also offers the more conventional loans.
The ongoing need for business capital
All these loan companies provide refinancing options and debt counseling for businesses. These are ideal for startups and SMBs who face the frequent need to refinance their loans. The six platforms cater to a wide variety of audience, and they should more than satiate your need for business finances. For more information on their services, do not forget to check their reviews sections.