If you’re looking for ways to grow your small business then keep reading below. There are a few different ways to secure financing from banks, online lenders, and grants. Depending on your situation, you could benefit greatly from financial assistance. So let’s take a look at some of the ways small businesses get the money they need.

Small-business grants

This is the best option for any business looking for free financing. If this sounds too good to be true, it isn’t. Usually offered through nonprofits and government corporations, small-business grants offer assistance to specific industries of business owners.

For startups and any business that can’t qualify for debt financing, small-business grants offer a different way to get financial help. The biggest drawback to small-business grants is that it’s very difficult to get one. The competition is fierce. However, don’t let that discourage you from applying anyway.

SBA Loans

The U.S. Small Business Administration offers lenders a federal guarantee on a loan. This decreases the risk banks take by lending you money, and you also get better rates from lenders. There are a few different types of SBA loans, and it’s important to go over a few.

The SBA 7(a), 504 and SBA microloans are all popular choices among small businesses. In particular, the 7(a) loan can be used in many different ways and can be used for financing up to $5 million.

To qualify, you’ll need to have a credit score of 690 and up, plus a strong annual revenue and in business for at least two years. The application process can get complicated, so make sure you have an organized approach when applying for SBA loans.

Online Loans

As traditional banks become more and more difficult to secure financing, online lending has become more popular. Online loans are an especially good idea for owners with bad credit.

Online lenders offer quick access to cash, with alot of lenders able to turn funding within 24 hours. There are a few different financing options available, from term loans and lines of credit to invoice financing. Just be aware that the cost of borrowing can be higher on average, with some annual percentage rates as high as 100%.  

Growth By Numbers

Any small business looking to get ahead in their industry should consider these options. Depending on your credit score, annual revenue, and years of operating the business, you could qualify for significant financial assistance. So do some research into the options available to you and act in your business’s best interest.