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Getting a business loan with no money: The top 3 options

Getting a business loan with no money: The top 3 options

As you can imagine, it’s tough to get a small business loan with no money. And while it’s unlikely that you’ll be able to secure a traditional term loan or SBA loan with limited funds, you have other financing solutions available to you.

If you’re thinking about how to get a business loan with no money, you might have an easier time qualifying for the following financing solutions. And, if you do, these alternative loans can help boost your business’s cash flow, so you can be in a position to graduate to a small business loan that yields even larger amounts of cash.

1. Business credit cards

Your business’s biggest expenses, like payroll and rent, will require loan-sized funds to satisfy. But you can meet the countless other expenses you face daily with a business credit card . Plus, using a credit card responsibly (which, in large part, means paying your credit card bills in full and on time every month) will boost your credit score and help you qualify for more business loans in the future.

Cash flow is important, but credit-card issuers care more about your personal creditworthiness as a crucial factor in the business loan application.

There are countless business credit cards on the market today, and they all come with perks, rewards and features that match the reason you’re looking for funds in the first place.

As we said before (and as you’ve definitely heard before that), it takes money to make money. paydayloanstennessee.com/cities/clarksville/ Using a cash-back business credit card is case in point: Spending in certain categories earns you hard cash, which you can then reinvest back into your business.

2. Equipment financing

The underwriting process for an equipment loan is a little different than that of a traditional term loan. The lender fronts you the cash to fund up to 100% of a piece of equipment, and they use the equipment itself as collateral.

For that reason, lenders are just as concerned with the value of the equipment itself as they are with your business’s financial record. The terms of an equipment loan are based on credit (both business and personal), time in business, and how well the equipment fits into your business plan. Cash flow isn’t a major factor in that decision.

If you’re looking for a new machine, computer or vehicle to boost revenue, it makes a lot of sense to look into an equipment loan.

Invoice financing ties back to a situation we discussed earlier: When you’re waiting to get paid for completed work and expenses keep adding up. Fortunately, there are lenders who can analyze those unpaid invoices and extend funds to you ahead of time, so you don’t need to wait idly by until you get paid.

Like equipment loans, invoice financing is a type of collateralized loan. In this case, invoice finance companies use your business’s unpaid invoices as collateral and, in exchange, they’ll front you 80% to 90% of the missing cash. You’ll get the rest, minus the invoice financing company’s fee, when your customer pays the invoice.

As with an equipment loan, invoice financing companies are just as concerned with the value of your invoices as they are with your business’s finances. So businesses with limited cash flow might have an easier time qualifying for this type of loan than others.

The best solution to get a business loan with no money

If you’re looking into how to get a business loan with no money, it’s definitely worthwhile to look into these financing solutions. But, in reality, the best course of action is a little less exciting. If you can wait, wait!

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