We are beginning to reopen our doors for business now that we are on the backside of the COVID-19 curve. Bringing our employees back to work is critical to the economy. We can’t count on the government forever because soon, programs such as Paycheck Protection Program and EIDL will no longer be available. You will need liquidity to purchase new inventory, fix broken equipment, advertise, make payroll, and so on. The only problem is your cash flow because businesses achieved no revenue during the lockdown. In the new economy, loans will be hard to find once readily available. So here are three different loans that can help you jump-start your business.
0% Business Credit Cards:
Choosing a card with an introductory 0% APR can be an excellent move for a small business. Businesses across America have decreased their cash flow by 50% or zero. In some cases, getting a lender to provide funding will be a challenge.
The great thing about business credit cards is they are solely based on your credit score, not cash flow. If your credit is over 700 >, you have four or fewer recent inquiries, and your credit utilization is less than 40%, apply now because you can pay off large purchases over time without worrying about accruing interest – allowing you to invest in your business truly.
If you have a large business purchase looming ahead, you want to finance. Or if you need to pay off some debt from previous purchases. Plenty of great small business credit cards offer 0% interest on new purchases, balance transfers, or both for the first few months of card ownership.
Personal Loans for Business:
A personal loan for business may be an option. Other forms of business financing are unavailable now that the COVID-19 shutdown has impacted your business. Small business owners have plenty of hurdles to clear, and one of the highest is finding funding to restart their business. Banks, credit unions, and online lenders offer small-business loans. But another option that can be faster and more convenient is an unsecured personal loan for business.
A personal loan is a money from a bank, credit union, or online lender that you can use for any number of purposes, including funding a business. Most personal loans are unsecured. This means they do not require collateral, and you pay them back in monthly payments, typically over two to five years.
Your lender has no restrictions against using a personal loan for your business. You can use the money to purchase equipment and inventory, kick-start your marketing efforts, or put it toward other costs you encounter when your business is closed.
Short-Term Business Loan:
0% business credit cards and personal term loans for business because of the shutdown, but if you were an essential business and are still open, you can get a loan or advance against your cash flow. Long-term loans such as SBA 7a, Mid-Term loans, or business lines of credit are hard to come by as banks have raised the bar or stopped lending altogether, but short-term loans are available.
Short-term business loans provide small business owners quick access to working capital to address short-term financial issues. As with a traditional business loan, you typically get the loan funds in a lump-sum payment, then pay it off within one to two years.
These loans are like traditional bank loans but with a shorter repayment term. You will have difficulty finding term loans with short repayment periods from traditional small business lenders. Instead, you will likely need to work with an online lender like BitX Funding to get what you need.
BitX Funding is an online marketplace for small business owners looking to fund a project. We specialize in connecting small business owners with lenders who will compete for your business. We believe small business owners drive the economy and are passionate about helping your company reach its full potential.
You can reach a loan specialist toll-free at 1-800-824-2407 or email [email protected] or apply online here, and we can guide you on which loans are the best fit for your business.
