Operating a small business can become difficult at times, especially in an unpredictable economy. Local businesses are struggling to remain open in the age of E commerce. Shoppers are more likely to go online for items they want and need due to convenience and low pricing. There are some options open to small business owners that can help maintain the business.
The Small Business Administration (SBA)
The SBA is a government agency designed to help small businesses thrive. It offers small business advice to people considering a small business and those operating one. Help with business planning, such exploring the market, devising a complete business plan to submit to investors and bankers, and anticipating all start up costs, is available free of charge.
The agency also has a loan program for small business owners to meet expenses, to expand the business, and to update equipment or technology. It is often easier for owners to get loan approval through SBA than through a traditional bank.
Banks and credit unions will also offer small business loans. Approval is based on the feasibility of the business plan, the amount of start up funds already gathered, and the credit history of the owner. Approval will take a week or more and there will be interest to pay.
The fastest way to get cash to keep the business going is invoice factoring. This option requires no credit check of the business and no interest rates. The application process will take one hour and approval can be granted in as little as twenty-four hours.
The factoring company purchases invoices at eighty to ninety-six percent of the face value. The business gets the cash without waiting one to three months for payment. The invoice amount is then collected by the company.
A small percentage, typically one to three percent, is kept as a factoring fee and the rest is forwarded to the business. Factoring can be ongoing, or utilized as a one-time transaction to help with immediate expenses. Many businesses of all sizes in every industry rely on the factoring process at some point to improve the business. Fins a factoring company that specializes in small business factoring for the most options.