An SME Loan or small business loan and can be fairly elusive if you have been searching with your typical high street banks. You may have already tried and found that at best it would be a secured line of borrowing (secured against a personal or business asset such as your home or business premises). The bottom line is there are new funding options on the block, lots of them too.
A great website for a range of SME funding options is Capalona. Multiple financial products are available to small and mid-size enterprises.
One product which links in with us is a merchant cash advance otherwise known as a business cash advance. If your business takes credit and debit card sales and you turnover more than £2500 per month on card sales then you may qualify for a cash advance.
Business cash advance – the perfect SME Loan
It is unsecured finance and doesn’t have a requirement for you to put a commercial or personal asset against the loan for security.
It’s totally flexible as it run’s in line with your cashflow.
Unlike other types of commercial finance where you repay a set amount each month, a cash advance repays when you make sales on your credit and debit card sales. So if your sales are low your repayments are low giving your business the financial flexibility it needs.
What about SME Invoice Finance?
If your business sells to other businesses you will no doubt raise invoices as and when you make sales. The frustrating aspect with many SME’s is that businesses tend to slow pay after agreed terms. This means your valuable cashflow is tied up for at least 30 days or more.
This can be problematic if your business has bills to pay. Have a look at this link to understand how you can unlock cash in your unpaid invoices. Up to 90% can be released by the invoice finance company.
SME Loans are usually for established businesses. So what about startups?
For startups, you have a whole world of crowdfunding websites to choose from. Each one has slightly different unique advantages and disadvantages in what is on offer but the outcome is very similar. Peer to peer and crowdfunding sites are a great opportunity for new startups and business projects to get off the ground. Often backed by many small investors for a future return (ROI) on that investment. This can be financial or in some cases can be product or service driven.