One of the top uses for business loan proceeds is funding marketing. But however you intend to use the funds, it can be confusing and difficult to tell the different financing types apart. So we’ve compiled some of the top funding sources by type of funding. These companies offer the kind of cash infusion that a successful entrepreneur can turn into a huge marketing campaign that can jumpstart their business. Let’s look at some of the options:
Short Term Cash: These companies offer solutions that are nearly instant, but provide some of the smallest investments and at the highest cost of capital. These can be perfect for the very early stages of a business where money is turning over quickly and the future is still too unstable to justify a larger or longer term investment. Companies that specialize in this market include:
- Behalf: Free credit line up to $50,000 with improving terms as you repay the loan
- Kabbage: Working line of capital with 24/7 access to up to $250,000, accessible in just minutes
- Fundbox: Invoice financing. Specifically designed to repair cash flow deficiencies and give your business the time it needs to grow
Medium Term Loans: These offer a much larger investment to start your business from the ground up with a significant infusion of marketing awareness.
- Bond Street: $250,000 loans and up to $500,000 in credit lines can pay for a serious media campaign
- Lighter Capital: Innovative business financing without giving up equity, board seats, or personal guarantees.
- Lending Club: Funding within a few days, with no collateral required for loans under $100,000
Crowdfunding: The explosion of crowdfunding over the last few years has opened up opportunities that would have seemed impossible ten years ago. This method offers huge advantages, including a very low risk and acting as a strong positive PR move all on its own. However, to truly capitalize, some amount of existing traffic or audience does need to exist. Crowdfunding can level the playing field and allow a very small start up the opportunity to operate with a significant budget
- Kickstarter Entrepreneurship-minded platform. Backers contribute to projects with a deliverable reward. You can, on many levels, view Kickstarter as a pre-sales mechanism.
- Indegogo Similar to kickstarter, but provides you with an opportunity to choose between receiving funding as it comes in or waiting to see if you hit your target.
Long Term Loans: These are the sort of loans an entire business model is built around. They will be the largest available investment of cash and will determine the course of a business over years. Nonetheless, the largest return on investment is still to allocate as much as possible from one of these loans into an effective marketing budget.
- SBA.gov Free business counseling and resources, including referrals to brick and mortar community lending options, which are slower but more personal.
- SmartBiz: Online lender offering instant decisions on SBA loans up to $300,000.
Matchmakers: Platforms where you can compare and contrast business finance offers with a single application.
- Lendio Free and simple lending marketplace with access to 75+ business lenders.
- Fundera Safe, friendly, and free way to find your lowest rates on small business loans, guaranteed.
Business Credit Resources: If you don’t have the credit to get the loan you want, check out some of the options below. Business and personal credit are related, but different.
- Nav.com: Subscription based site that monitors personal and business credit scores. Calculates a SBSS score, used to qualify for the SBA Loan.
- Experian Business Credit: The top business credit bureau. Make sure your information is correct.
- Dun & Bradstreet: DUNS numbers are essential for business financing, and a large component of the Paydex score. Listing your business is free, but you’ll have to subscribe to premium products to
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