As a business owner, choosing the right financing option for your company can feel daunting. Let’s talk about some ways to narrow things down.
First, think about what kind of loan or non-loan funding you want. Fundbox, for example, offers just lines of credit (LOCs). LOCs offer revolving financing that you can use over and over again, making them great for day-to-day cash flow needs. But if you need cash while you wait for customers to pay their invoices, invoice factoring might be the better option. When you know the loan type you want, you can start looking just at lenders who offer that type of funding.
To further narrow down your options, look at your qualifications. What kind of revenue does your business earn? How long has your business been around? And how high of a credit score do you, the business owner, have? These all influence what kinds of lender and loans you can qualify for.
You can also think about factors like these:
- Financing costs (including interest and fees)
- Application approval timeline
- Funding timeline (when money appears in your bank account)
- Repayment term (how long you have to repay your loan)
So if, for example, you need funding ASAP and you can afford to pay a little more, you’ll know to focus on lenders that offer same-day funding rather than lenders that offer the lowest loan fees.
Put simply, there are plenty of ways to evaluate potential lenders and loans. Before you know it, you’ll find the perfect financing option for your business’s specific borrowing needs.