In the midst of the pandemic, small business funding needs were a hot topic. Lots of information was available for business owners in need of additional capital to weather the storm and uncertainty. As the economy attempts to bounce back and transition out of the pandemic, many of those small business owners are still looking for cash solutions.
However, now that the – unsatisfactory for many – Paycheck Protection Program (PPP) has ended, many are struggling to find the capital necessary to recover and grow. The biggest obstacle today is feeling like “just a number”. Big banks are flooded with applications for funding. Business owners are struggling to secure funds in a realistic timeframe for the amount they truly need.
If you’ve found yourself in this exact situation, you’ll be glad to hear you have other options. In fact, some of them may turn out to be a better source that suits your company’s specific needs. Here are a few sources to consider:
1. Small, Local Bank
If you’ve had little to no luck with the big banks, you should see what your regional and community banks can offer. Small banks are often able to offer low interest rates, long terms and high loan amounts. You also enjoy a more personalized experience and customer support. Depending on the bank, their process may also streamline decision making.
2. Nonprofit Lenders
Nonprofit lenders are often overlooked when it comes to funding. Business owners tend to think of big banks and SBA loans when they need to find a funding source. However, nonprofit lenders and community development financial institutions (CDFIs) are also viable solutions, especially if you’re in need of a smaller loan. These organizations are also known for being great options for underserved businesses like women-owned companies.
3. Online Lenders
Thanks to technology, online lenders have created a streamlined, unique funding experience. They have been able to provide services at speeds other lenders are unable to match. While traditional lenders may offer lower interest rates than online lenders, business owners have found these customized cash solutions, and the speed in which they can secure their funds, incredibly valuable and worth paying a little more for.
Are you considering online financing options, but unsure of where to start? The key is to make sure the provider you choose understands the challenges you face, your business type and industry. Do they have years of experience in helping small businesses like yours thrive? The second step is to ensure the cash solution you choose fulfills your short-term needs while safeguarding your business’ future growth.
If you’re still looking for cash for your small business and need help getting started, contact our team of experts here at firstamericanmerchant.com.Get Started Now