As of 2021, there were 32.5 million small businesses in the U.S., which represented 99.9% of all the businesses in the country, according to the Small Business Association (SBA). Access to more capital can help you grow faster. How can you raise more capital for your small business?
Seeking Funding for Your Small Business
When looking for business funding, it’s essential to consider not only the cost and convenience but other factors as well. Specifically:
- Figure out which financing solution best fits into your long-term goals, and choose the one that’s associated with minimum risks.
- Take into account factors such as the size of your company.
- Consider your growth plans.
- Determine the amount you’d like to receive.
If you’re just starting your company, you’re likely to encounter challenges when applying for traditional financing options. Traditional banks usually want businesses to be in business for two years.
If you’ve been running your company for two years or more, it’ll be easier for you to get approved for financing. Things will get even much easier if you have good credit. For example, an SBA loan backed by the government can be one of the options to consider.
Another option is to turn to investors, such as angel investors, venture capitalists, or try crowdfunding. What if these aren’t your preferred options and you can’t qualify for an SBA loan or other traditional financing solutions? Let’s further discuss what you can do.
Capital for Your Small Business From an Online Lender
One of the best options for both low and high-risk merchants is to turn to a reputable alternative online lender like First American Merchant for capital for your small business.
FAM boasts an A+ rating with the BBB and is an award-winning business finding provider in the high-risk field. FAM offers the cheapest possible rates and the most advanced services in the industry. First American Merchant is also a reputable payment processor.
During the period from March 2020 to February 2021, 200,000 establishments shut their doors because of COIVD-19, according to the Federal Reserve. It’s more critical than ever to know how you can fast raise money to overcome your financial challenges.
On the other hand, 2020 also witnessed a flood of new business applications. Almost 4.3 million business applications were filed. That number was up 24% from 2019, as the Census Bureau’s Business Formation Statistics revealed.
Raising Capital for Your Small Business
To grow your business, you should have enough capital on hand. Thankfully, there is more than one option to use to get access to the necessary funds. One of them is turning to a reputable alternative online lender in your field.