Different Lending Alternatives Due to Banks Not Lending
In recent months, businesses have been suffering to stay afloat due to COVID-19. The PPP and EIDL Programs have not been renewed due to conflicts within Congress. Meanwhile, the average small business is suffering from no end in sight. We have discovered that companies turn to small boutique lending shops to provide them the loans to stay afloat. Innovation Commercial Capital has provided working capital, accounts payable, and other lending alternatives to keep small businesses afloat. Our primary concern should be finding the financing that works best for your company.
Quite a few business owners avoid Internet lending, like some horror stories of online financial dealings have gone wrong. It’s important to research the company you’re borrowing from and doing that will show you these lenders are a viable source of capital. The loan amounts are smaller than what you’d get from a bank, which usually makes the processing time shorter and minimizes the competition. If you aren’t looking for a considerable amount of cash, then Innovation Commercial Capital can help.
Merchant Cash Advances
Many business owners learn about credit factoring after dealing with bank loans and wish they’d known of this option earlier. Companies looking to grow or boost their working capital can use merchant cash advances to get an advance on their future sales. The factoring company will buy a portion of your expected business, and then repayment will come through a percentage of your daily or weekly credit card sales. This almost acts like a factored invoice, and if you have the clientele, it’s an effective way to increase your cash flow. Since the reimbursement is based on sales, this lending also accounts for months when business is slower than others.
Specific Item Financing
While most lending alternatives provide the capital you need, another option worth considering is leasing whatever you had planned to buy. If you planned to purchase a commercial vehicle or some office equipment, those are items that can be leased and then either returned when the terms expire or purchased outright for a portion of the original cost. While these options don’t help when you need to cover payroll, paying for a lease is a lot like paying back a loan, and it keeps expensive items off your balance sheet.
Why not contact Innovation Commercial Capital to discover all we offer?