Starting your own company or looking for ways to fuel growth can feel daunting but rewarding when it comes through. While a great business plan, an impeccable strategy, and a desire to succeed remain crucial for new and existing business owners, getting adequate financing to fulfill these goals remains essential.
However, financing through a conventional route can be complicated and drawn out. That said, organizations can also consider private business financing services to help them realize their goals and ambitions.
If you’re a business owner with big goals in 2023, here are some innovative private financing options to create a sustainable path of success for your company.
Term Small Business Loan
A traditional small business loan can be used for a lot of things. Money can be spent on improving working capital, necessary equipment purchases, or even funding commercial real estate purchases. However, these conventional loans are hard to get because of the stringent requirements.
Therefore, you can opt for a term business loan with a private lender. They can offer short- or long-term loans on favorable terms. They have stricter lending criteria, and you can get these business loans in days or weeks. Moreover, you’d also have a lot of flexibility in using the loan proceeds for your business.
Line of Credit
Another private financing option you can use for your business is a line of credit. This is quite similar to a personal credit card or a home equity line of credit. Business line of credit works similarly where you have immediate access to pool funds, and you’re only required to pay interest on the amount you use.
Instant access to these funds provides great flexibility to cover urgent things like extra inventory or meet seasonal demand. It can be a great short-term fix and act as an emergency fund for unexpected expenses.
Bridge Loan
A bridge loan can also be an excellent private funding option for businesses. They can help you stay afloat while you wait for more comprehensive funding to come through, which will be used for further opportunities. A bridge loan can work well if you want to take advantage of a lucrative investment opportunity quickly before it goes away.
The bridge loan proceeds can be used to finance that opportunity, and you can pay back the loan with the proceeds of your actual funding when it comes through. A bridge loan can be repaid anywhere between 3 to 18 months.
Hard Money Loans
Hard money loans are financing options real estate investors can use to fund their commercial real estate projects. These loans are issued by private lenders such as NCC Fund to help investors cash in on a lucrative opportunity.
Unlike traditional forms of lending, hard money lenders don’t determine the borrower’s creditworthiness to give out loans. Instead, they consider the value of the property when making their decisions.
Hard money loans are convenient to get compared to traditional mortgages. Conventional commercial financing can take months to close a loan, making it an unviable option, especially if you want to close a deal quickly. However, you can obtain a hard money loan within weeks, and that too without any issues.
Many private lenders offer flexible terms when giving out hard money loans. For example, you may be able to negotiate the repayment schedule or specific fees that may be impossible to avoid when getting a conventional loan.
Merchant Cash Advances
Another private funding option businesses, especially retailers, can consider is merchant cash advances. The product is made for sole business owners. Small businesses can receive instant financing for a future percentage of their credit card sales. If you’re an online or small retail shop that gets a significant chunk of its revenue via credit cards, then merchant cash advances can be a great option to expand your business.
There are no fixed repayments, as the amount is based on your monthly or weekly credit card sales. It’s a fast-financing option for businesses looking to improve their cash flows or invest in a strategic business opportunity. The payments are directly deducted from your account, which eliminates the occurrence of late payments. However, rates can be high, which isn’t viable for those who don’t receive consistent credit card sales.
Work With Reliable Private Lending Services
Private lending options are only feasible if you work with an experienced, reliable, and professional private lender. If you’re looking for one, check out the products and services provided by NCC Fund.
They have dealt with various businesses operating in the retail, manufacturing, and hospitality sectors. As a direct lender, they provide real estate lending services, construction and development loans, business financing services, and more. Visit their website for more information or contact them for more details.
About The Author
Chris is an experienced finance and investment professional. He has worked with some of the country’s leading investment and financial firms and holds special expertise in private funding, angel investments, venture capital, and more. He loves to write about different finance options and the world of private funding in his free time.
