If you run a business and have a cash-flow concern, the first thing that may come to mind is to apply for a loan? But, there are many kinds of loans. There are other options as well. Which one is best for you?

Loans in a Nutshell

A loan is fairly easy to understand. Once approved, you receive a lump sum of capital from a bank, credit union, or financial agency. In return, you must pay the principal amount back with interest over a set amount of time, usually in monthly installments. The interest rate may is fixed at the time the loan is created, or it may vary over time.

Types of Small Business Loans

After determining that your business needs a bit of additional capital, these are choices to be made. In actuality, there are several types of loans as well as other funding options to consider. Here are a few loan types that might be useful for your business:

  • SBA Loan. Guaranteed by the federal government
  • Working Capital Loan. Used to fund everyday business expenses like payroll, rent, and operational costs
  • Franchise Startup Loan. Specifically designed for new franchise owners  

Then, there are alternative forms of funding to consider. These include but by no means are limited to:

  • Invoice Factoring. An elegant process by which you sell outstanding invoices to a financing agent
  • Merchant Cash Advance. An infusion of capital taken against your future credit card sales
  • Equipment Financing. Specially designed for purchase or rental, and often not needed collateral  

Partner with Dorra Financial Group

Here at Dorra Financial, we provide useful solutions for business funding needs. We’d love to be your financial partner. Give us a call today to explore the options that would best fit your particular business situation, whether it is a loan or another form of alternative financing.