HOW TO GET A LOW INTEREST BUSINESS FUNDING
September 16th 2013 at 9:43pm Published by firstdownadmin
Low-interest business funding options include SBA funding and online loans. You’ll need good credit and strong finances to qualify. As a business owner with good personal credit and strong financials, it’s easier to qualify for cheap financing — meaning you can borrow money at a lower annual percentage cost.
The average cost of working capital on a conventional small-business funding is around 4% to 6%. That said, cost of working capitals will vary across funders, with banks typically offering lower rates than alternative or online funders.
If you’re like most small business owners, your search for business funding is defined by one, simple criterion—how affordable each business funding option is.
If you are in need of a low-rate business funding, you may want to consider the following:
These generally offer the lowest cost of working capitals and are the most affordable for small businesses, but are more challenging to obtain.
Business funding with low-cost of working capitals are almost always longer-term business funding. Which means that, though low-cost of working capital business funding might be more affordable, they aren’t necessarily “cheap” or low-cost business funding. So keep in mind to:
1. Build Your Personal Credit
2. Stay in Business
3. Don’t Wait Until the Last Minute to Seek Funding