Fixed Funding vs. Spring Funding

In the world today, there isn’t a scarcity of options for acquiring funds and finances when it comes to small business owners. Some institutions grant you quick funds with repayment terms at a fixed cost of working capital (fixed funding), while others have flexible policies where the funding is given to the businesses at a variable cost of working capital (spring funding).

There are several differences between fixed and Spring Funding to eliminate all the misconceptions. This article would cover each and every part to provide you a clear picture of the differences between fixed funding and Spring Funding.

Fixed Funding vs. Spring Funding

Fixed Funding for Business Funding

One of the most significant advantages of having fixed funding for your businesses is that fixed funding doesn’t require any changes or any unfortunate surprises. There is just only one flat cost of working capital that you need to pay.

Fixed funding is just like any other fixed capital cost funding, including mortgage funding, student funding, or any personal funding. The working capital cost at which you pay in fixed funding for your business funding will not change in its entire process of the funding repayment. It’s immune to market fluctuations.

Summing up, fixed funding has a fixed cost of working capital for the entire lifetime of the funding repayment.

It doesn’t have any effect due to market fluctuations.

No Surprises. Just a flat cost of working capital.

Spring Funding Business Funding

Spring Funding is the business funding with fluctuated cost of capital that meet the requirements and funding objectives of your business enterprise.

Spring Funding business funding are a lot different as compared to fixed funding business funding with flexible cost of working capital. As they are not much affected by the market fluctuations as much as by the terms and conditions of a given business funding.

Although Spring Funding for a business is subjected to change depending on the specified funding agreements. Nevertheless, business enterprises still have as much if not more have a say about the interest they have to pay for the Spring Funding.

Resulting in the lower overall cost of working capital as well as lower cost of working capital as compared to cost of working capital that are subjected through fixed funding.

Furthermore, Spring Funding offers more flexibility to the business enterprise over how much and how often their funds can be utilized, enabling them for more convenience as well as rapid business growth.

Business That Use Fixed Funding Funding

  • Honest and straight-shooting business owners mostly use these.
  • The business enterprises that are not fond of any unfortunate surprises.
  • For those business enterprises that have already planned how much working capital they require to raise funds for their particular goals. Moreover, they also planned out how much amount they would be able to repay in each cycle with a smile.

So, if you have laid out all the planning as to the amount of funding you need to spend while analyzing that it won’t disrupt your cash flow by repaying a specified amount, then fixed funding is the ideal option for your business growth.

Apply Now For Small Business Funding

Business That Use Spring Funding Funding

  • Ambitious and insatiable business owners mostly use Spring Funding.
  • The business owners who are looking to snowball without any delay or hesitation.
  • Some business enterprises act faster than their competitors in order to steer their businesses for growth and prosperity.
  • A piece of equipment needs repairing; few of the staff just quit, and the ceiling is leaking – but your vendor offered a massive discount on an inventory which you have set your eyes on for ages.
  • For those business owners who are always looking for various ways to grow their business and always in dire need of additional funds pronto. If this is you, Spring Funding is what you’re looking for.

However, there are numerous, if not all, business owners that don’t really know how much funding they need for their working capital even before applying.

Therefore, most of them wind up applying for more or less when they receive the funds.

Spring Funding offers flexible repayment, which are great for ensuring that business enterprises are capable of funding no matter what obstacles of growth or opportunity come their way. While also ensuring that they only make the payment for the exact funds, they are required to invest.

Types of Fixed Funding for Your Businesses

The ideal option always depends on the present financial condition of your business enterprises. Nevertheless, here are some of the types of fixed funding for your business owners.

SBA Funding – Ideal for well-established and thriving business enterprises.

Traditional Term Funding – Ideal for business enterprises that have a sound credit score.

Equipment Funding – Ideal for any business enterprises that require business equipment.

Short-Term Funding – Ideal for business enterprises who less-established with poor credit scores.

While the fixed funding cost of working capital will not change when you start receiving capital, however, they might change outside of your funding process.

For instance, the fixed prime cost that SBA funding adhere to has changed several times significantly over recent months.

So, to prevent paying more than what the decided amount for fixed funding funding, you need to take consultation of a professional financial advisor.

We at First Down Funding have the utmost expertise in guiding and making your financial plan for fixed funding a breeze. Get in touch with us today, and we will all your financial plan laid out for you.

We Provide You Fixed Funding in Three Easy Actions

You can give us a call at (833) FDFUNDING or fill out this online form.

1- Apply for the process that would hardly take about 10 minutes of your time.

It is entirely up to you how you want to provide us all the necessary information in getting your fixed funds.

2- We will evaluate the possibilities for you just within 24 hours.

To select the optimum offer for your business, our expert financial advisors will be in touch with you.

3- You will get your well-deserved funds within 48 hours.

After that, just check your bank account with funds as soon as in 24 hours.

Types of Spring Funding Business Funding

There are mainly two types of Spring Funding, i.e., Business Line of Credit and Merchant Cash Advances that are quite popular over recent years. Because they provide greater flexibility over fixed funding as well as they also have a lower overall cost of capital in the long-term.

The cost of repayment of these two Spring Funding depend on the particular type you look into.

Business Lines of Credit:

This isn’t really a “funding” per se; however, it totally works very much the same because you borrow a specified amount of funds that you are liable to pay them back in a specified period. The only difference is how much and how regularly you are bound to pay for these funds.

While you do have to pay back the specific amount of borrowed funds from business funding no matter the amount of funds you invested in your business. However, having a line of credit, you are only obliged to pay for funds that you invest.

And any funds that you haven’t used them yet, you will not be liable to pay them. They will remain available for you to use.

So if you need a piece of machinery, simply withdraw your funds from the funds available and only pay back for what you owe. If you don’t need anything, then you don’t have to pay a single amount.

Apply for a Business Line of Credit

Merchant Cash Advances (MCAs):

In this type of funding, you receive a lump sum amount, which is in advance of the part of your customer’s debit and credit sales. The cost of repayment of the funds will be taken from your sales and match the amount of sales your business makes. Merchant Cash Advances offers a very flexible cost of working capital funding option for all business owners that have fluctuating or seasonal sales. MCAs policy is straightforward, the more you make, and the more is taken from your customer’s sales and vice versa.

So, goodbye to all the cash flow burdens that come with the market fluctuations and changing seasonal demands.

Apply for Merchant Cash Advance

are you looking for a working financing?

We Help Small Businesses With Working Capital Funding For Short & Long Term Projects

Learn more

Fixed Funding vs. Spring Funding: The Bottom Line

The bottom
line is, there sure is a clear picture as to whether business funding with fixed
or Spring Funding cost of working capital would be optimal for your business.

you probably need to do a lot of thorough and extensive planning in order to
find what your business needs.

We at First
Down Funding knows all the hassle of getting funds from anywhere. However, we
have a pretty straightforward and simple policy to execute the funding process.

If you do need assistance in deciding what’s best for your business, then First Down Funding has a team of experienced financial advisors who are ready to provide you with a free consultation at (833) FDFUNDING.

And if you
already know what you’re looking for and well-prepared to get funded within just 48 hours, then fill out our online form.
Experience the prompt service of fixed or Spring Funding with the cost and terms
that you want.

The PlayBook by First Down Funding
Overview, Calculations and Case Study