Can I get Business Loans with No Money Down?
Whether your business is new or old, at some point you are bound to need funding. But many businesses wonder where that funding is going to come from. The regulated world we live in has many funding players, but they all have different rules. Before you set your heart on a specific funding source, you should be aware of their requirements. Some businesses are looking for business loans with no money down, while others are looking for no credit check loans. Asking yourself what you are looking for from a provider will be key to landing the right source for you!
8 Questions to Ask Before Selecting a Funding Provider
- What type of funding source am I looking for?
- What type of repayment plan do I want to be on?
- How much interest am I willing to pay?
- Am I willing to give up equity in my company in exchange for the funds?
- How long do I want to have to pay back the loan?
- How much am I willing to put down?
- Can I afford to have a credit check run on my business and personal history?
- Am I willing to put up personal or business collateral in exchange for the funds?
As you start to answer these questions, you will gain a better understanding of what you are willing to give up in order to gain access to funding. If you aren’t willing to put any money down, you are going to have to look for business loans with no money down. One option could be a loan that holds physical collateral against it vs. asking you to put up a given percentage of the loan in cash. Many funding providers understand that when it comes to businesses, not every business has a lot of cash lying around. But when it comes to a traditional bank loan, a bank is going to want you to have at least some “skin” in the game. Most often this will be in the form of a down payment or collateral.
We know that bank loans aren’t an option for some people, so if you are searching for business loans with no money down or collateral, it is important to consider alternative funding providers. These are a great option because they often can provide business loans with no money down easily and with limited questions. Alternative funding providers will not necessarily loan you money in the traditional sense. They may advance it or take a percentage stake in your company in exchange for the funds.
What options do I have for business loans with no money down?
- A Venture Capitalist or Angel Investor
- This is a great option if you are looking for an experienced partner to help you grow your business. But you have to be willing to give up a portion of something in the future. This could be a portion of your sales revenue, a percentage of your company’s stock, etc. Make sure you weigh the pros and cons before selecting this route.
- Friends and Family
- When in doubt, your friends and family are always a great option to consider; however, it can get sticky if you have already used this method. Never forget that by borrowing from someone you see on a regular basis you will have to live with the consequences should you not be able to pay them back. Maybe that means avoiding Christmas dinner for years to come or not being invited to the neighborhood block party. Tread carefully with the people with whom you have a relationship with, we have seen these situations go very badly.
- Merchant Cash Advance
- What is great about a merchant cash advance is that you are not locked into a monthly payback schedule. Instead, it will be a fixed daily percentage of your credit card sales. For those looking for business loans with no money down, this is an option to consider. Although it is not a traditional loan in the sense, it is an advance of money. With eBusiness Funding, you can get access to the cash you need in just 3 days if you meet our simple requirements.
Do you think a Merchant Cash Advance is the right option for you or want to learn more?
Contact eBusiness Funding now at 305-985-6593 or complete the contact form on this page now. We are here to answer all of your questions even before you apply! Our #1 goal is to see your business succeed.