You’ve heard the stories. The owner of a small business needs money fast, so he or she takes out a quick loan. But then, not long after, he or she gets behind and gets stuck in an endless cycle of massive debt with aggressive collectors calling. There seems to be no escape.
Yes, unfortunately, this does happen to some. Business owners accept loan terms that they haven’t really thought through, and all too often don’t consider the consequences if they get behind. Before they know it, they now have the constant burden of trying to pay it back.
But sometimes, the few bad stories take front and center over the good ones. If you’re responsible and know that your company does and will produce for you, obtaining funding for your advertising campaign could not only be just what’s needed for small business expansion but also one that you can comfortably manage when it’s payback time.
One of the quicker financing methods you may want to consider getting is a business line of credit. Similar to home equity or a personal credit card, you have access to a certain amount of money, but the two distinct advantages compared to other types of financing: interest doesn’t start incurring, and you don’t need to begin making payments on it until you’ve actually dipped into it.
A business line of credit for a small business can be unsecured or secured using receivables or inventory. In addition, it’s “revolving,” meaning you can tap into it again and again. For example, if you withdraw $6,000 from a $10,000 line of credit, you still have access to the remaining $4000 if and when you need it. Moreover, when you pay back the $6000, you’ll have access again to the full $10,000 without needing to reapply. Interestingly, a line of credit usually has lower interest rates compared to other loans. However, if you borrow over your limit or pay late, it usually goes up significantly, as a result.
You can also look into getting a short-term loan for your advertising project. This kind of loan can range anywhere from $5,000 to $250,000, typically has looser qualifications than long-term loans and has a quick processing time once your approved. Compared to other types of financing, though, short-term loans often have higher interest rates and are repaid either daily or weekly.
There’s no doubt about it. To keep a small business flowing and growing, you need to advertise on a regular basis. Contact an online lender today and have your advertising up tomorrow.