Best Ways to Get a Startup Business Loanby Oxyzo Financing Smart Financing
No matter how great your business idea is, one essential element of startup success is your ability to obtain sufficient funding to start and grow the business. While many people finance their new companies with their own capital or by borrowing money from family or friends, there are other options available. But startup founders must understand that raising startup funding is never easy, and usually takes longer than anticipated. In this article, we review five key options to obtain a business loan for your company.
How a Startup Business Loan Can Grow Your Small Business
You need to think outside the box when looking for financing for an early-stage business. Although most banks and financial service providers do offer some financing to startups, you are more likely to find success from other sources. Equipment financing is a good example of this. There are some things where you will simply need cash, financing the equipment you need allows you to free up cash for those things you can’t finance. And, because the equipment is often considered the collateral for the loan, if you have a good personal credit score, it’s easier financing to qualify for than a traditional term loan.
Ways to Get a Startup Business Loan
#1: Equipment Financing
Specifically designed to pay for the purchase of equipment and machinery, equipment loans are similar in structure to conventional loans, with monthly repayment terms over a set period. However, the proceeds are used to purchase equipment or machinery. The lending standards on equipment financing can be less strict because your equipment will be used as collateral for the loan. In other words if you default, the bank has the right to seize your equipment to cover the cost of their lost money.
Oxyzo offers working capital credit to procure raw materials and manage your working capital needs. The credit granted is up to two crores. Check out their features and smart financing options.
#2: Business Credit Cards
While many of us think of credit cards as a safe and convenient way to pay for purchases, they also offer access to an unsecured loan in the form of a line of credit. That means business credit cards can be a great alternative to start up business loan. They can also help you get off on the right foot separating business and personal finances and establishing business credit. To qualify you for a business credit card, issuers will generally look at your credit scores and combined income. While they may not require collateral, they typically require a personal guarantee. Most business credit cards have the added bonus of great rewards programs and sign-up bonuses.
#3: Invoice Financing
If you get paid by your customers via invoices, invoice financing is a convenient, albeit usually expensive way to avoid cash flow issues caused by long invoice cycles. This is a speedy option you can get your financing in as little as a day that requires little paperwork.
#4: Venture Capital
Startups seeking financing often turn to venture capital (VC) firms. These firms can provide capital; strategic assistance; introductions to potential customers, partners, and employees; and much more.
Venture capital financings are not easy to obtain. Venture capitalists typically want to invest in startups that are pursuing big opportunities with high growth potential, and that has already shown some traction.
If the collateral is what is limiting you from taking credit for your business operations, Oxyzo is the best choice. Oxyzo offers collateral-free business credit to manage working capital requirements and procure raw materials.
Created on Sep 2nd 2021 06:28. Viewed 286 times.