Financing Options for Funding Your Alabama Business
Finding adequate funding may be the hardest thing you will face when you are starting or expanding a business. It used to be that only well-established companies with strong business credit scores and a history of steady revenue were eligible for long-term bank loans. Today’s financing offer start-ups many more options than in the past. From microloans to short-term loans to business credit cards, you can find the funding you need.
Before you jump online to start looking for sources to your fund your business, it pays to do some homework. Remember that part of a successful enterprise is having the appropriate insurance coverage. The experienced team at The Nowell Agency aids entrepreneurs and small business owners in obtaining policies that protect them when the inevitable strikes. Please talk with us about your liability insurance, worker’s compensation, or other coverage needs.
Financing Options for Your Alabama Business
According to a U.S. News & World Report article, at the end of 2017, only about three-quarters of small businesses found funding appropriate for their needs. It went further to indicate that small businesses are a vital component of the United States’ economic growth. When you need financing, here are a few options you can seek:
- Small Business Microloans: The SBA can help by guaranteeing your bank loan. The repayment terms are generous and often have low-interest rates. For new businesses, an SBA Microloan uses non-profit intermediary lenders. Many of the lenders focus on minority-owned businesses or those that operate in disadvantaged areas. These loans range from $500 to $50,000 and must be repaid within six years. While the loan amounts are not massive, they may give you the boost you need.
- Short-Term Loans: The Internet has provided an enormous opportunity for alternative lenders to offer solutions to small business financing needs. They provide quicker turn times and are less strict in their qualification requirements. The interest rates are much higher with shorter payoff periods, some as little as three months.
- Crowdfunding: It’s not only used to raise funds for a charitable cause, but crowdfunding can also be used to pay for the release of a new invention. There are many niches that you may fit into. It might take a little more legwork as you need to make a compelling case for people to invest in your enterprise instead of someone else’s, but it can be worth it.
- Business Credit Cards: Think of these as very short-term loans that can give you some financial breathing room as you build business credit. The application process can be pretty straightforward with quick approval and no collateral.
Make Liability Insurance the First Purchase for Your Alabama Company
Obtaining financing is only the beginning. Remember that purchasing the appropriate coverage, including liability insurance, gives your Alabama company a leg up on success. The Nowell Agency has helped new and established companies like yours since 1984 attain the right policies at reasonable rates. Get your business protected by talking with us today.