Find Small Business Funding Options in 2021
- May 25, 2021
- Written by : Carl Eschenburg
We are all navigating through what seems to be one of the most difficult times weâ€™ve faced as business owners and entrepreneurs.
With this comes one of the most prominent trends in the financial industry at this time. Policy makers are keeping a close eye, more than years past, on the needs of small businesses. They are specifically watching how we spend our money: when we spend it, what we spend it on, and why we spend it.
What they are finding, however, is that most are more frugal with finances than expected; not everyone or every business can afford to allocate funds on any task, item, or other besides exactly what they truly need.
In fact, according to a survey conducted by MIT Management, small business revenue and business ownersâ€™ personal consumption both dropped around 40% in March 2020, the beginning of the pandemic, compared to one year prior.
One month later, in April 2020, we saw even bigger, more impactful changes. The number of self-employed individuals dropped 20.2% as compared to the year and exact month before.
Now that we are entering into a new season, possibly one with less repercussions from the pandemic we are all facing, business owners are starting to once again build, maintain, and grow. The question is â€œhow will they grow amidst their struggle with finances and misconstrued guidance in the industry?â€
The easy answer is small business funding, and thatâ€™s where we come in. At REIL Capital, we have experts ready to guide you through the entire funding process from the point of application to the last day you choose us to help. Do you need a financial advisor?
How to Find a Financial Advisor
Finding a quality financial advisor is as simple as talking and comparing. It is easy to determine whether or not you and the potential advisor would work well together, and it is just as easy to determine whether or not the advisor is educated, willing, and involved with your industry.
Letâ€™s break down each: education, willingness, and involvement.
Your financial advisor should be educated to the utmost power on your particular choice of funding and/or your funding needs [to then suggest options if necessary].
Next, your financial advisor should be willing and able to help and guide you throughout your funding process. Does he or she seem aligned with your values, portray an inviting personality, and offer open and honest communication? This is key; if you are looking for transparent funding options, see here.
Last, but most certainly not least, your financial advisor should be knowledgeable and/or heavily involved with your industry. While applying for funding through a lender that has never dealt with your industry may not seem like a poor choice (and it may not be), it is still very clear that a lender who deeply understands your industry could be more beneficial to you now and to your business in the long run.
How to Find Small Business Funding Options
Once you have secured a trustworthy, quality lender, you will be on your way to choosing a smart and reliable business funding option.
The next step is to decide, with your lender, which funding option best suits your business. If youâ€™d like to take a look at all of your business financing options, beyond the ones listed below, please contact a financial specialist for help.
A few of the more common small business funding options are:
- SBA Express Funding: this kind of funding is partially guaranteed by the Small Business Administration. We offer long terms and low interest rates, so you can grow your business, increase working capital, purchase equipment, or refinance existing debt.
- Term Funding: some ways of funding havenâ€™t changed over the years, including term funding; there is not a need to alter this traditional option, as it provides you with a lump sum of capital with an interest rate to be paid back by the borrower over a fixed amount of time.
- Merchant Cash Advance: this is a quick, easy, and very popular option chosen often by small business owners who are in need of immediate working capital to continue or maintain day-to-day operations. Your business could receive a lump sum between 80-120 of your monthly revenue, so long as you agree to repay the amount using your daily credit card sales or a fixed remittance from your bank account.
- Invoice Financing: invoice financing forwards capital to you based on your accounts receivable. This means that if you have money scheduled to come in that you have not received, the amount can be given to you ahead of time. No more waiting for customers to pay you.
- Equipment Financing: new equipment such as technology, work vehicles like semi-trucks, and more, is expensive. Equipment financing gives businesses the opportunity to put up 100% of the purchase price without second thought about affordability or how the purchase would negatively affect your day-to-day operations. In addition, this way of financing can also allow you to place a lien on already-owned equipment so you can recoup up to 100% of the purchase price.
If after comparing the above options you still do not feel like you have found your businessâ€™s best fit for funding, weâ€™d love for you to contact us. Funding in 2021 is different from years past and is still changing. We know you have questions, and we know we can help.
COVID-19 Funding Resources for 2021
In the meantime, see some of the COVID-19 resources provided to small business owners by the SBA to help you through this pandemic:
- Paycheck Protection Program
- COVID-19 Economic Injury Disaster
- SBA Debt Relief
- Restaurant Revitalization Fund
Regardless of what kind of funding you need, or the reason you may need it, our team of financial experts is ready to help guide you through the process, step-by-step. We are educated, willing, and involved in your industry. Give us a call!