According to the most recent data from the California Employment Development Department, there are more than 1.2 million firms in California.
Of course, not all these businesses are the same. Some organizations are bigger than others. Some have an impeccable financial track record while others have a checkered credit history — or no credit history at all. Luckily, at Gellyfish, there are options for everyone.
Conventional Loans
This may be the right financing option for you if you have a solid credit history. As the name suggests, conventional loans are what most people picture when they think of a business loan. Here, a financial institution lends you money based on factors such as your credit history and assets. Then you repay the amount you borrowed on predetermined (usually monthly) installments.
Choose a conventional loan if:
- You have good credit.
- You have been in operation for a good number of years.
- You want to leverage your good credit to get low rates.
SBA Loans
If your credit isn’t great, don’t worry. There are more options beyond conventional loans. SBA loans are loans partially guaranteed by the Small Business Administration, a government agency whose stated goal is to help Americans start and grow businesses. Having the mighty backing of the U.S. government means that SBA loans feature lower rates and longer terms than other loans. The two most popular SBA lending programs are 504 loans and 7(a) loans.
Choose SBA loans if:
- Your credit history makes it difficult for you to qualify for other loans.
- You need to purchase land, buy major fixed assets, get working capital, or buy supplies/materials.
- You want to take advantage of low rates and long repayment terms.
Bridge Loans
As a businessperson, you know that there are situations where you just need funds fast. in those situation, a bridge loan is usually the answer. This type of loan is often used in real estate when you need to buy a new property before selling the one you already have. More generally, a bridge loan is useful whenever you want to take advantage of a time-sensitive offer while you work to secure another long-term financing solution.
Choose a bridge loan if:
- You need funds fast.
- You can repay the loan within the short term.
- You are comfortable with a rate that’s higher compared to other types of loans.
Revenue-Based Loans
When you have a great business idea but your credit doesn’t work in your favor, revenue-based loans may be a total game changer. Here, you get money based not on your credit history, but on your future revenue. You get the funds to move your business forward, and then you repay that amount (plus a fee) with a certain percentage of your company’s revenue.
Choose a revenue-based loan if:
- You you don’t have a long credit history
- You don’t want to give up ownership of your business
- Make the repayment process less stressful (you pay a percentage of your revenue, not a predetermined amount).
Gellyfish Commecial: Facilitating Commercial Cash Flow
If you need financing in California, or anywhere in the United States, Gellyfish Commercial can help.
Contact us today by email (info@gellyfishcommercial.com), telephone (877-800-4493), or social media (Facebook, Twitter, LinkedIn), to schedule a free consultation or to learn more about our financing solutions.
