Studies have recently indicated that only 0.07% of businesses are known to receive VC, which is also known to be a highly publicized equity financing sector. So, you might be wondering how the rest of the percentage of businesses can obtain their capital, used for growing their business. As per the data from the Small business administration, small business owners are most likely to borrow a lump sum amount of money in the business loan outstanding. They are even known to borrow $422 billion in the field of credit from some of the financial institutions. The rest is basically a mix of proper sources. This might give rise to debt among some of the popular variations of financing. Among the available lot, accessing seems to be the most promising advantage of the field of debt financing.
Several forms of debt financing
There are multiple forms of debt financing available. Some of those are small business credit cards, lines of credits, term loans and even merchant cash advances. You can even explore the options for the available debt financing and get to select the best matches, which can work well with the unique need of our chosen project. Long term loans are term for those long term growth plans. Some examples are hiring full term employees or trying to open new retail space or office. The line of credit is always the best option when you are looking to cover some expenses, which are to be repaid within 1 year.
Dent financing advantages
There are certain business routines, where you might think about procuring money from the investors. Well, the best art is that you don’t have to repay the amount you own from them, but that is not always the best side of the story. Instead of asking you to repay the amount, you once took from them, the investors will ask for a share of your business venture. So, you are not going to have your ownership tag when you have taken equity financing and have to work with the investors for long. This is not the case with debt financing.
Get total control over business
Debt financing is the ultimate way to take total control over your brainchild and without the need of sharing it with anyone else. That way, you have to mark for the time, when you have to pay the money back, and options are likely to act in your favor. You are always going to take proper control over business, which is suitable as per the client’s needs. Just know more about the packages and options are suitable enough for your needs now.
Going for the craze
The market has mixed emotions when it comes to business financing. Some are fan of equity financing and others are more noted to work under debt financing structure. You should not always follow the craze and look for the option, suitable to match your business. So, the next time you are trying to get along with the best sources, ensure to visit here and try to judge your business on its basis first.