According to the U.S. Small Business Administration (SBA), about half to two-thirds of small businesses seek financing from a number of sources, including non-banking institutions.
In recent years, a number of alternative business loans have become popular for small businesses interested in accessing extra capital. Check out this list of cash advance small business loan sources.
Kabbage: Lines of Credit
Kabbage provides working capital online. It offers working capital or small loans payable over six months. The average line of credit is between $2000 and $100,000. Unlike traditional lenders, Kabbage approves loans by looking at real-life data, not just the credit score. It’s worth mentioning that the approval process is quite transparent and takes only a few minutes.
On the flip side, however, you need to pay back your loans within six months.
To be eligible, you need to be in business for one year or more, and make over $50,000 a year in revenue. To date, Kabbage has funded over $1 billion to help small businesses grow.
SnapCap: Unsecured Business Loans
SnapCap offers unsecured loans of between $5,000 and $600,000 to small businesses. Unlike traditional lending that requires collateral to obtain financing, an unsecured loan — also known as a merchant loan — uses other factors to judge a loan application. These may include your credit score and sales performance.
First American Merchant: Merchant Cash Advance
First American Merchant (FAM) offers a merchant cash advance program best-suited for businesses that may not want, or cannot qualify for a traditional loan. The funds can be used to expand, renovate or reduce debt.
The company has a simple and short application process. Once you contact them, you will be required to provide some basic information about your business. Based on your inputs, you will receive a preliminary funding amount. If you are fine with the estimate, you will be required to provide more details about your business. The approval process takes about 24 hours and funds are made available within just three days.
Biz2Credit: Online Loan
Biz2Credit is an online marketplace for small business funding. Its proprietary platform, serving more than 1.6 million users, connects borrowers to sources of capital based on each company’s unique profile.
Biz2Credit enables businesses to secure loans from $5,000 to $1 million. The application process is fairly simple. You have to complete a single application to get the best financing options available for your business.
A key highlight of the Biz2Credit platform is that it provides customizable financing programs for businesses that do not have a great credit score.
The only downside is that the funding process may take up to four weeks.
To be eligible, you should be in business for at least two years, be profitable and have a solid credit history. Startup loans are also available to entrepreneurs who are in the early stages of their ventures.