That way, you can make an informed decision when pursuing a little extra cash cushion for your company. This is generally the first small business financing option for most people who find that they don’t qualify for credit cards, microloans, or any other type of bank financing. Online lenders have become a popular alternative to traditional business loans. These platforms have the advantage of speed, as an application takes only about an hour to complete, and the decision and accompanying funds can be issued within days.

  • Its equipment financing terms are also flexible, lasting one to 10 years.
  • Finance companies — most finance companies offer finance products via a retailer.
  • Your ability to meet customer inventory demands directly impacts your bottom line.
  • Repayment may be easier over time because there is no fixed monthly amount to be paid back, rather repayment is based on the percentage of sales.

Customer financing solutions break down larger purchases into manageable payments, which widens the pool of potential customers available to your business. To help you decide if it’s a good option for yours right now, we’ll break down the pros and cons of offering consumer financing. We’ve partnered with Wisetack to make the process of providing monthly financing options to your customers fast and easy.

I. Individual Equity

When evaluating offers, please review the financial institution’s Terms and Conditions. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion® directly. These institutions, in particular, are a great resource for small-business financing because they often have a strong interest in economic development in the community.

Small Business Customer Financing

Working capital is the money you have available to run your day-to-day operations. This includes inventory, payroll, rent, utilities, and other expenses. A superior product or one that delivers higher value will attract more customers. One way to ensure this is to hire individuals with relevant experience.

Top Financing Options for Small Businesses

With third-party consumer financing, you don’t need to deal with payments. Once a job is done, you can focus on the next one instead of chasing down payment—and focus on growing your business. Once your customer is approved for finance and has agreed to the conditions and payment terms, it’s your time to shine. You provide the service the customer ordered, whether it’s a new HVAC install or a retaining wall.

How do I repay this loan?

Banks have noted in liaison that this is because it is often difficult to distinguish between the personal and business finances of small business owners. Legislation to enact removal of the rules is currently being considered by parliament. Bank loans are a good option for businesses that have a strong business credit history and can offer collateral to secure the loan.