Commercial lending options are followed by different level of risks. Sometimes, you are not sure what option needs to be considered for financing your venture; especially if it is of importance to your business.
Financing is usually visualized with bank loans and credit card payments. These are necessarily traditional types of lending and most of the people are familiar to these methods only. On the other hand, traditional methods are not the only way out for people with entrepreneurial engagement.
Irrespective of the methods chosen, the risks involved in commercial lending options are high. If you feel trapped in choosing the traditional lending options, there are many substitutes and inexpensive methods of financing that you can use.
Credit cards: Sounds insane when you think about the interest rate, isn’t it? But it can be one of the most secure options for financing, depending on investment you need. If your commercial lending is small, credit cards are secure. Many of them charge 16% APRs and is quite reasonable when a lender is demanding 40% APRs.
PayPal working capital: Yes it exists! Many people aren’t familiar with it though. Rather than dragging you to conventional methods of checking credits, they examine your PayPal’s sales history and can lend you up to 15% of PayPal sales. PayPal works on simple process of taking a cut from the daily sales of your account.
Business line of credit: It is another secure option to minimize the risk and interest on your commercial loans. The interest is only applicable to the money you have used but you will have access to the money you need. It can be a life saver in case of unexpected expense.
Square Capital: It is an efficient option for retail businesses as they offer commercial loans for smaller businesses. Square Capital go through your past sales history to identify the limit of approval and like PayPal, makes necessary deductions from your sales on daily basis.
You need not to worry if you are bringing a new idea. You can think out of the box especially when you are sure about your goals. So when traditional commercial lending options are not workable, go for the nontraditional ones.
Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.