Most small businesses desire to access working capital quickly and easily without having to put something down. Sadly, this is not an option in most cases. Most lenders want collateral to justify the risk. Additionally, lenders want to ensure that you are resolute while turning away fraudsters and jokers.

Unfortunately, not everyone has the money to put down in order to acquire the funds they need. Does that imply that you can’t get a loan without putting money down? No. If you can’t afford a down payment, there are different options to explore. Here are some of the available options:

Start with Business Term Loans

Term loans are the most common loans for small businesses. They permit a business person to borrow vast amounts of money with a longer, fixed repayment period. For term loans, once a lender determines you have a good credit score, healthy revenue, and several years in business, the lender will not require you to put money down.  Interest rates for term loans are lower than other financing options, making then an ideal option for those who qualify.

Explore Business Line of Credit

Business lines of credit are a fantastic choice for business financing, especially when you don’t have money to put down or collateral to offer. It functions similarly to business credit cards. Based on your qualifications, the lender will determine what amount to allocate you. When you need cash, you can then withdraw any amount up to the maximum allowable limit.

After borrowing, you will make weekly or monthly payments for the loaned money plus the interest. When you pay back the money, it accrues back to your credit, and you can use it again after you’ve offset the loan amount. Its interest rates range between six percent and twenty-four percent.

You Always Have Invoice Factoring

In invoice financing, you sell off your unpaid invoices to your lender. The lender will then fund you ninety percent of the total value in the invoices. The lender withholds fifteen percent as a fee and costs for processing your loan.

The invoices are your collateral, and therefore down payment is not required. Business financing is a fantastic option for businesses with long payment cycles and needs cash. Invoice financing is only applicable for enterprises that are already up and running.

Consider Revenue Advance

With revenue advance, your business pays back the received loan product via a percentage of future sales. You will have to set aside a specific percentage of future sales until you clear the advance. Therefore, it is a straightforward way of getting funding with no money down. It is a quick type of financing that typically takes one business day to process.

However, the amount your business can receive from revenue advances will primarily depend on historical and recent cash flow. Other influencing factors include your credit score and time in business. MobyCap, for example, specializes in substantial advance amounts and can go as high as $5 million for all qualified customers. Additionally, MobyCap is among the few lenders that waiver all up-front fees in the name of establishing long-lasting business partnerships.

Let us Support you

If your lender is unwilling to accommodate your needs, then they are not your best fit. MobyCap offers multiple flexible funding options including, merchant cash advances, business lines of credit, term loans, and invoice factoring.

In addition, Moby Capital provides fast, easy business funding up to $5M to help companies in all industries meet their goals. To move forward today, contact us by email at info@mobycap.com. As a BBB-accredited business, we have experience serving all industries and welcome the opportunity to work with your organization.