Commercial term loan
Business term loans are a good choice when your business earns a steady income and wants to make fixed payments. Rapid Finance offers both unsecured loans (commercial term loan) and secured loans (asset based loans).
A business line of credit can be a good option if you need to borrow money at some point in the future, but you don’t know when. It gives you a window during which you can withdraw money from your available credit limit. You only pay interest on the amount you withdraw.
Factoring of invoices
Invoice factoring is designed to cover your short-term business needs. It lets you sell unpaid invoices to an invoice factoring company for some of the money up front, minus a fee. The factoring company then collects the invoices and pays you the remaining balance. To be eligible, your lender will analyze your customers’ creditworthiness and have you set bill payment terms at 30, 60 or 90 days net.
Asset based lending
One way to get approved for cheaper rates, especially if you have less than stellar business loan qualifications, is to put something from your business as collateral, such as a business account, company vehicle or accounts receivable. Keep in mind, however, that if you default, the lender may take possession of this collateral to recover their losses.
According to Rapid Finance, you may be able to get even cheaper rates by using more “liquid” collateral, such as savings accounts or accounts receivable.
Bridge loans are short-term, temporary loans designed to bridge the gap between when you need to cover unexpected business expenses and when you are able to secure better long-term financing.
Merchant Cash Advance
MCAs allow business owners to quickly access cash without going through the traditional business loan application process. The advance can be less than, equal to, or significantly more than your monthly sales. Instead of fixed monthly payments like with a business loan, the money is paid back over time as a percentage of sales.
To qualify for a merchant cash advance through Rapid Finance, you will need to accept payment by credit card or similar accounts receivable so that refunds are automatically calculated and deducted.