What Type of Funding Is Right For You?

What Type Of Funding Is Right For You? As a small business owner, you're doing Bank loans can be difficult for many reasons, especially if you need working capital urgently everything you can these days to grow your business. There may be just one more thing standing in your way, be it to jump on a new opportunity. That's where Market Street Funders comes in. We help you expansion, new inventory, renovations, find the funding solution that fits best with marketing, or more staff. your business and your growth needs. First, here are the options when it comes to funding your business in a pinch: Tom Abel - CEO, Market Street Funders 1-5 YEARS MEDIUM TERM LOAN SHORT TERM Best For: Longer term investments like renovations, equipment, or expansion. Lenders review tax returns, bank statements, and financials. For both B2B and B2C businesses. 4-20 WORKING CAPITAL MONTHS Best For: High transaction businesses with consistent sales. Generally, you sell to customers, not to other businesses. Need to react quickly to an opportunity or challenge. Advantages: Trade-Offs: • Lower comparative interest rates • Requires more documentation • Requires strong-to-excellent credit • Payments are made monthly • Has no prepayment penalty • True business loan Advantages: Trade-Offs: • Has a longer approval process (1-2 weeks) • All credit types are welcome • Higher comparative cost • Payments are made on a daily or weekly basis • Very limited paperwork needed • Very fast turnaround (2-3 days) • Suitable for wide range of business purposes Requires personal guarantee and potentially collateral • Suitable for wide range of business purposes • Often no prepayment option • Based on business revenue 1-3 MONTHS FACTORING SOLUTION LONG-TERM LOAN 5-10 Here, there are three overlapping types of Factoring Solutions: Invoice Factoring, Accounts Receivable Factoring, and Purchase Order factoring. This is best for businesses who YEARS Best For: Large, long term investments, consolidation of business debt, and/or equity buyouts. Lenders review tax returns, bank statements, and financials. Business profitability is important. sell to other businesses. FSi Invoice Factoring: Receive funding as you generate invoices. Advantages: Trade-Offs: FSar Accounts Receivable Factoring: • Requires strong-to-excellent credit • Significantly lower interest rates • Significantly lower monthly payments • Allows you to put more of the capital to work for your business • Has no prepayment penalty Convert your aging AR into cash. • Requires much more documentation • Has a significantly longer process (3-4 weeks) FSpo Purchase Order Factoring: Obtain financing to satisfy purchase orders. • Requires personal guarantee and likely collateral Now, here are some of the questions you should ask yourself to figure out which type of funding is right for your business: How Quickly Do You Need Working Capital? Yesterday Next Week Next month STWC MTL FS LTL Short Term Working Capital Medium-Term Loan Medium-Term Loan Long-Term Loan Who Do You Sell To? Business-to-Consumer Business-to-Business STWC MTL LTL FS Short Term Working Capital Medium-Term Loan Long-Term Loan Medium-Term Loan How Strong Is Your Credit? Excellent Good Not Great MTL LTL FS STWC Medium-Term Loan Long-Term Loan Medium-Term Loan Short-Term Have questions about which type of funding is right for your business? Get in touch with a Funding Navigator today and let Market Street Funders guide you to growth. CONTACT US TODAY in MarketStreet IFUNDERS www.marketstreetfunders.com