A Guide to the Best Business Funding Solutions of 2023

Is your business having a tough time making ends meet right now? You should, first and foremost, know that you are not alone.

Inflation has taken a toll on millions of Americans throughout 2023. It has also done a number on many small businesses. Almost half of American small businesses have taken out loans over the last couple of years because of inflation.

With all of this in mind, you shouldn't feel ashamed if your small business could benefit from taking out one of the many business loans available to you. Instead, you should consider different business funding solutions and select the one that sounds right to you.

Tiger Capital can extend a variety of business loan options in your direction. Before you pick out which type of business funding would be your best option, you should learn more about the options you'll have.

Here are our best business funding solutions of 2023.

Small Business Administration (SBA) Loans

The Small Business Administration has a number of different types of loans you might be able to take out when you're considering different business funding solutions. SBA loans are backed by the federal government, so they often come with more favorable terms than many other loans.

Here are some of the best types of SBA loans for small business owners:

• 7(a) loans, which are the most common SBA loans and the ones that offer the most flexibility
• Microloans, which are typically only available to very small, up-and-coming businesses
• Real estate and equipment loans, which can help small businesses make bigger purchases

More often than not, your best bet will be to think about trying to get your hands on an SBA loan if you can. It might not always be easy to qualify for one if your small business isn't as successful as you'd like it to be right now. But it may be worth starting here before considering other business funding solutions.

Working Capital Loans

If you know your small business only needs to take out a short-term loan, an SBA loan might not work out that well for you. It can be almost impossible to get an SBA loan approved and finalized very quickly.

In the event that you need to try to obtain a short-term loan, working capital loans might be a better option. They're the ideal business funding solutions for those small business owners who need a quick and easy cash infusion that'll help keep their companies afloat while they work on paying them back.

You'll be able to keep your operation moving in the right direction thanks to working capital loans. You'll just need to make sure you're prepared to pay back these types of loans in a timely fashion.

Lines of Credit

Lines of credit are a little bit like working capital loans in that they'll provide your small business with access to the money you need to take care of any day-to-day cash flow problems you might be having right now. You'll be able to qualify for a certain amount of credit through a lender, and you can use it as you see fit and pay back only what you borrow.

Lines of credit won't usually be a good option for those small businesses that want to make larger purchases. But it'll give you the freedom to only borrow what you need, and it'll also let you repay any money you borrow over a longer period of time if you would like.

Outside of all this, lines of credit can also help you increase your business credit score in the months to come. As long as you're able to keep up with your payments, you should see your credit score steadily increase.

Equipment Financing

If your small business is in desperate need of new equipment, there is equipment financing that can help you solve this problem. You'll be able to secure the equipment you need with business loans like this and then slowly pay for it over time.

The great thing about equipment financing is that the equipment itself will serve as collateral. This should make it relatively easy for your small business to get approved for equipment financing when you need it.

Merchant Cash Advance

Does your small business currently accept credit card payments from customers? If you do, you may be able to use this to your advantage by taking out what's called a merchant cash advance.

The amount of money you'll be able to borrow through a merchant cash advance will be largely based on the monthly credit card transactions that you perform. A small business can then either repay a set amount of money each day using funds from these transactions or pay a percentage of every day's total transactions.

Which of These Business Funding Solutions Should You Choose?

Every small business is a little different. Because of this, every small business can benefit from a different type of business funding.

Now that you're familiar with the business funding solutions available to you, you should try to give thought to which one would be the best choice for your small business. You can do this by considering:

• How much money your small business needs to borrow
• What you plan to use the money that your small business borrows for
• How long you would like to subject your small business to repaying a business loan

By thinking about these things, you should be able to settle on the right business funding solution in the end.

Contact Us to Learn More About Business Loan Options

Are you unsure as to which of the business funding solutions you should select? Tiger Capital can help you discover more about each one.

We can also assist you when it comes to applying for business loans. It'll increase your chances of getting approved and obtaining the money you need fast.

Reach out to us today for all your business funding needs.