If your business doesn’t qualify for a DDTL, there may be other ways to obtain the funds you need:
SBA 7a loans
SBA 7a business loans are backed by the US Government up to 85% of loan value and can provide up to $5million to qualifying borrowers with repayment terms as long as 25 years. Government backing reduces risk for the banks, credit unions and online lenders who offer these loans
SBA express loan
SBA express loans are a faster alternative to the standard 7a loan program. Offered by the same pool of lenders, express loans can give you up to $500,000 to support your business and you’ll usually get a ‘yes/no’ indication within 36 hours of making your application.
Business term loan
Term loans are the most popular type of business loan. Commonly used for one-off investments where you know exactly how much cash you need. Commercial real estate purchases, plant and equipment investment, and debt repayment and restructuring activities work well with this kind of loan. You receive a single, lump-sum cash injection and then pay it back in regular instalments over a fixed period of up to 25 years. Collateral may be required.
Business line of credit
Also known as a revolving line of credit, this is a business loan that functions like a high-value credit card but comes with lower interest rates and fees. Organizations can withdraw as much as they want when they want from a loan facility up to the limit of their borrowing. Collateral may be required.
Invoice financing
Also known as account receivables financing, this type of loan allows you to borrow against the value of your unpaid invoices. The lender will usually provide up to 95% of the invoice value within a few days or even hours of the bill being raised. No added collateral required.
Merchant cash advance (MCA)
MCAs are suitable for businesses that accept customer payments by credit and debit card. Borrow against the value of your card sales. As your card sales increase, your borrowing limit goes up. Pay the loan back with a fixed percentage of your card sales on a daily, weekly or monthly basis. Your sales act as security for the loan, no added collateral is required.
Revenue-based financing
Revenue-based financing functions like a merchant cash advance but with higher borrowing limits. Based on the size and regularity of their total revenues, (not just their credit card sales), businesses typically receive a lump sum and pay it back over a short-term schedule, sometimes by small deductions from their daily sales. This type of loan can usually be secured quickly as qualification rules are less intensive and credit scores are not so critical. No added collateral required.
Equipment financing
Equipment loans use the assets you’re financing as security, similar to a car loan or a residential mortgage. Use the equipment as you pay for it while the lender maintains a lien on the title to the machinery. Once you pay the loan back, the lender releases the lien, and you own the equipment outright. No added collateral required.
Business grants
Business grants are effectively free money – they do not have to be repaid if you spend them properly. The good news is there are literally thousands of grants available across the US and they are provided by federal, state and local governments as well as foundations, non-profits and other organizations. The bad news is that small business grants are usually highly competitive, slow to fund and often come with strict qualifying rules.