Understanding Financing Alternatives
Things to consider when looking for financing
What makes the most sense for you and your business? Consider the following five criteria:
| Affordability | Traditional financing options can tack on fees, hidden charges and penalties above and beyond the initial cost. Make sure you fully understand the total cost of financing. |
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| Control | Monthly minimums, restrictive pricing, rigid terms, and disclosure policies are often required. When your company assets are used for cash you should have some say in the matter. |
| Risk | Personal guarantees, restrictive covenants and liens on all of your assets are often required. Determine what level of risk you are willing to take on. |
| Flexibility | Rigid borrowing terms, complicated eligibility requirements, fixed credit limits, and long-term contracts make financing inflexible. A financing option should be one that grows with your business. |
| Timing | Many traditional financing options require long lead times before you're approved and cash is disbursed. A 30-90-day wait for funds could mean the difference between success and failure. |