The need to apply for outside financing is a fact of life for most new business owners.

Here are eight business financing options to consider.

• Business credit card: You apply for a business credit card using your company’s credit history. If approved, you can charge up to the credit line. Your monthly payments will include interest if not paid in full.
• Business line of credit: Similar to a credit card, business owners can borrow up to the credit limit. One difference is that they usually write checks to themselves to obtain working capital rather than finance business purchases on a credit card.
• Equipment loans: This type of business financing provides you with funds to purchase a specific type of equipment. The repayment terms typically match the expected lifespan of the equipment. The equipment also acts as your collateral.
• Invoice factoring: If you have a large percentage of accounts receivable invoices, you can opt to sell some of them to an invoice factoring company for the face value less a processing fee. That company now owns and collects on the invoice.
• Invoice financing: With this variation on invoice factoring, you use outstanding invoices as collateral to obtain a cash advance from a factoring company.
• Merchant cash advance: If your business depends on cash register sales, one way to obtain business financing is to pledge a percentage or your credit and debit card sales to the lender in exchange for an immediate lump sum of cash.
• Small Business Association (SBA) loan: To encourage the growth of new business, the SBA guarantees loans that banks and other financial institutions make to business owners. This is an attractive type of business financing since payment terms are usually longer and interest rates lower than other types of loans.
• Term loan: Usually obtained from a bank, a term loan is a lump sump of cash that a business owner receives at one time. He or she then repays the loan with interest according to a written agreement.

Black Wolf Capital Group is happy to discuss these options and more during a personal consultation.