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Delancey Street is a premier small business lender, based out of NYC, that has helped broker 100's of millions in business loans. They are a pro, at making sure you get all of your financing needs satisfied.
- Over $200 million in funding secured
- Can handle low risk credit
- Handles all industries
- Handles high risk and low risk loans
Starting a small business is one of the most daunting tasks anyone could take on. A lot needs to be taken care of, from sourcing funds to setting up the business and inventory management among many other things. While owning a small business may seem fulfilling, it’s not uncommon for entrepreneurs to experience financial constraints. In such situations, Mobile Small Business Loans come in handy as they offer flexible financing options that complement the unique cash-flow fluctuations common in small businesses.
What Are Mobile Small Business Loans?
Mobile Small Business Loans are financial service products specifically designed for mobile use. This makes them ideal for small business owners who need quick access to funding without leaving their location. Unlike traditional loans, mobile small business loans are fast, easy to apply for, and require minimal paperwork.
Types of Mobile Small Business Loans
There are several types of Mobile Small Business Loans, including merchant cash advances, invoice financing, asset-based lending, and line-of-credit loans. Let’s examine these types of loans thoroughly.
Merchant Cash Advance
Merchant cash advance allows small business owners to borrow against their future sales. The loan amount is based on your monthly credit and debit card receipts; thus, it’s important to accept card payments frequently. Merchant cash advance has high-interest rates, but it’s suitable for companies unable to qualify for bank loans.
Invoice financing is an excellent option for business-to-business (B2B) companies. It involves selling your unpaid receivables to a third party (the lender) at a discount. The lender then collects the unpaid debt on your behalf by keeping a percentage of your invoices’ face value as a fee.
Asset-based lending caters to business owners with valuable assets, such as inventory or equipment, as collateral. The business owner can receive up to 90% of the asset’s value as a loan, which they all pay over time with interest.
A line-of-credit loan is a type of flexible-floating rate loan based on your business needs. You can borrow funds continuously up to an agreed-upon amount and pay interest only on the borrowed amount. These are suitable for companies that require ongoing investments.
The Advantages of Mobile Small Business Loans
Mobile small business loans offer both immediate and long-term benefits to small business owners. Here are some advantages:
Easy Access to Funding
Applying for mobile small business loans is quick and easy. Most lenders offer online applications that take less time and only require minimal documentation.
Flexible Repayment Options
Mobile small business loans have flexible repayment options that you can tailor to your business’s cash flow processes. This ensures that the payments do not disrupt your day-to-day operations while ensuring you meet your financial obligations.
Fast Approval Process
It only takes hours or days to receive approval on mobile small business loans, which is beneficial when you need funding as quickly as possible but don’t want to wait for weeks like traditional bank loans.
Higher Approval Rates
Compared to traditional banks, mobile small business loans have higher approval rates due to less rigid qualification standards. This makes the previously shut-out small businesses now viable for financing.
How Mobile Small Business Loans Can Help Your Small Business Navigating Covid-19
COVID-19 has brought unprecedented economic hardships, especially for small businesses around the globe. Many businesses are finding it challenging to navigate through these unprecedented times, especially those that were already struggling before the pandemic’s emergence. As many businesses adapt to the new normal, most struggle to remain financially buoyant. Mobile Small Business Loans have been instrumental in helping small businesses survive the pandemic’s economic downturn. Here are a few ways small business loans can assist your small business:
Purchasing Personal Protective Equipment (PPE)
To comply with COVID-19 health and safety protocols, most small businesses require personal protective equipment (PPE) for their staff. PPE can be costly, especially for cash-strapped small businesses. But, such businesses can take advantage of mobile small business loans to meet their PPE requirements.
Mobile small business loans can help finance your business’s day-to-day operations in moments when cash flow is tight. The funds can be used to pay salaries, rent, utilities, among other operational expenses.
Mobile small business loans can also help you set up remote workspaces to ensure business continuity during the pandemic. Funding can be allocated towards purchasing IT equipment or laptops for employees working remotely.
Inventory management and e-commerce integration
Mobile small business loan is one way to generate sufficient working capital to invest in inventory management and establish an e-commerce platform. These measures can position your business to increase revenue streams, enabling stability amidst the pandemic.
The Challenges of Mobile Small Business Loans
While mobile small business loans have many advantages, they have their challenges as well. Here are some obstacles you may face when using mobile small business loans:
Compared to traditional bank loans, mobile small business loans tend to have higher interest rates. It’s crucial to compare several options before settling on a lender that suits your business needs.
Low Borrowing Limits
Typically, mobile small business loans cater to small enterprises, making it challenging to acquire significant funding. A business owner has to find ways to bring in more cash flow and maintain their portion of the investment.
Short Repayment Periods
Mobile small business loans typically have shorter repayment periods compared to traditional bank loans, which could lead to financial constraints if you mismanage cash flow.
Some mobile app loan platforms are unregulated, making them risky for borrowers. Be sure to double-check a lender’s legitimacy to avoid falling victim to scams.
The Future of Mobile Small Business Loans
The future looks promising for mobile small business loans. With the exponential growth of mobile computing power, it’s becoming increasingly easier to access financing through mobile devices. The demand for instant financing solutions continues to grow amongst startups and small businesses. Analysts predict increased investment into these products in the coming years.
The Benefits of Technology Innovation on Small Business Loans
The integration of technology in financing processes has resulted in increased efficiency in accessing small business loans. The use of artificial intelligence, big data, and blockchain technology has contributed to better credit evaluations, faster approvals, and reduced rates.
Online Learning Platform
In line with the changing landscape arising from the COVID-19 pandemic, some mobile small business lenders have adopted an online learning platform feature that offers educational materials and support for entrepreneurs struggling or seeking to improve their business operations.
Mobile small business loans are instrumental in helping small business owners navigate economic challenges. Although they have a few drawbacks, you can take advantage of the accessible financing options available to boost your small enterprise. Ultimately, meaningful evaluation is necessary when selecting a suitable lending partner for your business’s financial needs.