All companies require funding before they can successfully be launched, and start working toward achieving their objectives. Business loans are one option, but they are by no means the only way that funds can be secured, so entrepreneurs involved with startups should consider all of the available options before settling on one solution.

Angel Investors

An angel investor is an individual who is always looking for a promising startup or a young company to invest in, expecting a good return from that investment. If you work with an angel investor, you can expect to have to give up at least some portion of the equity in your business, in exchange for the upfront cash provided to you by that investor.

Community Banks

While the approval rate from banks, in general, remains extremely low, especially when new companies are involved, many beginning small businesses still consider it worthwhile to apply for a loan at community banks. Business loans extended by these lenders traditionally offer the most attractive interest rates, and that accounts for their continuing popularity. The reason you should choose community banks as opposed to the larger more prominent ones is that those big banks only have an approval rate slightly over 20%, whereas community banks are currently approving loans at a rate closer to 50%.


Factoring is an alternative lending product which has arisen in recent years in response to the low approval rates from big banks. Any company which has a number of invoices with customers that are good credit risks may be able to arrange for factoring with a company that will provide immediate cash in exchange for those invoices. Typically your small business would receive an amount equal to about 80% of the value of the invoices, and the factoring company would then collect on those invoices. After having received money from your customers for those invoices, your company would receive the remaining 20% of the invoice value, minus the factoring companies fee. These are not business loans, but are instead immediate infusions of cash, using the invoices as collateral.

Would your company benefit from business loans? 

If your company is in need of a business loan, we might be able to help. Contact us at Nations Capital Financing so our financial experts can discuss with you some possibilities which may be to your advantage.