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Finding Alternatives to Small Business Loans

Finding Alternatives to Small Business Loans - Amid the global economic crisis, many small businesses are to close if it is capital injection is not enough. Now it is more difficult to obtain small business loans from banks, however. Paradoxically, the precise reasons why small businesses need these loans to small businesses – the fact that business has declined and profitability has fallen – are the reasons why banks refuse loans. Small businesses now have more ingenuity in finding alternatives to loans to small businesses.

Grants and contracts with the government instead of U.S. Small businesses Loans The Recovery and Reinvestment Act signed by President Obama in February 2009 led to the pumping of billions of dollars to revitalize the economy.

As a result, much government grants and contracts available to small businesses. These may be alternatives to loans to small businesses. But small businesses can benefit from the recovery program?

The Association of centers providing technical assistance (APTAC) has the responsibility to help small businesses obtain and implement federal, state and local government contracts.

The Procurement Technical Assistance Centers (PTAC) throughout the country, ready to help small business owners to register and find opportunities in the area of grants and contracts.

Advisors help small businesses to cover tenders, proposals and quotations. The PTAC conducts educational seminars for small business owners the ins and outs of the legal jargon of government, including the letters and records. A day seminar PTAC understands that small business owners can take months to learn on their own.

The PTAC then helps small businesses with the Central Contractor Registry (CCR), a prerequisite for doing business with the federal government. This record can be so complicated that some companies take two days to do when the PTAC counselor can help to overcome in 15 minutes. Local PTAC help in acquiring state and municipal contracts.

Other resources that small business owners in particular should consult the Small Business Administration (SBA), which coordinates with the APTAC, the General Services Administration (GSA), which acts as a purchasing department of government and provides information to become an approved provider, the Federal Business Opportunities Website (fbo. gov), where federal contracting opportunities are currently available, and the Small Business Innovation Research Website (sbir. gov) where Grant and funded research opportunities Small businesses are listed.

The cash advance services credit card instead of small businesses LoansAnother alternative to small business loans are cash advances from credit card services. This option is much easier to win grants and contracts. Most small businesses already enjoy the services of the credit card that allows them to accept payments by credit or debit card.

It’s practically a requirement for doing business in these days; people only pay in cash for goods and services. Many small business owners know they can not receive cash advances from these services by credit card, however, that these advances may actually equal lending to small businesses.

The amount that small businesses can borrow is based on monthly revenues through the sale of credit cards. This is because the cash advance requires no collateral and future sales of receivables in credit cards are the only guarantee.

Payment is also done through automatic deductions from sales in future credit cards. There will be no set monthly repayment. However, a certain percentage of the sale will be used as payment. The small business owner, therefore, need not worry about where to find money to pay your loan.

The cash advance services credit card is the best bet for small business owners as alternatives to loans to small businesses.

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