Best Loans for a Startup

 Posted on January 28, 2025 in Small Business Loans

If you have aspirations of starting your own business, you might be intimidated by the sheer amount of money you need to launch your company. You may have logistical concerns about hiring employees, getting real estate, and other issues. Unfortunately, traditional banks and lenders may not be willing to take a chance on a new business, depriving you of the capital you need.

Fortunately, you may have other options to secure the money you need for your startup. At Fidelity Advance, we help small business owners reach their goals with alternate funding solutions, opening the door for people with fresh ideas. Our funding advisors will work with you to obtain fast startup capital for your business.

Term Loans

A term loan is a lump sum payment that can give you immediate cash to work with. A term loan can be used for a variety of purposes, such as purchasing real estate, buying stock or supplies, or hiring new staff. Depending on how much capital you need, you might have as little as a few months to pay it back or several years. Term loans are paid off at regular intervals, giving you a consistent schedule to account for in your budget.

Compared to other long-term financing options, the lower interest rates of a term loan can be very appealing. If you are looking to get your startup off the ground, a term loan is a forgiving, flexible solution.

Equipment Financing

Most financing options involve borrowing money or access to capital. If you need specialized tools to run your startup, you can cut out the middleman with equipment financing. With equipment financing, you are essentially renting the equipment until you finish paying it off. Once you make the last payment, the equipment becomes your property.

Equipment financing can be a great solution for dentists and physical therapists looking to start their own practice without the cash on hand to buy expensive instruments. Up-and-coming construction companies can also benefit from equipment financing, addressing the need for heavy machinery.

Merchant Cash Advances

Like a term loan, a merchant cash advance (MCA) gives you an upfront lump sum payment to work with. Instead of regular repayments, however, an MCA is paid back through a percentage of your future credit card/debit sales, automatically deducted from your earnings. 

If you are just starting up your business, you are unlikely to have the kind of credit history that traditional lenders want to see before approving a loan. By contrast, MCAs are much more accessible to borrowers with low credit scores, with much faster approval times. If you expect to get a lot of credit or debit sales, a merchant cash advance may be the right option for you.

Contact a San Diego, CA Funding Advisor Today

At Fidelity Advance, we want to see new businesses thrive. Our California funding advisors are here to help you address the financial challenges standing in the way of your startup, providing solutions tailored to your needs. To schedule a free consultation, call our offices at 888-316-2246 today.