Lending Options For Startups

Launching and running a startup is challenging. It’s a brave move to begin your own venture, however, the survival phase of any business is crucial. Most startups require additional funding to open at the capacity they really want, however, financing options for startups are quite limited. In fact, it’s generally assumed that startups won’t be approved for loans, but there are ways around this.

Here are some lending options for startups:

Joint venture financing

Structure joint venture financing is a lending option developed for new businesses or businesses working on a particular expansionary project. It works similar to a partnership, however, this partnership is only for the said project. With joint venture financing, a startup can easily build their business and pay back the debt according to schedule.

Bridge loans

Startups opt for bridge loans for many reasons, the two most common happen to be: when they are struggling to survive and second, when they need to cross a certain valuation.

A bridge loan, as the name suggests, bridges the gap between a business’s funds and its financial goals. Bridge loans are also taken out as a way to bridge the gap between traditional loans and the amount required for a particular expense, usually real estate investments.

Bridge loans are also short-term loans, making it more feasible for startups that don’t want to show too much long-term debt on their financial statements.

Business plan for the startup

Hard money loans

Hard money loans are developed specifically for businesses that require fund immediately and for businesses with a poor credit score. Hard money loans are backed by real estate of similar value and therefore lenders disregard the poor credit score. Hard money loans are a fantastic financing solution for startups as they’re easier to acquire and can help them build their credit score as the debt is paid back.

Global Capital Partners Fund is a leading private lender based in NYC with over 3 decades of experience in the industry. They provide a variety of commercial financing solutions that range from hard money loans to asset-based lending in Florida, North Carolina, South Carolina, Texas, and Georgia. The company also offer bridge financing, which is used for a variety of property types including retail shopping centers, mixed-use properties, multi-family commercial buildings, hotels, warehouses, office buildings, etc. Get in touch with their representatives at +1-800-514-7350 or contact@gcpfund.com.

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