Small businesses often need business funding to meet unexpected expenditure, to invest in expansion, or to raise working capital for daily operations. Availing funds from large banks and commercial institutions is not all that easy for small businesses due to strict guidelines and eligibility criteria followed by them. The process of applying for the loan is tedious, time-consuming, and involves a lot of paperwork and documentation. Delais in availing funds from bank loans may sometimes result in missing a growth opportunity or can even attract penalties. However small business owners should not feel disappointed because of the many finance options available on the market.

There are small business lenders on the market that design customized loans to suit the requirements of small business owners. The customized loans are developed by lenders that did not want to forego the opportunity of advancing loans to small businesses to help them to either invest, expand the facility, purchasing new equipment, or to stock raw materials.

Several small business lenders are willing to lend to small business owners, and many of them can be found online with a simple search. Here are some of the types of lenders that advance loans to small businesses.

Online lenders

Online lenders make the process of applying for loans easy and straightforward and can be done from the comfort of a PC in a few easy steps. The online lenders provide fast and flexible loans to small businesses. The funds availed from these lenders can be used for raising working capital or can be used to meet all kinds of business related expenditure.

Peer-to-peer lending sites

Peer-to-peer lenders sites are a platform which acts as a bridge between individual and institutional lenders and small business owners. You can apply for loans through these lending sites and avail funds from lenders that offer customized business loans to your type of business at competitive prices.

SBA-backed lenders

There are small business lenders that are supported by SBA that advances loans to small and medium-sized businesses. The loans advanced by these lenders are guaranteed by SBA to limit the loss in case borrower defaults the loan amount.

Merchant Cash Advance

Merchant cash advance is another great finance option for small business owners as it is free from collaterals and can be availed even by business owners with bad credit. These are not loans but are cash advances against future sales of the business. Any business which is least one year into the business and which accepts payments with credit or debit card towards sales can qualify for a merchant cash advance. The cash advance availed is collected as a portion of sales on a daily basis until the entire principal amount is recovered. The repaying amount is not fixed and varies with depending on sales, the higher the sales, the higher the payment and vice versa.

The purpose of availing a small business loan varies with the situation, and the amount of loan depends on the purpose of the loan. Small business lenders aim at offering customized loans to small businesses to help them grow and prosper.