Which financing options are best for your business needs?

DreamSpark 401(k) Rollover Plan: The most cost-effective way to unlock retirement savings, so you can invest in your business tax-deferred and penalty-free. Allows you to leverage funds in a qualified retirement plan [including 401(k), IRA, PSP, 403(b), SEP IRA, or government 457(b)] so you can own a portion of your business inside your retirement plan—without incurring taxes or penalties. Small Business Administration (SBA) Loan: An SBA loan typically has easier credit requirements and lower monthly payments than bank financing. You can use the proceeds, between $100K and $5M, for any legitimate business purpose, including working capital, expansion and more. Unsecured personal line of credit: This type of financing requires no collateral and provides a ready cash reserve you can use when needed. You pay interest only on your outstanding balance. As you repay the principal, it becomes available for re-use at a later time. To qualify, you’ll need a strong personal credit history, including no bankruptcies, with a FICO score of 680 or higher. Marketable Securities: Offers relatively low interest rates because the loan or credit line is secured by your portfolio of eligible investment securities. Factor (Accounts Receivable financing): Provides faster cash flow based on the value of your company’s accounts receivable. A buyer purchases your existing invoices for less than 100 percent of their value. Because it’s not a loan, there are no installment payments, and you can use the proceeds for any purpose. Available for established businesses (not startups) owned by individuals with strong credit and a FICO score of 650 or higher. Equipment leasing: Offers fixed-rate financing for the use of business equipment over a fixed period of time. At the end of the term, you can purchase the equipment outright at a reduced rate or return it. No collateral is required other than the leased equipment itself. Minimum value: $10k. Conventional Bank Loan: Provides capital for any business purpose for a fixed period of time at an annual percentage rate. Can be secured or unsecured. Offers predictable installment payments. Requires strong personal credit and a FICO score of 680 or higher. To learn more about our funding options, including the innovative DreamSpark plan, call 1-855-WHY-PANGO (1-855-949-7264). Our advisors will walk you through the options and help you customize a financial plan that supports your business.]]>