Startups follow a very unique business model which thrives on serving niche markets with innovative ideas and a lean staffing roster in order to maximize revenue. Yet despite all of the new innovations startups bring to the marketplace, finding capital still remains a challenge.
Startups and Traditional Lending Channels
Startups are not new by any means, and we see their proliferation every single day. From subscription clothing and meal services to the tech industry and every field in between, when startups have access to adequate capital, their dreams can become very lucrative realities. Traditional lending channels, however, still view startups as high-risk investments. Additionally, because of the business model, most startups do not have the established credit ratings or established financial history to secure traditional loans. Yet with all the obstacles facing startups, there are a number of accessible funding solutions which provide the capital necessary to launch, thrive, and grow successfully.
Unsecured Lines of Credit for Startups
Traditional loans and credit providers require collateral in order to access capital. Startups typically do not have the assets on hand to get access to those programs. Fortunately, there are unsecured lines of credit available to startups with interest rates as low as zero percent. Unsecured business lines of credit provide discretionary capital, so startups can get equipment, advertising, office space, supplies, or anything else they need.
Merchant Cash Advances for Startups
A merchant cash advance is an unconventional solution for unconventional businesses, like startups. A merchant cash advance offers an infusion of discretionary capital with the flexibility startups need. Instead of rigid monthly payments, merchant cash advances are repaid from a percentage of credit card sales, so startups do not experience a strain on cash flow. Merchant cash advances are also reusable, so if startups need additional capital, they can just apply for an additional advance.
Funding Innovation and Success
At Nanaki Capital, we believe in giving startups the financing and advantages they need to bring their ideas into the spotlight. We offer the most comprehensive programs for merchant cash advances, unsecured lines of credit, and other funding solutions for startups. If you own a startup and need extra capital to maintain and grow your operations, contact Nanaki Capital today.