Running your own business is one of the most rewarding endeavors to undertake, but no matter what type of company you have, it’s never easy to do it alone. At some point, you will likely require outside assistance to raise the capital needed to continue to grow your business. When that happens, you have a couple of different options available.
The two most popular ones for companies in New York are taking out a business loan from a bank to fund your growth and seeking an investment from a private lender. While both have their own benefits and drawbacks, the team here at CapitalDude wants to share with you why NYC business lending is often the optimal choice for your company.
What is the difference between NYC business lending and taking out a loan?
To figure out which option is better suited for your company to raise the capital needed to grow your business, you need to understand what differentiates taking out a loan and opting for a NYC business lending provider. Both of these avenues are viable methods to raise the capital you need to either start your business or invest in infrastructure, inventory, or employees to expand your operations, but the main difference is how these loans affect your long-term plans.
If you partner with a company that specializes in NYC business lending, you can acquire the funds you need and set up a flexible repayment schedule. However, this route also requires that you give a negotiable amount of equity in your business, so the lender will now have a stake in your company’s overall success and will share the profits.
Taking out a business loan from a bank or other financial institution allows you to retain all of the equity in your business, but that ownership comes at a cost. Loans typically come with more stringent repayment requirements, and the loan will stay on your business’s credit report. So while you don’t have to sacrifice any ownership in your company, you’ll be forced to make payments regardless of how well your company performs.
Benefits of opting for a NYC business lending partner.
You’ll gain a partner who is vested in your success.
If you choose to acquire a private investment in your business, you’re not just gaining the capital funds. You’re also getting a business partner who has a reason to help you succeed. The more profitable your business becomes, the higher the return is on their investment, so many investors will do everything they can to help you succeed.
It’s easier to acquire additional funds.
In business, it’s often said that you have to spend money to make money, but when you’re working with business loans, it’s not always easy to get more funds when you are ready to expand your business. The loans stay on your company’s credit report, and many financial institutions are wary about making large investments in a private business. If you find an investor who believes in your vision, though, you can more easily access additional capital when you are ready to push your business further.
You’re not beholden to stringent repayment plans.
Business loans from financial institutions typically come with very rigid repayment agreements, and they don’t factor in how well your business is doing when it comes to your payments. NYC business lending providers, however, are much more flexible. They understand that your company’s success will have ebbs and flows, and they’ll factor that in when it comes to recouping their returns on the investment.
Does your business need additional capital?
Then reach out to our team of NYC business lending experts at CapitalDude. We help you skip the long and complicated process of acquiring a traditional bank loan so your business can get the funds it needs quickly. Whether you have a new opportunity are facing an unexpecting expense, we can approve your application the same day you submit it and disburse funds to your business bank account within 24-48 hours. Learn more about how we can help your company, or start your application process today.
