If grants don't need to be repaid, are they better than a loan for your business?
What’s better, a grant or loan for your business? While grants can be a solution, here are some scenarios where a business loan may be better for your growth:
1. You're Building your Business Credit.
If you’re growing your business’ credit history, loans can help enhance your business credit profile. As your company scales, strong business credit becomes increasingly important so you can access larger loan amounts at lower rates.
2. You Can't Wait Months (or Indefinitely) for Capital.
Grant providers usually award grants after several months, making cash flow planning challenging even if you’re the lucky recipient. Through NEWITY, you can determine your eligibility for an SBA 7(a) loan in less than 10 minutes and receive your loan funds within weeks.
3. Receiving Funding is an Absolute Necessity.
Grant providers award grants from a limited dollar pool, making them highly competitive. It’s difficult to create growth strategies without knowing if you’ll have capital. SBA loans are backed by the U.S. government, making it more likely that your loan request is approved for a larger amount.
4. You Need Capital for a Variety of Purposes.
Many grants carry restrictions on how you can use their funds. You can use SBA loans for a wide variety of working capital needs like payroll, supplies, rent, utilities, marketing, inventory, 1099 payments, and more. SBA loans provide flexibility so you can enhance multiple facets of your business.
If you’re focused on growth, don’t take a chance in getting the capital you need. At NEWITY, we can help you access an affordable SBA loan to help you reach your goals. Our application takes less than 10 minutes and doesn’t impact your credit score.
