If grants don't need to be repaid, are they better than a 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.
Grants are usually awarded after several months, which makes cash flow planning challenging even if you’re the lucky selected 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.
Grants are awarded from a limited dollar pool and are 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 their funds can be used. SBA loans can be used for a wide variety of working capital 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.