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If you are looking for ways to finance your business, there are a number of avenues that you can take, many of which are directly analogous to personal financing. The array of options available include, but are not limited to, fixed and variable loans, credit cards, cash advances, and small business line of credit. These options all come with a wealth of different variables, including different levels of interest rates, different limits and different rewards. In this article, we’ll take a look at the various options that you have to finance your small business.

The standard loan is, of course, the most commonly thought of method; you take your sales pitch to the bank, explain in detail your credentials and the outline of your business, and get a good deal with a low interest rate. While this is a reasonable expectation if you have an already lucrative business with a strong Paydex credit score, it is unlikely that you will have the same level of success with a start up business, or low business credit. More often than not, your financing options will be better served by meeting with a small bank or credit union, as they will be much more competitive in trying to keep you as a customer. You will also have a better chance of getting your pitch across to someone that is higher up in the decision-making process.

Another option banks offer is the small business line of credit. These credit lines are revolving credit, meaning that the loan is issued as a lump sum that is available to be spent whenever you need it, and an interest rate is issued out to be paid in monthly installments. Banks issue these lines in the form of checkbooks, which go directly to the credit line account.

You should also try applying for business credit cards. A business credit card is similar to a small business line of credit in that it is a form of revolving credit that allows you tons of flexibility and ease in spending. Business credit cards come with similar bells and whistles like personal credit cards, and typically have much higher balances.

Finally, you may also want to consider getting a merchant cash advance. Merchants issue cash advances, which are typically in high amounts and have lower interest rates than many other forms of financing, and best of all are not based on credit. Merchants issue cash advances based on credit card sales, so if you can demonstrate a good amount of credit card sales, you may be eligible for one of these financing options.

There are always a wealth of options available for smart investors, it’s just a matter of studying which ones are best and being a choosy customer.

This Business article was written by Mark Karavan on 1/6/2010