 TITLE: 8 Ways to Get Emergency Financing for Your Small Business CONTENT: 8\\. Family and Friends\n----------------------\nSometimes the people who know and trust you are the best source of emergency business capital. However, there are two things to keep in mind before you approach your loved ones. First, borrow only from people who can afford to lose the money if you can't pay it back (not from your retired aunt who's on a fixed income). Second, treat the transaction as you would any business loan. Write up a loan document, pay interest and set a schedule for making regular loan payments.\n**Pros**: Can be easy to get.\n**Cons**: Failure to pay the loan back could hurt your relationship.\nWhat to Consider When Seeking Emergency Financing\n-------------------------------------------------\nNo matter what type of emergency financing you decide to apply for, here are some factors to keep in mind.\n*   **Know exactly what you want.** How much money do you need? What will you use it for (for example, buying three new delivery trucks)? How will the money measurably benefit your business (for example, doubling production capacity)? How much time do you need to repay the loan? Answering these questions will help you determine the best source of financing and increase your chances of getting approved. Create financial projections to assess the financial impact of the loan and your ability to repay it.\n*   **Match the source of capital to your need.** Generally, emergency financing is for short-term needs, which shouldn't be financed with a long-term loan. Look for short-term loans, which generally have terms of 24 months or less.\n*   **Give lenders what they want to see.** Even lenders with streamlined approval processes will ask for certain basic information, such as your years in business and your annual sales. They will also consider your business credit score and, in some cases, your personal credit score. From now through May 15, 2020, Experian is offering companies a [free business credit report](;link=5051&nofocus=1) so you can see where you stand before applying for financing.\nYour current business bank is the first place you should look when seeking emergency financing. They know you and understand your business, which may speed up the approval process. But don't stop there: Shop around and compare different lenders to find the best possible terms.\nSCORE and your local Small Business Development Center are two valuable resources to help you identify the best financing options. You can also visit online business loan marketplaces to search for the type of financing you need and get matched with lenders. Popular loan marketplaces include:\n*   Biz2Credit\n*   Fundera\n*   Lendio\n*   MultiFunding\nThere are also online lenders that directly finance your business. Here are some of the most popular to consider:\n*   BlueVine: Term loans and lines of credit up to $250,000; invoice factoring up to $5 million\n*   Funding Circle: Term loans up to $500,000\n*   Fundbox: Line of credit up to $100,000\n*   Kabbage: Lines of credit up to $250,000\n*   OnDeck: Term loans up to $500,000; lines of credit up to $100,000\nShould You Finance a Business Emergency With Personal Funds?\n------------------------------------------------------------\nIn your search for fast business financing, it can be tempting to turn to a personal loan, home equity line of credit or personal credit card for quick cash. But mingling personal and business funds is usually a mistake. At best, it could lead to problems at tax time by blurring the line between personal and business income and expenses. At worst, it can put your personal credit score—or even your home—on the line if you can't repay the loan.\nFinding the Right Emergency Financing\n-------------------------------------\nWhen your business is short of cash and you need quick financing to tide you over, it's easy to panic. But don't jump at the first emergency financing source you find. Think carefully about how much money you need and why, be prepared with the information lenders want, and research multiple options to find the best financing terms.\nSmall businesses have more alternatives than ever before for emergency financing. By doing some research and weighing the pros and cons of each option, you'll be able to find the perfect financing source for your business. END