Over the years there has been a rise of startups and small businesses which have made huge impacts in the current world despite the humble beginning and struggle. One of the biggest struggles for a small business is often arranging for the finances since getting a loan from a bank is almost close to impossible. Reports say: “The National Small Business Association found that 43 percent of the small business owners that it surveyed needed funds but couldn’t get commercial financing…Fifty-three percent of the participants who couldn’t get money said they weren’t able to expand or grow because of a lack of funds.” Under these circumstances, it is only wise for small business owners to start looking into alternative financing options to save them some headache.
Alternative business loans: Some alternative financing options for small businesses
A personal loan might sound risky but it’s easy to obtain. With some panning and playing your safe but winning bets you can easily make use of a personal loan for your start up.
Working capital loan
Although this is more viable if you are already established rather than if you are just starting up, working capital loans are short term loans which can be of immense help in reviving a bad spell or getting you the necessary capital for an essential expansion.
Line of credit
A line of credit is similar to a loan but is easier to get. Like a credit card you can withdraw as much as you need, eliminating the need for a large loan at one time. This is actually quite efficient, and you can manage your credit better.
Peer to peer loan
Peer to peer lending loan or P2P, though relatively new in the market is extremely useful and effective as it is relatively easier to get funding from peer investors than to go through all the banking red tapes.
Yet another new, but extremely useful method of funding your start up would be crowdfunding. Forums such as Kickstarter etc. will provide you with an excellent platform through which you can appeal to large masses.
While it sounds quite elusive and difficult, there are actually a number of people who are quite willing to invest in small businesses and startups. All you have to do is to show them your vision, the promise that you see in your business and with the right convincing you will be able to get yourself some good loans to support your business.
Microloans, as the name suggests are loans of small value that you can obtain for your business. These are relatively less hassle to obtain and with some planning and smart strategy, they could be of huge help for your business.
Small business loan
There are a number of options for business loans that can help you get through the hitch of capital issues. With a little research and planning you can easily get a small business loan for your company.
While the lure of free money might sound too good to be true, but there are indeed some grants that you, as a small business or start up owner, can apply for.
With the help of these alternative financial options you can now start your business or go for that expansion without much stress.