The landscape of business funding is always changing and, due to the state of the economy, it can be a nightmare to obtain a loan. If you are struggling with getting a traditional loan through your bank, you should be aware that there are some alternative funding options to help you start and grow your business.
What is it?
Alternative financing is financing that is not obtained through traditional means such as bank loans. Most of these are found online and might be the best route if you’ve been turned down due to poor credit or you don’t know exactly what you need.
Unfortunately, understanding these can be complicated- but in this article, we will explore 5 alternative financing options for your small business.
Traditional Loans
While a bank loan may not be an option, there are other traditional loan options available through the SBA and small business lenders. Of course, you must have a business plan in place before beginning the application process.
Grants
A grant is funding awarded by the government to an application that shows promise of success. Since these are not loans, they are more difficult to obtain.
Fintech
Recently, new lenders have emerged on the scene. However, the loans are typically smaller, but the barriers to entry are lower as well.
Crowdfunding/Peer-to-Peer Lending
Crowdfunding and Peer-to-Peer lending options are very similar. In crowdfunding, you present your idea to the public to obtain financing. In peer-to-peer lending, you present your idea to your peers and they lend you the money for your venture if they believe it will succeed.
Venture Capital/Angel Investors
Venture Capital/Angel investors are companies or individuals that are willing to fund your endeavor but are typically looking for some sort of return (exit/growth plan) or a portion of your business.
Bottom Line
Regardless of what you do for funding, you must have a business plan to show. It can be challenging to seek funding for your business, but it can be done. Revenue Park LLC specializes in alternative financing solutions for businesses across all industries. Contact our offices today to get the funding you need.