As a small business owner, funding can be a serious issue. Most small businesses are just too small for big banks to take seriously. Plus, if you have no credit and your business was just started, it will be even more difficult to get a loan. However, this doesn’t mean that all is lost. In fact, just the opposite is true. When it comes down to it, there are many avenues you can take to secure a monetary cash injection. You may have to do a little legwork and you may have to jump through hoops, but it will definitely be worth it. Here are some alternatives to getting a bank loan for your small business.
- Factor. In many different industries, there are factor companies that give businesses capital against purchase orders. Basically, if you have a number of orders to manufacture, you would go to a factor and present the paperwork. You will then get the money you need to produce your goods. When you close out your purchase orders, you will need to pay back the factor – plus interest.
- Angel investor. Looking for angel investors may also be a good idea, because they will be able to give you the cash you need in a very short amount of time – hence the reason they are called angel investors. You can look for angel investors by looking online or you can ask other business owners that you may know. It is important to note that one of the biggest downsides of securing an angel investor is that you may have to pay a large return on the investment. However, if you are in a bind, it will definitely be worth it.
- A friend or family member. Another option is to simply ask a friend or family member for the money you need. Of course, this is a last ditch effort, but it could be the safest bet. There is a good chance that your friends or family won’t be pushing you to pay the loan back, so you can spend some time growing your business. Of course, you’ll want to pay the loan back at some point.
- Cash advance loan. Another way to secure a business loan is to go for a cash advance loan – from a company like Express Capital. These cash advance institutions will give you cash based on how much money you have coming in. If you need emergency capital, this is one of the best ways to get your hands on quick cash, which you can pay back when you close your first order.
- Credit card. Of course, you can also fall back on a credit card if there are no other options. If you find yourself tucked into a fiscal corner, your next bet would be to rely on your credit card. Of course, you want to be careful going down this road, because you don’t want to default. In the end, you want to have a set amount of money that you can spend.
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