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How to Bridge the Gap That a Traditional Loan Won’t Cover
If you’re a small business owner, at some point you will need a loan of some sort. Financing for small businesses is critical, and expansion is critical. Being able to fund your small business is important, and your team members depend upon you. Many small business owners rely on traditional bank loans or loans from the U.S. Small Business Administration.
More often than not, small business owners can’t qualify for these types of loans or they just need short-term financing or a more flexible option. In cases like this, alternative lending offers ways to get the financing you need to grow. Since alternative loans come in many shapes and sizes, so it’s feasible to find the right option for your business needs. Here are a few ideas on how can you bridge the gaps that traditional loans won’t cover.
Seek Out Nontraditional Loans
Alternative economic factors lead to alternative styles of business funding. You’re probably already familiar with many of these. Microloans of less than fifty thousand dollars are seen as a good bridge with traditional banking options. As Bench points out, when it comes to other styles of funding, you have seen Kickstarter and GoFundMe options for microloans. When enough individuals support and think your idea is a great one, you know that you also have a larger market to tap once you launch your idea and product.
Online business loans are an excellent alternative for small business owners to get the funding they need. Online business lending can no longer be overlooked, 32% of small business applicants turned to online lenders last year. So when deciding what kind of finance solution is the right fit for your business, you will have to consider all of your financing options.
Use Your Own Funding
If you have an established 401k and are interested in using those funds for your business, there are ways to make them available, even if you’re not yet of retirement age. According to Franchise Gator, a rollover for business startups (ROBS) can help you access 401(k) money for a business. Make sure to talk to a financial advisor to make sure that your ROBS is both helping you, and within the law, of course!
Patrons and Angels
If you’re a small business in need of a loan, but an SBA isn’t quite enough to take care of what you’ve needed, sometimes there are other ways to get to where you’d like to be. For example, there are “angels”—those looking to invest in small business options, which can help make sure that you stay afloat. Venture capitalists are constantly searching for those small businesses which are well run, well organized, and ready to make that next leap. They want to help: your hard work is their investment.
Financing for Small Businesses
Whether you need venture capitalists to help, or to find microloans from standard ways, there are ways to get there if you need to. Don’t despair! Try for Small Business Administration loans, to start with- that’s why they were created. Then, you can research Peer-to-Peer lending, and allow your future customers to see what projects you’re working on which they’d like to own outright. It’s possible to find Venture capitalists and “angels” or patrons who will support your ideas and ideals. Keep going, and don’t be afraid of these new steps!
Need a small Business loan for your business? Whether you are a small business startup or want to upgrade your equipment, hire more staff, or open a new location, we can help. You can get access to the necessary funds in just three steps. Check out Capital for Business funding solutions or apply for a business loan today.
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