Coming up with a great idea for a business is relatively easy. After all, we live in a globalized economy where markets are continually opening and expanding. The hard part is finding sufficient funding to get your business off the ground. Unfortunately, the major banking corporations are approving fewer loans to small business owners, especially if the business is a small startup and can´t show hard statistics on positive cash flows.
Instead of throwing in the towel, we have three unique yet unconventional business lending ideas and suggestions that can help you get your business idea out of your head and in front of real, paying customers.
Research Your Options
One of the biggest mistakes that small business owners make when applying for their first loan is not taking time to research all of the lending options out there. Instead of simply heading into your hometown bank where you´ve done your banking your entire life, it is much more advantageous to take the time to check out all of the options available to you.
In the United States, the Small Business Administration has a helpful website where you can search by state for lenders that specialize in small business loans. If you live in Australia, you can check out Ebroker’s guide to small business loans. The more options you research, the better chance you have of finding a willing lending agency.
Go Beyond the Brick and Mortar
More and more people are switching to online banking because of the ease and flexibility that it offers. As banking becomes increasingly virtual, it is possible to find several different online banks that might be willing to lend your business startup the capital you need to get started. Again, the Small Business Administration offers helpful guidelines on where you can potentially find online business loans. Furthermore, the government of Australia also has useful information about potential government grants that you can apply for online to get your business up and running.
The Banks Aren´t the Only Ones Who Lend Money to Businesses
If you aren’t having any luck getting a loan from banks, it is also possible to find individual and private lenders through online lending clubs. Peer lending has exploded onto the business scene in recent years. In a nutshell, these alternative lending services allow potential business owners to receive multiple offers from individual lenders, institutions, and other investors who see online lending as a potentially profitable short to mid-term investment. Qualified applicants will often receive several offers within a couple hours or even minutes in order to compare the different offers on the table.
In the United States, Lending Club is one of the leading peer lending networks while in Australia Rate Setter might offer you an alternative lending possibility to get your business off the ground. Investors ranging from individuals to institutions select loans in which to invest and can earn monthly returns.