Literally the biggest challenge any new business faces is getting the funding they need to get going. Unfortunately, loans aren’t easy to come by these days – especially if you lack good credit. There are some alternative options, however. You don’t have to necessarily apply for a traditional loan from a bank or go through the SBA. There are several online lenders, for instance, that offer small business loan for new business.
Microloans are a good example of an alternative funding solution. While these are typically reserved for non-profit organizations, some individuals who would not ordinarily qualify for a traditional bank loan might still be able to obtain funding from microloan lending organizations.
Another type of funding to look for are venture capitalists. These are similar to “angel investors”, as they have money to invest and want to invest it in young, up and coming businesses that can demonstrate that they have a high potential for monetary returns and growth. They also look for a share of equity in exchange for their initial investment. VCs will at some point expect to make money on their investments, so they might want to have some control over how the company is managed.
Is Crowdfunding Good as a Small Business Loan for New Business?
You’ve probably heard of crowd-funding, where start-ups can create a campaign to help raise money for their ideas and products. While this option can be helpful, it’s not easy at all to reach your financial goals in the period of time in which you really need the money. You’re really going to have to have a genius marketing plan that will attract a lot of attention by people who have the money to give you.
There are several other independent organizations that offer small business loan for new business. However, there must always be due diligence on your part because you want to be sure that you are doing business with a real, legitimate vendor. There are obviously some scams, so you must ensure that you are getting involved with a legitimate company.
Spend time carefully reading over all of the terms and conditions. Seek clarification if there is anything you don’t understand. Make sure those terms and conditions are right for you and your business needs. Whichever lending source you go through should benefit you, not hurt you.
Now that you know a bit more about alternative lenders and online funding options, you might want to check with US Business Fund. It has a very high approval rate for small business loan for new business endeavors.