There are a number of alternative financing strategies you can use if you have been turned down for a loan by a traditional lending institution. In fact, this is fairly normal for most small businesses, since the vast majority of loan applications are declined these days. Here are some possibilities you should consider as a means of alternative financing.
Angel investors are either individuals or groups of people who are interested in financing small businesses which have the potential for providing a good return on their investment. In some cases, these investors will even provide mentoring or business advice to increase the likelihood of success for their investment businesses.
Bootstrapping generally involves getting as much as possible out of the minimum investment possible, and relies more on hard work, creativity, and initiative, than on a massive infusion of cash. Any cash surplus in the early stages of a business is reinvested quickly so as to keep momentum going.
There are number of government sources which provide grants and loans to small businesses which qualify. You should investigate these to see if you are eligible for any of them, because in most cases repayment terms are favorable, while the capital obtained from them is extremely valuable.
One of the best sources of funding these days, apart from traditional lending institutions, are the numerous alternative lenders which have sprung up in recent years. They provide a wide variety of financial products, many of which are suitable to businesses in specific industries, and they are generally much more willing to approve a loan applicant than banks. There are numerous alternative lenders which can be found online, so that you’ll have the opportunity to decide which one is best suited for the kind of loan you need for your business.
Have you been declined for a bank loan?
Most small business owners have been declined for a loan at some time or other, so don’t feel like you’re alone in that regard. But we might still be able to help you at Prime Wealth Development, so contact us to see if there are some opportunities which we can make available to you to secure the funding you need.