For startup ventures, you may need a business loan to get the wheels turning. The main question everyone begins to ask themselves is: “What if I can’t approval from the bank? Are there any other business loan alternatives?”
The great news is going to the bank isn’t the only way to get the funds you need for your venture. There are other sources that could actually work better for you.
Here are 4 business loan alternatives to finance your new business:
1) Crowdfunding
A popular way to fund your startup with a business loan alternatives is through crowdfunding. This is pretty popular with younger business owners who’s got a great idea for a product, but don’t have the capital.
To launch a successful crowdfunding campaign, you must earn the trust of netizens around the globe. You must show them that you have a plan and that your product or service will be worth it.
2) Angel investors
If you’ve seen or heard about the popular TV show called Shark Tank, the “sharks” or the billionaires on that show are what you call angel investors. Basically, these are people who are wealthy, savvy in terms of business, and they are willing to help you build your company.
However, instead of paying off interest, angel investors will be asking for equity. So think it through before making a deal with them.
3) Credit cards
As long as you can promise yourself that you can make the repayments, you can opt to use your credit cards. Buy equipment that your business needs and pay the amount back in installments.
Just be careful not to max out your cards as this could create a problem for you in the future.
4) Friends and family
Of course, your friends and family can give you a helping hand. Even if you are borrowing money from people who are close to you, it doesn’t mean that you don’t need a contract.
Entering a contract with them can be beneficial for both parties. Set the interest rate, the repayment schedule, and any penalties involved in that contract.
As you can see, you have many options to get your business off its feet. The hard part is putting your courage hat on and going for it. The worst someone can say is “no”. Which will be their loss!
Hurdles That You May Face When You Apply For A Small Business Loan
Whenever applying for a business loan, we should always keep in mind that banks are also businesses that exist to make money. They’re not exactly lending money out of the goodness of their hearts. So they don’t just approve loans for anyone who applies for it. To ensure that you’re ready, check out the hurdles that you could face when you apply for a small business loan.
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