A chalk board with the words "explore your options" written on it

Ways You Can Finance Your Business Without A Bank by Kenison Fatal

Having a small business can be one of the most rewarding and frustrating experiences anyone can go through. The thought of being you’re own boss may sound awesome, but like most things in life, it has it’s downsides too. One of the biggest challenges facing small business owners today concerns acquiring the capital needed to support their business’s growth. Many small business owners have a hard time being approved for funding for a number of reasons. While cash flow issues and shaky business plans are among the biggest reasons, changes in the lending priorities of banks have also made it more difficult for business owners to get the funding they need. Fortunately, there are many alternative financing options that business owners could turn to when business loans aren’t an option. Here are a few ways businesses could raise some working capital without going to a bank.

Peer-To-Peer Lending

This type of funding allows applicants to seek financial assistance from people online. In a P2P system, borrowers connect with a network of lenders who would directly fund their business under certain terms. Borrowers would have to go through an application process that would match them with other potential lenders. After they choose a lender, they will then receive the borrowing amount in their bank account. From there, borrowers make monthly payments that are based on the agreed-upon terms with interests. Since there are so many platforms applicants can choose from, finding the right one can be a little overwhelming. Some of the most popular examples of P2P lending websites geared towards small to medium-sized businesses include FundingCircle, LendingClub, and StreetShares.

Family & Friends

Many people would turn to those they know if they’re in need of capital for their business. The best part about this option is the fact that you won’t have to worry about borrowing from strangers. Borrowing from family and friends also shows investors that you are very confident about your business’s future. The biggest drawback to this option is, of course, the limitations on how much you can actually borrow. What’s more, mixing money issues with your family and friends can also threaten the relationships you have with them. To get someone you know who is financially stable and willing to invest in your requires a lot of trusts. If you intend to borrow money to support your business from a friend or a family member in the future, plan ahead. Sometimes when things don’t fall into place you may lose more than just money.

Angel Investors

These types of investors are in the business of funding new business ventures and ideas. Angel investors are intelligent and very wealthy individuals who are very thorough at turning an entrepreneur’s business dreams into reality. They invest in promising entrepreneurial businesses in exchange for stocks in those companies. Without them, some of today’s largest companies like Google might not have been successful as they are now. Angel investors are huge risk takers which is why many of them form groups to spread the risk. You can reach out to them by either contacting local angel investment groups or your local chamber of commerce. All angel investors must first meet the definitions of an accredited investor set by the Securities and Exchange Commission. While there is no definite number, experts estimated that there are around 300,000 angel investors active in the U.S.

Business Grants

When it comes to funding options, very few could compete with the benefits that business grants can offer. Unlike loans, business grants allow applicants to receive free money used for the purpose of growing their business. Other perks include diverse funding options for different types of business owners and increased confidence from investors and banks in your business. Business grants do come with catches such as long applications, spending restrictions, and strict eligibility standards. While applying for a grant can be rough, it is still considered one of the most feasible funding options available. If you’re looking for a grant that’s right for your business, you can check out this article from LendEDU, over here

Merchant Cash Advance

One of the lesser-known alternative financing options on this list, merchant cash advances comes with most of the typical benefits of a business loan minus the need for collateral or good credit. It is the purchase of future receivables which allows MCA providers to receive payments through a business’s credit sales. This means that a portion of the sales revenue generated from the business goes back to the MCA provider. Though similar, MCA’s are not loans as they don’t charge interest rates. Instead, MCAs use factor rates that adjust to the number of sales a business generates. While they too have their own disadvantages, MCA’s are relatively easy to get and most applicants can get funded within days after applying. MCA’s, however, are not regulated like business loans are so anyone planning to get them must head with caution.

These are some of the best alternative financing choices business owners could look into when bank loans aren’t available. While there are many alternative financing options to choose from, finding the right one for your business needs isn’t always easy. Other types of business funding options that weren’t previously discussed can be found in this article. If you’re a small business that’s been in operation for at least 6 months and needs working capital, you can visit us at Smart Business Funding and complete our application form here.


42 thoughts on “Ways You Can Finance Your Business Without A Bank by Kenison Fatal”

  1. Greetings, I believe your web site could possibly be
    having web browser compatibility issues.

    Whenever I take a look at your site in Safari, it looks fine however,
    if opening in I.E., it has some overlapping issues.

    I just wanted to give you a quick heads up!
    Apart from that, fantastic website! https://entreprisesmst.com

  2. Wonderfujl work! That is the kind of info that are supposed to be shared around the
    web. Disgrace on the seek engines ffor no longer positioning this publish higher!
    Come on over and consult with myy web site . Thasnks =)

  3. Hi! I know this is somewhat off topic but I was
    wondering which blog platform are youu using forr this site?
    I’m getting sick and tired oof WordPress because
    I’ve had issues with hackers and I’m looking at alternatives for
    another platform. I would be awesome if you could point me in the direction of a good

    1. Sorry to say this but I use WordPress for all my blogs. But if you’re looking for some good alternatives, I’ve heard good things about Joomla, Drupal, and Blogger.

  4. Attractive part of content. I just stumbled upon your web
    site and in accession capital to claim thaqt I get in fact enjoye account your weblog
    posts. Anny way I’ll be subscribing on youir augment and even I fulfillment you acccess consistently fast.

    1. Hi. I just mainly use WordPress for my blogs but if you want to start your own blog on a platform that’s easy to set up you could WordPress or Constant Contact Website Builder, Gator by HostGator, Blogger by Google or Medium: (Best Platform for Simplicity).

  5. Having read this I thought it wwas rather enlightening. I appreciate you finding the time and effort
    tto put this content together. I once again find mhself spending a significant amount of time both reading and
    commenting. But so what, it was still worthwhile!

  6. Thanks, I’ve just been searching for information approximately this topic for a long time and yours is the greatest I have discovered so far. But, what in regards to the bottom line? Are you sure concerning the source?

  7. I would like to express my thanks to you just for rescuing me from this type of challenge. Right after checking through the internet and getting strategies that were not productive, I figured my entire life was done. Being alive without the presence of answers to the problems you’ve solved all through your article is a critical case, and ones which may have adversely affected my entire career if I hadn’t discovered your website. The training and kindness in maneuvering all the stuff was tremendous. I’m not sure what I would have done if I had not discovered such a stuff like this. I can at this moment look ahead to my future. Thanks a lot so much for your high quality and result oriented help. I won’t hesitate to refer your web sites to any individual who requires guidelines on this topic.

  8. I do accept as true with all off the concepts you have presented in your post.
    They are very convincing and will certainly work.

    Still, thhe posts are very short for novices.

    May just you please prolong them a little from next time?
    Thank you for the post.

  9. I am no longer certain the place you’re getting your info, however good topic.

    I needs to spend a while studying more or understanding more.

    Thank you for fanttastic information I used to be oon thee lookout ffor tis info for
    my mission.

  10. Hey! I just wanted to ask if you efer have any trouble
    with hackers? My last blog (wordpress) wwas
    hacked and I ended up losing several weeks of hard work due to no
    backup. Do you have any methods to protect against hackers?

  11. I think that is among the most important info for
    me. And i’m glad reading your article. But wanna commentary on some basic issues, The web site taste is perfect, the articles is in point of fact
    excellent : D. Just right activity, cheers

Leave a Comment

Your email address will not be published. Required fields are marked *

Open chat
How Can I Help You?