Starting a new business can be an exciting prospect, and eventually, it can be a rewarding one, as well. Getting your new project off the ground, however, may be challenging – especially if you are having trouble getting the funding you need. If conventional lending options are not being extended to your business, consider the following alternative financing possibilities instead.
You can join a group that lends money to each other for business ventures. Such groups have existed for a long time. The purpose of starting such a group might be to help support other small businesses once you begin to turn a profit. Members may also wish to lend a hand to others like them who might need assistance, such as young women entrepreneurs.
Small Business Loans
Many banks consider small businesses and startups to be a risk for loans, but the Small Business Administration (SBA) will often guarantee loans to small businesses. They even offer a Lender Match feature on their website, which helps small business owners find lenders for their loans. You don’t have to get such a loan from a bank; you can secure it from an alternative financing institution instead.
Purchase Order Financing
Since they generally don’t have much cash flow, new businesses may find it difficult to take large orders. If you use a purchase order financing company, the funds may be extended to your suppliers. This enables you to take larger orders and start building your business.
Accounts Receivable Financing
Accounts receivable financing, also known as factoring, allows you to sell your accounts receivable to a company called a factor. The factor charges a fee to take on some of your accounts receivables. In turn, you are supplied with the cash flow you need to run your business.
If you are starting a business, or if you need funding for a small business that is experiencing cash flow issues, contact Business Capital Providers today. We will help you to explore the options in alternative financing for your business.