LONDON – FINANCE – If you need small business funding and you feel like acquiring it from a traditional bank or lender isn’t the right way, there are other ways to obtain financing. Using your creativity to get the necessary funding for running your business is certainly a great way. But you don’t have to get too creative since we’re going to share some of the best nontraditional financing options with you today.
At the end of the day, it’s up to you to do everything in your power to obtain financing for your small business. So please take these suggestions seriously, try the ones that sound the most promising to you, and you should have no trouble getting the loan you need to take your business to the next level.
Fund Your Business with Crowdfunding
Over the last five years, crowdfunding has exploded all around the world. In the past, businesses had very limited options when it came to funding. They could contact a traditional lender, a small business association, or angel investors. Things are very different today and it’s now possible to fund your business through crowdfunding.
As an example, let’s say you need financing to fund your new microbrewery. You’ve created a great tasting IPA and not only do you plan to sell it online, you also intend to make deals with local, national, and international distributors around the world.
At first, it may seem daunting to get financing for a microbrewery. But if you have a product that people really love, you can set up a crowdfunding page and ask your target market to help fund this venture.
Obviously you’ll have to share a compelling story with the world to convince them that your business is a good investment. Offering incentives at different price levels is certainly wise as well. At the end of the day, if you have a good product that people tend to enjoy, they’ll have no problem putting up their hard-earned money to help you get your business venture off the ground.
If you haven’t considered crowdfunding at this point you’re missing a huge opportunity. So look into it sooner rather than later and see if it’s a viable option for your business.
Consider Peer-To-Peer Lending
Peer-to-peer (P2P) lending is now easier than ever to accomplish with the advent of the internet. Some amazing websites have popped up over the last 10 to 15 years like Lending Club and Prosper that make it simple for borrowers to connect with potential lenders from all over the world.
Again, you’ll need to convince the lenders that it’s a safe bet to loan you the money for startup costs and other expenses. So share detailed plans with the lenders on the peer-to-peer website, make your story compelling and interesting, and you should have no problem finding people willing to fund your startup.
P2P lending is not a sure thing by any stretch of the imagination. To have a better chance of achieving success, always be honest with everyone about your story, share your plan to pay the money back, make sure you have a good credit score, and share your listing with as many people as possible to achieve your financing goals.
It’s now possible for small businesses to get short-term loans for as much as $10,000 or less. These microfinance options have gained popularity over the recent years and they’ve helped many small business owners get their companies off the ground. Some microfinance lenders to consider include Kiva, Accion USA and Grameen Bank to name a few popular options.
On the surface, it may seem impossible to get small business funding. But if you use the creative ways we’ve shared today, you’ll have an easier time achieving your business financing dreams.