If you are looking to really take the next huge step in your career and start your very own business, you might be wondering what options there are to get that first lump sum of cash to get things off the ground.
Sure, you could stroll over to your nearest bank and ask for a traditional bank loan, but in 2019, there are so many more options are fingertips. The reason why you may want to consider other options are pretty obvious.
First off, because banks are massive corporations, they have pretty strict guidelines when it comes to who is able to take out a small business loan. If you have any marks on your personal credit, for example, you could be a sitting duck.
On top of that, traditional loans are hard to apply for and can take a long time to gain approval. If you are looking to strike the market fast, their archaic way of business might not suit your needs.
Finally, because banks have a lot of costs to keep their doors open, interest rates can be quite high. Making it harder to actually start making a profit with your brand-new business.
So, what are the alternative options at your disposal when it comes to funding your business?
Continue reading to find out.
A great way to cast a wide net to a multitude of different funders is to try and get your business crowdfunded. This works primarily for businesses that are just starting out and something that is new and exciting, that’s the way to attract a large number of interested parties, which can lead to huge amounts of money being lent to you for your business.
There are many sites that you can considering if you want to try to crowdfund your business, but it is important that you do the work beforehand. If you want to crowdfund, you’ll probably only get one shot to start a successful campaign, and you’ll want to have a great angle to convince funders to give you their own hard-earned cash.
If you believe that you have a truly special product or brand that you are looking to get off the ground, one option to consider is to reach out to the internet for help.
Some of the most popular recent products have been funded thanks to online campaigns, and you can do the same. From smartwatches to coolers, travel jackets to videogames. If you think you can create an exciting and attractive campaign, it might be time to make the internet work for you for once!
Online loans are a great option because they often require less to gain approval than traditional bank loans and can be approved so quickly. Instead of having to wait in a long line at your local bank, simply enter your information online and get started.
Once your application is submitted, online lenders will often immediately let you know whether or not you have been approved. If you are approved, you will be able to decided to quickly and easily have the money transferred into your account.
Another fantastic benefit of online loans is that because they are not connected to a brick and mortar bank that has tons of expenses on top of having to meet their bottom line, you could very likely get a better interest rate than if you were borrowing from an established bank.
Credit from vendors
Vendor credit is the largest use of capital from business to business and is still one of the most popular alternatives to personal and small business loans. In fact, the Small Business Administration reports that it’s the single largest source of small business lending in the United States today. If you are looking to start up your business, you can gain access to short-term financing from vendors with minimal requirements.
It can be an invaluable solution for you that can provide your business with the ability to purchase products and services you’ll need upfront while allowing your business to defer payments for a later date. It can be something of a financial risk if you cannot afford to pay back your deferred payments, but what kind of loan isn’t a kind of risk?
A microloan is an easier and faster way to get money than a traditional business loan. They have been made even easier to obtain thanks to lenders online. It is important, however, to keep in mind that the term micro refers to the size of these loans. Microloans typically are usually worth under $50K. If that is not enough for you, you will probably want to look for a different kind of funding, if they are right for you they can be used for a number of things.
If you need money for equipment, inventory, supplies, paying employees, etc., microloans can be a great option and are certainly something to consider.
Car title loans
If you have looked into several options and have come up short, one option that could be a great help to you is a car title loan. A car title loan is very different from the other options on this list because they are small secured loans that are tied to the value of your car.
If you are looking for a quick injection of cash to make some small improvements or need fast cash to pay for your business’ rent, a car title loan car be a great option.
Basically, the way they work is quite simple. You apply for your loan by using your car to qualify. That means that in order to qualify you must have a car with a lien-free loan. Car title loans typically do not require a credit score check, which can be a great thing for some who are struggling with less-than-ideal credit scores.
It is important to keep in mind, however, that because car title loans are secured loans, if you fail to repay your loan within the payment term provided to you by your lender, you do run the risk of having your car repossessed.
In the end, all of these options are meant to help you best start, continue, or run your business. If is up to you to decide which option is best for you, or if the best option for you does not exist on this list at all. Either way, it is important to know that there are a plethora of ways to get the funding you need to help get your business off the ground.