Get Business Funding Without Going to the Bank

Did you know that you can get funding for your business without going through the bank?

The first place people think of when it comes time to getting the financing for their businesses is none other than the bank. It definitely makes sense. However, due to serious economic downturns, banks have made it more challenging, and at times, almost impossible for people to acquire the financial support they need. The good news is that there are other ways to get the business funding necessary to keep your company going strong.

Join the Crowd

Crowdfunding has become a popular and creative alternative to getting financing through a traditional bank. This method allows you to raise small amounts of money from a large group of people at one time. The key is to interest them in your business, so being able to market your idea well will greatly increase the opportunity to receive a measure of monetary support. You may want to keep in mind that crowdfunding sources are public, so this may not be the best option for those seeking to maintain a level of confidentiality.

Look into Microloans

Another viable option to finance your business is to get a microloan. This kind of loan is provided through local, community-based intermediary organizations and is an ideal business funding source for those whose attempts at securing a bank loan were unsuccessful. You can obtain the list of intermediary names from your local Small Business Administration (SBA) district office. The average loan amount is typically $13,000, but can go as high as $50,000.

Use a Credit Card

The easiest way to get the money to start up a business is to use a credit card, provided you have good credit. Advertising, postage, suppliers, and equipment can all be quickly purchased with a credit card. Additionally, you can even give yourself an instant loan up to your credit limit, if necessary. However, the most significant risk of using this funding method is incurring enormous financial debt that must be paid regardless of whether your business is successful or not.

Get By With a Little Help From Your Friends

Asking for help from those closest to you, such as family and friends, is actually a frequent and reliable source for business funding. However, just like any other formal source of lending, it is always best to have a solid business plan with goals and projections before attempting to borrow money. Your plans should also include a way to pay interest on the funds that your friends and family have provided.