Where to Find Alternative Lending Sources for Your Small Business
So, you’ve achieved a lifelong dream of starting your own business. This accomplishment is the culmination of tireless work and dedication. Now, the real efforts begin. In order to turn your small business into something profitable, you need everything to come together smoothly. In most cases, to get your business off to a good start and to build it into something sustainable, you need some financial assistance. There are many sources of funding you can secure, but you don’t always have to go the traditional route. In fact, if banks and other lenders have turned you down for loans, you should seek funding from alternative lending. There are many legitimate ways to get the money you need for your new venture.
Equipment Sale Leaseback
If you already have some good equipment to get your business going, such as computers, copiers and other electronic equipment, you could already be sitting on some cash. One option of alternative lending to think about is equipment sale leaseback. With this method, you can sale the equipment to another party for a lump sum and then lease it right back. That way, you have the cash payment you need, and then you can pay it back over time through a lease. You keep the equipment you need, plus, you have the money you’re looking for to jump-start your business in other areas.
Microloan
Perhaps you don’t need hundreds of thousands of dollars to get your company on the right road. If you need a smaller amount, a microloan is a viable option. While microloans can get you larger amounts, their specialty is more modest loans. You can use this funding for equipment, office rent, payroll or anything else your business needs. They’re ideal if you have lower credit and haven’t had success with traditional loans in the pat.
Factoring
This type of financial assistance can help you get a lump sum of cash and eliminate a portion of your business that may be causing you stress. With factoring, you sell your outstanding accounts receivable to a third party, known as the factor. The factor pays you a sum of cash and then takes responsibility for collecting on the accounts. Now, you have some money to spend on your business, and you can do away with the hassle of trying to get delinquent accounts to pay you.
Alternative lending can help you get ahead in your small business. Consider these options for your business when other opportunities haven’t worked.
