Two Best Radical Small Business Finance Tips
Raising money to get your business off the ground is one of the many things you need to do at the initial stage of of your business venture. Money is hard these days, especially after the economic downslide United States has suffered recently. Most banks and lending firms are not keen on funding any business start ups that they deem as risky. Some people, even with the backing the loan programs of the Small Business Administration, still have a hard time securing funds they need to start their enterprise. Conventional small business finance tips don’t apply at all times.
While getting money through loans from banks and lenders or borrowing from friends and relatives seem to be the most popular solution to such circumstance, not every one enjoys such luxury. People with bad credit rating struggle to get their bank loans approved, much less qualify for one. And not everybody have relatives and friends who can readily spare some cash on the fly. But if you are prepared to do things out of the norm and if you believe that there is no box, then you can try this following radical small business finance tips.
Look for them angels. Angel investing may not be a new approach when it comes to financing a business. But it is not widely practiced either. And there are two good reasons why. One, it is hard to find someone who is willing to take a financial risk by shelling out most, if not all, of the money you need to finance your business project. Two, angel investors, if you found ones who are very eager to take the jump with you, will demand a large piece of the company’s equity and eventually a huge portion of the company’s management responsibilities. If you are willing to risk that much, then perhaps this is the financing vehicle for you.
If you can’t find angels, try your peers. Peer to peer lending is fast becoming a popular method of business financing. In this particular scheme, you put out your loan request to a peer to peer lending site, along with how much you require, your preferred interest rates, the purpose of the loan, and your preferred repayment process. Your virtual peers, if they find your project worth investing, will pool in their donations until the desired amount is reached. While there are many peer to peer lending sites all over the world, majority of them cater to underserved individuals who come from socially and economically poor backgrounds.
by Chris Devers