Sunday, 27 January 2013

Unconventional funding avenues for small business

Acquiring capital is a challenge that virtually every small business faces at some point or another. Financing a startup is not always easy, but, traditionally, entrepreneurs have relied upon small business loans to get their new companies up and running. Today, however, securing such capital is not an easy task. Ask any small business owner how they would obtain capital for operations or growth - chances are they would reply through a bank loan, or debt. Unfortunately this traditional avenue of capital has been, and continues to be largely unavailable for small businesses. A glance at the numbers from a recent study shows that: 

·         78% of small businesses call it "difficult" to raise debt financing
·         56% of small businesses are denied bank loans; and
·         45% of small businesses were forced to transfer personal assets to their business
Obtaining financing for a small business even in a healthy economy can be challenging, since many business owners lack operating experience and solid credit history. Today's tight lending environment is making it even tougher for entrepreneurs to raise money to operate and grow their businesses.
Both entrepreneurs and funding providers realize that the lack of available credit is hampering their ability to make this happen. Solutions exist, but they often require some out-of-the-box thinking and aggressive efforts on everyone's part.
If a traditional loan is not secured, small business owners may also be able to access alternative sources of capital with some aggressive efforts and out-of-the-box thinking. Listed are a few to get started on:
Local Communities:
One of the most widely overlooked sources for small business capital is the local community. In recent years, there has been a unified push for consumers to support local small businesses and to 'buy local'. There's no reason why people shouldn't be able to easily 'invest local' as well. Statistics show that 7 in 10 small businesses that raise money from their community are successful.  
City & State Resources:
There are lots of government agencies and non-profit organizations that financially support small businesses. You can check with the respective city and state economic development agency to see if there are specific programs or grants associated with your particular industry cluster. 
Funding Matchmakers:
The landscape of small business capital is quickly expanding. This has spawned a new breed of companies focused entirely on helping you get matched with the best type of funding for your business. Companies like FundWell, Lendio and Multifunding are dedicated to advising you on all of the options on the spectrum.
Although bank lending to small businesses is on the wane, new and innovative alternatives have surfaced to the mainstream. They are readily available to those open to doing things a little differently.


    small business loan

  2. Very nice post having full information about Origination Services and Banking Outsourcing. Thanks for post.

  3. Cut thru the red tape with"NOW Business

    Funding for all your
    Business funding
    , merchant cash advance,
    ACH funding if you dont take credit cards, equipment leasing, accounts receivable funding,purchase order founding,
    contract funding and specialized broadcaster funding.

  4. Thanks all over again intended for another” sense good, exceptional, that you have good individuals these days story”. Most of us study a great number of experiences that are bad in relation to individuals in addition to precisely what many people accomplish to people. A haphazard behave involving kindness is usually this kind of thing to know in relation to. Tranquility in addition to benefits.
    Business consultancy dorset

    With a proven track record and our specialist knowledge we will prove our efficiency! We will show you the way to Success Business restructuring dorset.We pride ourselves on professionalism and knowledge. We will apply all our resources and commit to your success Business Rescue dorset.

  5. Discuss your target market and how you are reaching that market. Grant money should not remain stagnant, so the proposal committee needs to see how you will put the money to good use in expanding your business by gaining new customers. commercial mortgage loans

  6. Thanks for this great posting! Now it is easy to raise funding for the startup business or grow the existing business. there are lot of private lenders provide the financial solution for the business. Selective Financial Services is one of the most known financial company help to the fund seekers for project funding.
    simple financial solutions

  7. The way you shared your knowledge here is amazing!

    PIC Bonus

  8. Do you seek funding and the bank you deal with on a day to day basis has refused to help you?

    You might qualify for our new concept and get funded with our help.
    Our focus is on socially responsible, green, energy producing projects. The facility is however not limited to these basics, as long as you have a strong management team, a viable business plan, and exceptional growth potential. We also enable finance for growth and consider any commercial business with the potential for a high ROI already within the first year. And we can work with any legal financial transaction offering an above average return on investment.
    If your requirement is within these basics, please let us have your answer to this simple question: "Would your own bank provide you with finance, if we guarantee for your loan through Deutsche Bank?"
    If you see chances to get funded on that basis, then you should tell us how much money you seek. We will engineer a solution for your immediate funding requirement and explain how you can put this concept to work for you.

    Send an email directly to now and visit