“Alternative financing” for businesses can have different meanings to different people. The information below is intended to help you begin brainstorming alternative business funding that you may not have otherwise considered.
The more you know about possible alternative sources of financing, the better positioned you will be to find the resources you need to be successful. After reading the below information, do your research and talk to your accountant or other professional advisor to learn more.
Learn more about the forms of alternative financing available by browsing the topics below.
Deciding whether you should lease or buy will depend on your situation. Each business is unique, and the decision to buy or lease business equipment must be made on a case-by-case basis. Be sure that you explore your leasing options and thoroughly understand the advantages and disadvantages of leasing, and talk to your accountant before making any decisions.
- The requirements for receiving funds from a government loan program are similar to what traditional banks are looking for. After all, government loans are funded by taxpayer dollars, and the need to make sound loan decisions is just as true for the government as it is for a bank. As such, make sure that you’re prepared to talk to a lender regardless of what source you are requesting the funds from. One of the worst things that you can do is to approach a lender – whether the government or a bank – and not be prepared; this only serves to send a message to the lender that you’re not a good credit risk. Here’s the good news…There are resources right here in your community that can help you assess your readiness to talk to a lender
- Many government loan programs require that a bank be involved in the financing. It’s important for you to understand this for a couple of reasons. First, you need to make sure that you’re prepared to talk to a lender; failure to do so can diminish your chances of securing the funding you need (see #1 above for help with this). Second, the more you understand what government loan programs are available the better prepared you will be to talk to your banker. The reality is that not every loan officer will know about all available programs. For this reason, if you’ve done your homework you can potentially be in a position to educate your banker about programs that they can use to turn their response to your loan request from a “maybe” into a “yes”. Before you talk to a lender, take time to learn how specific government programs can benefit your bank.
- Do your research and make sure you understand all of the programs that are available. You can’t utilize a program that you don’t know about. To help with this, we’ve compiled information about government programs on the Financing page.
A few sites that you can explore are included here. These sites are being provided for convenience only. No representation or warranty is made about these sites; visitors should conduct their own due diligence before using any service. peerbackers; Kickstarter; Prosper.com; Kiva.org. Learn more about Crowdfunding.