Financing Options Other Than a Business Loan
It's not always easy to get a business loan. Whether you run a startup company with limited capital or you just don't have amazing credit, there are lots of barriers to getting a good loan these days. Thankfully, if you need funds, business loans aren't your only option. Far from it, in fact. Here are a few other ways that you can get the funding your business needs.
Business Lines of Credit
First, you might consider getting a revolving line of credit. This option is similar to a loan, but it has one difference. With a traditional loan, once you pay back the money you borrowed (plus interest), the loan comes to an end. With a line of credit, you can borrow as often as you need to borrow.
Say, for example, that you have a credit limit of $5,000. You borrow $1,000 to restock your inventory. You now have $4,000 to borrow from. However, if you pay back that $1,000, then your limit goes back up to $5,000.
Credit cards are one example of a revolving line of credit, but you can find other options, too.
Invoice factoring provides another alternative to business loans. That's because invoice factoring isn't a loan at all, but it is a way to secure funds when you don't have a lot of time. With invoice factoring, you essentially sell your invoices to a third party at a discount. You obtain the cash right away, and then the factoring party makes their money when the invoice is paid to them in full. This option appeals to business owners who don't want to go too far into debt.
Another option is crowdfunding, although some businesses may find more success with this option than others. If your business has a lot of local rapport, then crowdfunding may help you secure the money that you need. People often use crowdfunding to raise business startup funds. It can provide them with the capital they need to get their companies up and running.
Why Not a Business Loan?
You have several options other than business loans to get funding for your company. However, if you're avoiding business loans because you assume that you wouldn't qualify for one, you may want to take a second look at your options. Community banks and credit unions, for example, often provide business loans to people who might not otherwise get them, including people with so-so credit and people in riskier businesses.
Let Bundlefi Help
Whether you want to pursue a business loan or choose from your other options, Bundlefi can help you find your financial institution. We work with financial providers like community banks and credit unions. We only work with smaller, personalized institutions instead of megabanks, and we connect loan seekers to the institutions that best provide what they need.
Want to learn more? Start exploring Bundlefi today to get started.