Alternative sources of business finance
Consider alternative funding options including family loans, part-time jobs, re-mortgages and credit unions.
If your business has a poor credit rating, is highly leveraged or has recently been turned down for bank finance - you may find non-bank finance easier to obtain, more flexible and possibly cheaper.
What are examples of non traditional financing?
Alternative financing options refer to all the non-traditional methods businesses can use to secure funding outside of bank loans.
Support from family and friends
Family and friends can offer flexible, long-term, and low-cost (or free) credit. You should make sure that both parties clearly understand the terms of any loan. See financing from friends and family.
Venture capital and angel investments
Aim to attract outside investors for example by selling shares to business angels or venture capitalists. This can provide expertise and short-term finance without needing repayment. However, it usually means giving up shares in your business. Investors may want some say in how it's run. See shares and shareholders and equity finance.
Crowdfunding
Crowdfunding is where a number of people each invest, lend or contribute small amounts of money to your business or idea. If you seek funds this way, you would typically set up a profile for your project on your website. Then, you would use social media and networks of business, family, and friends to raise the money. See crowdfunding.
Grants
It may be worthwhile finding out if you're eligible for a grant. You may need to fill out detailed forms but, if you get the grant, it will be time well spent. You may be able to get grants to help market your business, buy equipment, or renovate premises. See grants and government 91香蕉黄色视频.
Secured financing
You could consider taking out a second mortgage on your home although, if your business fails, you could risk losing it. Credit unions provide cash at reasonable repayment rates or you could approach a micro-finance lender.
Pitch competitions
In a pitch competition, entrepreneurs present their business ideas to a panel to win cash prizes or investment. Each contest has specific rules and participants compete against others. Even without winning, these events offer exposure to venture capital and angel investors.
Keeping your job
You could also keep your current job. Alternatively, find a part-time job and run the business in your spare time. This can be tiring as you will be working long hours but having a job will guarantee an income while your venture takes shape. See start a part-time business.
Review your financial strategy
The important thing to remember is that if you borrow money, always check the terms well. Don't borrow more than you can realistically repay.
If someone has turned down your request for money, review why you haven't been successful. Perhaps you need to rethink your idea to make it a more attractive option.
For more information see business financing options - an overview.