Six Business Finance Options for When the Bank Says No
New business owners or entrepreneurs may encounter refusal from a bank when seeking financing for their company. If this has happened to you, you’re not alone. There are many alternatives to business financing though, so read on to learn more about how you can access the funds you need to support your growing business.
The first option is The Small Business Administration. This agency works alongside entrepreneurs to offer advice, mentoring, and resources, in addition to funding. Utilize the SBA for hand-on assistance in growing your business. Individuals are asked to submit an application, business plan, credit check, and character evaluation to the agency before the agency will work with clients.
The second option entrepreneurs can use to grow their business is the people they’re close to. If you have friends or family willing to support your endeavors, reach out to them and request financial assistance. Just remember how borrowing money can affect your relationship with friends and family before moving forward with this option.
If you don’t want to ask friends or family for finances, consider asking a private investor. Private investors make careers out of investing in small businesses. Pitch a business plan to a venture capitalist or angel investor in exchange for a business financing deal.
When the bank says no, small business owners can seek a home equity. These loans are achieved through an individual’s property. Take a home equity loan out and receive funds that match the value of your home. Just be sure to pay back the loan promptly, or else your home could be on the line.
High interest credit cards are another option for when the bank declines your loan application. High interest credit cards offer cash advances that can be used to finance small business purchases.
The final option is working with us at Shop Commercial Mortgage. Our team of financing experts can help you fund your small business and entrepreneurial endeavors, so reach out to us at 813-516-5210 for more information.