3 Alternative Sources of Funding

Alternative Sources of Funding

 

According to Small business monitor survey 37 percent of small business owners expect to grow their companies in America. In-fact, 35% people are planning to hire staff and 44% to make capital investments. Especially these days’ small-business owners would be wise to familiarize themselves with credit alternatives. For secure financing to buy a business, fortunately there are using other ways than banks. If you can’t afford to finance your company’s growth the question is  what should you do or where to start ?

Here are following financing options to consider:

Community Development Credit Unions
Crowd sourced Funding Sites
Peer-to-Peer Lenders

Community Development Credit Unions 

Socially minded investors and lenders push money to community development financial institution, such as credit unions which serve low income communities. These can be very beneficial for the businesses that lack the access to traditional methods of financing. If you are looking for a loan you should check the website of  “National Federation of Community Development Credit Unions “ to fnd a small business friendly credit union in your locality.

Crowd sourced Funding Sites

Each crowd sourced funding site has its own milieu. Websites like “Kick starter” let you post information about your business idea and seek startup funding from small donors, are proliferating. If you have built strong connections with contacts on social networking sites, it is really good for you and it easy to broadcast information about your financing campaign on websites like Face book. Most of businesses types are focused on artists, musicians, and social ventures but Kick starter, App back, Profounder, and 33Needs may have the money you're looking for.

Peer-to-Peer Lenders Networks

If you are unable to access a small business loan from a bank then you may be able to borrow money from individual investors if you are looking to get better returns than they might help you in this. You can also make money through peer-to-peer lending networks sites such as Lending Club and Prosper. Lending Club will connect only credit-worthy borrowers with lenders. If you have good credit score and also been diligent about paying bills on time then they affects your interest rate. You may easily find the deals on these sites.