The BizFilings blog covering business tips and trends.
Is Funding Gone? A Few Places You Can Still Look for Capital
Published on Apr 22, 2009
Check out 'Is Funding Gone? A Few Places You Can Still Look for Capital' at 'Time to Start Up,' the small business blog by BizFilings.
It doesn't matter if you're starting a new business, looking to grow your current venture, or just trying to make ends meet these days - we all need funding and it's harder to come by now than before.
Even though some banks may be tightening their lending practices, there are other places you can look for funding to start or grow your business. We'll take a look at four alternatives to traditional bank lending. In this post I'll talk about the first two, and we'll cover the last ones in the next post.
Also sometimes called Social Lending; this option has been around forever. Your friends and family are a good place to begin to ask for start up money. Depending on your relationship(s), this may be an easy conversation or it may not.
There are companies out there that will help facilitate lending agreements between you and your family members or friends. One example is Virgin Money, based out of Waltham, Massachusetts. They act as a facilitator and make sure proper loan documentation and agreements are in place to support and protect the interests of both parties.
Credit UnionsCredit unions are nonprofit cooperative financial institutions, and thus tend to beat traditional banks in terms of interest rates, and generally have lower fees and closing costs. They may also be subject to different lending rules than a bank which may make it easier to get a loan through them.
The only drawback is that most Credit unions will require you to join as a member in order to get funding, or to get the lower rate.
So start looking at what your alternatives are. Even though times may be tough, it's not impossible to get capital for your business needs. We'll talk about another two options in the next post, so stay tuned.