Money is important to start and run a business especially small businesses who want to survive the very competitive business world. Entrepreneurs who are on the threshold of a new business venture must work out in finding success by obtaining sufficient funds.
Probably, the first thing that comes to your mind when it comes to getting a capital to run a business is through borrowing or lending from a bank and or from financial institutions which are in fact, the ones who are responsible for lending Small and Medium Enterprises (SME’s) to roll out their business and have a good start by lending them funds in the form of alone. Although banks and financial institutions are very strict when it comes to giving you approval for your loan application, there are actually alternatives that you can try.
In this infographic article from Qupital SME Finance, let us show you some of the best and quickest alternative loan guides that can help you in making the best decision that is best to fit in your business needs.
- Bank and financial institutions
- A need to invest in funding at the early stage or high growth phase of your business
- If you require a mentor to help you grow your business
- If you do not have a physical product or service, but you have a good idea about your business plan
- If you are willing to give up a percentage of your business to the investor.
- Can help you in the early stages of your business to get off the ground
- If you are able to pre-sell a product or service to your target audience as some sort of your marketing experiment.
- Also, if you are able to harness or gather an audience in the social media to convince the crowd funder of your target audience’s testimonials
- If you are not willing to give up a percentage of your equity in your business.
- More funding is needed as crowdfunding is provided in smaller amounts than a comparative and reliable investor.
- Business loan
- You have a flexible and quick solution that can be repaired in fixed installments and terms.
- If you need a cash injection to purchase new equipment for your business, new machinery, new company vehicles, or to fund your marketing campaign, and also to fund seasonal fluctuations in trade.
- Asset-based lending
- If you can fun an expansion based on your current business assets
- If you want to make your business grow bigger.
- If you need to purchase new or additional property
- If you need financial assistance for your export and import needs
- Peer to peer lending
- You need to fund a specific project
- If you have more time on your side when you cannot get money in your bank within the fastest time
- If you are not worried about flexibility, as more people are getting involved in the terms are more rigid of extending.
- If you have been in business for a couple of years already.