Each business or a small company needs a particular amount of money or capital to start off. Entrepreneurs who are on the threshold of a new business venture must work out in finding the success by obtaining sufficient funds.
Banks and other financial institutions 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.
Below are some of the best alternative loans that you can try compiled by the Qupital SME Loan.
If you are running low on cash and wants to get some help by availing alternative finance for your business, there are various options available that will depend on four aspects which are your reason why you needed a loan? The size of your business, the life stage of your business, and how much do you want to loan?
In this infographic article, 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
CROWDFUNDING
- 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 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.
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.
ASSET-BASED LENDING
- If you can fun an expansion based on your current business assets
- If you want to make your business grow
- If you need to purchase new or additional property
- If you need financial assistance for your export and import needs
