Money Available for Small Businesses


There are any number of traditional and non-traditional ways to obtain small business funding. The most obvious is to apply for a small business loan through a qualified SBA lender but this route is time consuming and usually disappointing unless you are over collateralized and have an excellent credit rating. However, if you are granted and SBA loan you are off to a good start.

Other ways to fund a start-up or an existing small business include the old standbys, ask your friends and family, take out a home equity loan, sell some assets or use your credit cards. These are great was to go but they are limited in the amount of cash they can produce but, if they get you up and running go for it!

Angel investors are another possibility. Although family and friends could be termed Angel investors the term is really used for individual investors who utilize their own money and usually to help start-ups or small businesses. You have to look around and find the investor, some are on-line but most are working professionals in your own area. Be prepared to give a chunk of your stock to your Angel investor to secure the cash infusion.

If you’re looking for upwards of a million or more then a venture capital company might be a great way to go. These companies will work with you, they have access to a lot of business expertise and their mission is to make sure you succeed. Working with a venture capital company is a lot like working with a bank but be prepared to have to answer a lot more questions about your operations.

Most people don’t know this but credit union can lend to small businesses. These loans are usually less than $250,000 but they are more easily obtained than an SBA loan through a traditional bank. Credit unions tend to be more customer friendly when it comes to loans than banks too.

Crowdfunding is also a great place to look for capitol. CoFolio, Upstart, Kickstarter, and Indiegogo are a few of the well know sites. More and more this is becoming a very viable borrowing option for small businesses and there are several on-line sites available where your ideas will be looked at by millions of potential investors.

There are several little known but growing lending markets out there which include non-profit micro-lenders, companies like Whole Foods are providing loans to local growers and producers, peer to peer lending and on-line pawn shops are also options to explore. If you are really determined then there is probably a viable lender out there for you.