While we all know it is very difficult to get a loan from a bank for business startup because the lender expects the borrowers to have:
- A track record to generate profits from the loan
- Good credit rating
Moreover, commercial banks are pretty fussy about generating a startup loan because of the above-mentioned reasons. These are the typical responses cited by the banks to young business owners who are seeking a loan to start their business.
Is there any alternative?
Well, are there any other options available in the market? Well, most of the entrepreneurs start up with their savings, or they get loans from their relatives and family members. There are also creative ways to fund your business like baby sitting or renting a room from your apartment. But the best option is finance by non-banking sector
Why this sector has spurred?
The void in the banking sector has spurred the growth of alternative lending. In this article, we have mentioned the best 3 ways to get your share of pie:
Bootstrapping :- In the ideation phase, it is better to use your own financial resources, like money from a saving account. Wise deployment of money is important.
From friends and family:- If you don’t have saving account or doesn’t have enough money-what you can do to fuel business needs is to ask friends and family members. Ask them to invest in your business proposal. In most cases, they wouldn’t think twice in investing in your business. If the enterprise succeeds, do give rewards to these lenders. It will be a Thanksgiving gesture.
Small business lenders:- there is various companies that offer Cash Advance Loan In Florida, Texas, California, but you need to learn about them. These companies offer funds to small business owners in the startup stages, especially if you don’t qualify for a bank loan or aren’t ready for venture or angel capital funding. They offer you loan with no strings attached policy.
What you have to do?
The loan task can be made easy by clearly illustrating them what kind of business you are doing. Create a business model and showing to them. In a nutshell,try to put your best foot forward to sell your business with regard to references, history of paying back loans. Providing your credit score is the best way to secure loan.