Aug 14, 2020 MicroBilt News
The decision to start your own business is one that is often made with quite a bit of excitement and anxiety. It’s not just about what you’re going to do for your business and how you’re going to make it work. It’s also about how you’re going to fund your business and provide it room to grow.
There are so many exciting things to consider and look forward to. There are equally many question marks you’re going to need to clear up to get your business off the ground.
The Credit Challenge for Building Your Business
It takes a lot of money to get a business up and running, not to mention handling the growing pains new businesses experience as things begin to take off. These things require cold hard cash. Unfortunately, during the pandemic, when so many businesses are shuttering their doors forever, banks are doubly reluctant to lend to what they view as risky ventures and start-ups. This means you’re going to need to look outside the usual box in order to get the funding you need for your business.
Alternative Funding Sources to Avoid
When the traditional resources, like banks and venture capitalists, aren’t giving you the “love” you want, it’s easy to turn to less savory options. Credit cards are not a great option for funding your great idea in business. Not only are the interest rates difficult to overcome and manage, if the business venture fails, but it can also ruin your personal credit as well. Not to mention, the entire ordeal can leave you even deeper in debt thanks to the high-interest rates most credit cards carry.
Non-Traditional Lending Options
Rather than looking to your credit cards to fund your business venture, it’s time to think like an entrepreneur and seek funding from non-traditional lenders that are available today. Some options available include:
- Peer-to-peer lenders.
- Angel investors.
- Partner financing.
- Community and government grants.
These types of financing solutions for businesses bypass banks and other traditional small business lenders to help you get funds faster (in many situations) and with fewer hoops to jump through to prove your worth.
If you’re concerned about your personal credit history casting a shadow on your business building efforts, consider seeking out lenders who use alternative credit reporting, like the PRBC credit report that uses different criteria to predict your success as a credible candidate.
Are you ready to go beyond the basics and seek alternative credit reporting to help you get your business up and running, even during a global pandemic, so you can get your products and services out there to help people today? Alternative funding, through one of these or another source altogether, might be the ideal solution to help you make your business ownership dreams come true.