Sometimes borrowing money is the hardest part. No matter what business you are in, there are times when borrowing the money you need to start or expand operations will be a challenge. We’ve all had the experience of calling or sitting across from a financing lender, when they tell us they won’t be able to provide the loan we’ve requested.
This can be terribly inconvenient and disappointing, and some small businesses stop in their tracks right then and there.
It’s important not to allow yourself to be discouraged by temporary setbacks such as these. The lending world is more diverse than ever before, providing many options for financing which simply did not exist even ten years ago.
It’s important to avail yourself of all options in the marketplace. With due diligence, almost anybody can secure the small business financing they need to be successful. Here are some examples to investigate yourself.
Online lenders
There are many lenders that have cropped up in recent years who do not have brick and mortar establishments. These lenders are sometimes subsidiaries of larger, more well known financial entities.
Others are independent lenders that use the convenience and speed of the internet to provide loans to customers not well served by the traditional banking sector. Do your research and get some quotes.
You may be surprised at just how easy it is to secure a loan this way. It’s important to pay these loans off quickly, as expenses can rise. Make sure to find a lender that won’t change you for early repayment.
Banks/new banks
It is important to try to make your bank work for you. If you have a relationship with an existing bank, use your loyalty as leverage. If they will not supply your loan, take your business elsewhere. More than once, this author has had loans filled simply by threatening to remove all business. If that doesn’t work, go to a bank who is more generous to businesses in need of cash infusions.
Private lenders
The P2P Lending circuit is very vibrant in the United Kingdom. There are lending brokers who serve many different private and business clients. They provide loans by making the loan request available to a panel of individual and group lenders, each of whom can ‘bid’ on the loan.
Using a reverse-auction system, the most beneficial term offered is the one that ‘wins’ the contract. This format favours affordability and fairness to the borrower. There are many of these companies, each with different terms and benefits. Find the one best served to your business and receive a loan quickly.
There are lots of options these days, and this list is far from exhaustive. Don’t let being denied a loan stop you from building your business. With time and a little extra effort, you might be able to find a better loan than you thought possible. There are programs aimed at internet and mobile users, so look at those to find out what is new and best.
Further reading on financing
