The majority of new ventures fail to last longer than a few years, and small businesses have been left to grapple with paucity of lending facilities post the recent recession. Business owners should therefore stay up to speed with the latest business funding strategies to keep their ventures in competition and in a healthy financial state.
When big banks fail to offer support, new ways soon emerge to keep businesses going. This is how alternative lending avenues have mushroomed, especially online, and rescuing small businesses facing difficult times. With these platforms, no small business ought to go without funding for too long. There are no long lists of collaterals, requirements, due diligence, high credit scores and impeccable revenue histories to check, and the loan disbursal can happen on the same business day.
The first strategy can be to look at the internet, which has proved its versatility again when it comes to financing and loans. Fintech websites offer the most convenient, one-click approach to applying for a loan. The sites may even match an applicant with several suitable lenders. Another interesting model is that of peer-to-peer lending which is today a big industry.
Crowdfunding is a hugely popular way to raise funds for new ideas, concepts, innovations and more. Though it is more oriented towards B2C ventures, there also exist crowdfunding with stake ownership features. The amount of money raised here comes in small amounts, and is part of a campaign that must be created and managed successfully. Donors here get compensated with goodies and discounts.
For emergencies, a merchant cash advance can save the day. These are typically granted in return for future sales. The advances are small and given for short terms and the interest rate can be rather high. The option however is worth knowing to tackle any urgent cash requirements that may arise in the future.