Obtaining a loan from a bank can be a difficult experience. First, there is a detailed and often-intrusive application process to wade through. Second, it may take some time for a funding decision to be rendered. And, finally, when all is said and done, you may be denied a loan.
Fortunately, there are other financial products besides loans from a bank available to small businesses. Furthermore, there are other types of institutions that provide these financial solitons.
Common Types of Alternative Financing
A whole spectrum of options is available to small business people today. Here are just a few of the common options that are available:
- Invoice Factoring. Proceeds from the sale of your unpaid invoices to a funding agency.
- Merchant Cash Advances. Immediate infusions of working capital into your business that are taken against your future credit card sales.
- Peer-to-Peer Lending. Peer-to-peer lending, also known as social lending, enables individuals to obtain funding directly from other individuals, thereby eliminating the financial institution as the middleman.
- Lines of Credit. This is a preset borrowing limit available to your business that can be tapped into at any time.
Utilize Trusted Lenders
Whenever money is involved, sharks are swimming in the waters. It is important to utilize a funding agent that is viable, operating with integrity, and not promoting a scam. Fortunately, the vast majority are like that.
Be sure to evaluate the following:
- Does the funding agent have a physical address?
- How long have they been in business?
- Have they run afoul of the Better Business Bureau?
- Can they provide a list of satisfied customers?
Legitimate lenders know that their success hinges on maintaining a stellar reputation. These firms take steps to safeguard their own business and that of their customers.
Hedge Commercial Capital Can Help
Hedge Commercial Capital stands ready to help small businesses of all sorts through financial difficulties. Connect with us to find out more about their portfolio of funding solutions.