Finding New Ways To Fund Your Business
There’s no doubt in anyone’s mind that today is a tough time to do business. It isn’t just the cost of establishing your business, but the problems with trying to obtain credit in a tight credit market especially when business has slowed down. Just when you need the funds, that’s when you will have trouble being approved. It’s time to get creative and find other business loan alternatives that can free up cash when you need it most.
Peer-to-Peer Lending
These types of sites allow many different individuals to help fund a loan. Each individual pledges a portion of the total amount that you wish to borrow until the entire loan amount is funded. Then, the loan is released and you must pay back the loan according to the terms it was funded. You will have your credit reviewed on site and you will have to make a case as to why these investors should fund your loan and not someone else’s. However, you can still get funds this way that beat bank rates, even when your credit may not be spotless. Take a look at prosper.com for an example of a peer-to-peer lending site.
Merchant Loans
These types of loans are available from online merchant lenders. They do not require a credit check or collateral. Instead, your business history from credit card receivables will determine how much you can borrow and what repayment terms you get. It’s an excellent option for businesses that don’t have much in the way of assets, but can show a steady history of income, even if it cycles from high to low over time. The merchant loan will actually help to steady out cash flow because repayment is not done on set dates, but as a normal part of doing business. Payment goes to the merchant lender as a percentage of each credit card transaction. Thus, if business is slow, less money is used to repay the loan, but when business is good more can be sent without hurting cash flow or your business.
April 11th, 2010 at 6:27 pm
Да уж, спасибо…
Just when you need the funds, that’s when you will have trouble […….
April 21st, 2010 at 3:59 am
Я думаю, что Вы не правы. Давайте обсудим. Пишите мне в PM….
Just when you need the funds, that’s when you will have trouble […….