Alternative Funding

1. Tips For Alternative Funding Sources If you are looking at financing options for your small business but do not have access to bank loans, there are several alternative funding options you could look at.Alternative Funding Peer-to-peer lending networks are a great way to seek loans from individuals instead of traditional financial institutions. Many websites allow you to do this such as LendingClub.com or Prosper.com. All you need to do is to register on these sites and request a specific amount at a particular rate of interest. Lenders will get in touch with you and may fund either the full amount or a part of it. You can then replay the loan over a pre-determined time along with the interest. Your ability to get funding from such a site will largely depend on your credit ratings. The most common way to fund a small business is to ask your friends or family for a loan. Although you may be reluctant to borrow from those close to you for fear of jeopardizing relationships, this is a good option if you are meticulous about returning the amount.Business Funding Some people use money from their retirement fund although you may consider this a risky option. However many entrepreneurs who have resorted to this method have gone on to make a success of their business. However, you should be completely comfortable with the idea before going ahead with it. If you are ready to explore this option, you should be aware that you can invest your existing IRA or 401(k) money for purchasing a business without having to pay any penalties. Another popular funding option you can look at is seller financing. This means when you buy goods, you pay a portion of the price to the seller and give them a promissory note for the remainder. This remaining amount can then be repaid by

2. you over some time along with interest. Typically the repayment period ranges from three to five years. Although it is difficult for small businesses to get loans from banks, nowadays there have been changes in bank policies and they are far more willing to look at small business lending. There are several exciting alternative funding sources you can avail of in today's market. So this so many varied options that you can explore, don't let a shortage of finance keep you from setting up your dream business. Allan enjoys writing about a variety of subjects. Other than the above topic, he also likes to set up sites on different topics.Alternative Funding Group