More Alternatives to Small Business Loans

We’ve heard a lot about small business loan alternatives over the past couple of years, as bank lending has taken a nosedive. Some of these alternatives include, venture capital, peer-to-peer lending and government grants. Nevertheless, the Wall Street Journal recently featured an article about small business owners who got very creative to get the business funding they needed to launch, expand and/or improve their businesses. Below are some new and creative ways in which small business owners have evaded a need for small business loans and secured the funds they needed for their businesses.

Boot Camp

Many venture capital firms are conducting boot camp like programs, where they provide entrepreneurs with mentoring and a chance to receive venture capital. These programs usually last for stints of three months.

Reality TV

One of the newest reality shows, Shark Tank, gathers investors who have and have had successful business ventures in the past. Entrepreneurs then get a chance to present their businesses to the "sharks" in the hopes that one or more will choose to invest in their businesses and possibly offer advice, guidance and expertise.

Merchant Cash Advance

With the merchant cash advance, small business owners can get up to $500,000 for their businesses. Unlike bank loans, there are no restrictions on how merchant cash advances can be used and the repayments are flexible, as they are automatically deducted from a business’s daily credit card sales. It usually takes six to eight months for a merchant cash advance to be repaid, and borrowers can choose to renew their funds every three to four months.

Qualified merchants have owned their businesses for at least six months and have no unresolved bankruptcies. They also process a minimum of $3,500 in credit card sales each month and have at least one year remaining on their business leases.

Get a free online quote today and you could have your merchant cash advance in your account by next week!
Small Business Loans Alternative