In the business market it can be hard to find finance, even for large businesses. For SMEs, this problem is exacerbated, as your business might not have the collateral or experience to appeal to banks or large lenders, and as such it can be hard to find the funding options to drive your business to achieve its goals.
As such, for SMEs it can be hard to find the funding options that suits you, and many small and medium sized businesses crave new options for business finance. With this in mind, here are three alternative options to going to the bank for SMEs looking to borrow money to finance their growth and future success.
Crowdfunding
The most popular crowdfunding platform is Kickstarter, but there are now a variety of sites out there offering businesses the chance to ask thousands of people to help them to achieve their funding goals. You need to create a great promotional plan, but with a little hard work you can quickly and easily achieve your targets and get the money your business needs. Set a realistic target and be honest and open to draw in investors from across the platform. You can decide what you want to offer in return for investment, so think hard about what you’re willing to offer and how you will convince investors that it’s worth their money.
Online Platforms
Use an online platform like Become to find the best finance option for your business and optimise your chances of having your funding application accepted. These solutions will connect you to the lenders that are keen to invest in your market so that you have the best chance of getting the money you need, as well as offering help and advice that you can take with you long after you stop using the platform.
Angel Investors
Individuals who invest in businesses and offer them money, as well as in some cases their time and support, in return for shares, equity or convertible debt are known as Angel Investors. They offer a unique chance for businesses to find someone who has the experience in their sector to help them to achieve their dreams. Every Angel Investor is different, and as such you’ll be able to build a relationship that will work for you and drive your business towards the success you’re striving for.
When searching for your perfect source of business funding, it’s important that you do your research and find the perfect option to suit your organisation before you commit. It may be a long and arduous process, but you need to make sure you find the exact option that meets your needs so that you don’t end up paying too much money and working with an unsupportive lender. Whatever solution you end up using, make sure that you know the exact terms of any arrangement you make so that you are fully prepared to repay the loan or provide the reward that you’ve promised your investors.
