Published By Credit Suite at November 15th, 2014
What is alternative financing? And what does it mean to you? Good questions!
There are several forms of business financing available for small business owners. There is a massive abundance of business credit that is also available for small businesses. This money just isn’t available at most conventional banks. Most business owners go to their bank when they need money. But banks mostly deal with SBA loans which require two years in tax returns to qualify. SBA loans only account for less than 2% of all business funding in the USA, Department of Revenue.
Due to tax return requirements, no business can even apply unless they have been in business for two to three years. Plus, to get approval, everything on the personal and business side must be perfect. Some banks might give you a credit card, but the limit is 1/5 of what you could get through the right sources.
Big banks are just not the best source of money for a new business. Still, most business owners only know to go to their bank when they need money. About 89% of applications taken at those banks are then turned down. So people then believe there is no solution. But there are plenty of awesome ways to get money for your business.
Alternative financing is funding for your business which is less common. Many people do not know about it. But it is out there, it is legit, and you can get it for your business. In particular, alternative financing is perfect for startup ventures.
Take a look at some of the alternative business financing that is available for you today, even if you are a startup business:
With Securities Financing, you can get up to 90% of stock value with rates of 3%.
With 401(k) Financing, you can get up to 100% of value of 401K at rates of 5% or less.
With Inventory Financing, you can get 50% of inventory value with rates less than 5%.
With Equipment Sale-Leaseback, you can get up to 50% of equipment value, rates of 5-20%.
With Commercial Real Estate financing, you can get up to 65% cash-out, rates of 5% and up, good credit needed.
So this one is for insurance agents only. With Book of Business Financing, you can get up to 120% of surrender value, 3-10 year loan, rates of 5% or higher.
With Sign/ Wrap Financing, you can get money to purchase wraps and signs, 5-15% rates.
And with Equipment Financing, you can get up to 100% financing, less than two months of payments, rates of 5%+.
So with Rehab Financing, you can get 100% of money to buy and rehab property, after-repair value must be under 65%, rates of 8%+.
So with Unsecured Financing, your approval amounts from $10,000 to $150,000. There is no consumer reporting. But there is some business reporting. You will need to have excellent personal credit with open revolving credit. And you can get approved for five cards giving you five times as much as a bank will issue. You will often pay 0 to 25% APR. And it can be 0% for 6 to 18 months. Note: you will pay a 12% success fee. And this credit will report to personal reporting agencies.
Open your mind and expand your horizons! Alternative financing is a great way to get business funding when the big banks say no.