According to one study by JP Morgan, companies that have less than 500 employees only have enough cash reserve to sustain them for one month.
4 Unusual Ways to Borrow Money for Your Business
If you are in a situation where you need to secure more money for your business, you might be wondering what the best ways to borrow money are.
Thankfully, we have all the tips to help you borrow for your business, so keep reading.
GoFundMe is one of the most popular sites for crowdsource funding, but many businesses also use Kickstarter as well.
To use these, all you have to do is provide information about your business and what you’re trying to fund. You can also set a goal to let people know just how much you need.
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Some businesses are better suited for this than others. For example, many people on Kickstarter are using it for their creative projects or businesses. Indiegogo is mostly used for technology startups.
2. Get a Small Business Loan
While banks might not be as willing to give out loans and risk their own money, companies that specialize in financing solutions have been giving out all kinds of loans and financial advice to support businesses.
They’re open to any small business, but you’ll need to meet their qualifications in order to apply.
After you’ve applied to a bank and been turned down, you already meet one of their qualifications. You also have to be classified as a small business for your industry.
If you meet those requirements, you can apply for a commercial loan from a financial company, because the administration won’t give a loan to you directly.
3. Use Credit Cards
You may also want to put expenses on your credit card, which you can use as a form of a loan. They’re great for smaller costs, like anything under $25,000.
If you don’t have enough in your credit limit, you could also get a better understanding of how cash advances work on your credit card. Keep in mind though that if you take out money on a merchant cash advance, you start accruing interest on it immediately without a grace period.
4. Go to a Private Lender
To compete with the banks, many private credit firms started lending out money as well.
If you need a larger amount than you can get on a credit card, you might want to try contacting one of them.
However, there are some drawbacks, like the borrowing costs being more than a bank’s. The private lenders sometimes also charge penalties on payments that you try to payback too early.
Discover More Ways to Borrow Money for Your Small Business
These are only a few ways to borrow money for your small business, but there are many more things you can try!
We know that running a business can be overwhelming and stressful, but we’re here to help you out.
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