Funding A Business In A Down Economy

In the process of growing your business, you will eventually find the need to secure additional funding. Perhaps you need to buy equipment to expand your business, or you need a larger building, or maybe you need to hire employees to help process orders. You will likely find yourself in a position at some point to have to find outside funding to help make your dream a reality.

In today's economy, more and more business owners are finding that banks are less than willing to lend out money, even if you have excellent credit. What's an enterprising business owner to do then?

Creative funding is a requirement for businesses to survive and thrive and there are lots of alternatives at your fingertips to help!

The SBA 7(a) Loan Guarantee Program is the governments main small business financing tool. It helps secure loans for small businesses that are unable to find funding or reasonable credit terms via conventional lending channels and will guarantee up to $1 million.

Woman Owned was founded in 1997 by Christina Blenk as a resource for other women business owners online. They provide online business information and networking assistance as well as a number of resources for setting up / running / growing businesses.

If you plan to borrow from family or friends, check out Virgin Money (formerly Circle Lending) . This firm provides all of the loan administration, record keeping, payment processing, and structural support to set up a formal lending and payback schedule for your informal loan. They "provide a simple way to structure a social loan to help keep friendships exactly as they should be—friendly."

The National Business Incubation Association offers information on incubators and can help you locate one in your area. In the "Resource Center" select your state from the drop down menu.  

The federal government created SBIR grants to encourage small business to explore their technological potential.

Prosper.com is the world's largest peer-to-peer lending marketplace allows people to invest in each other in a way that is financially and socially rewarding. On Prosper, people list and bid on loans using an online auction platform. Borrowers list loan requests between $1,000 and $25,000 and set the maximum rate they are willing to pay. Prosper was co-founded by Chris Larsen, co-founder of E-LOAN. 

Kickstarter.com is a funding platform for creative projects. It is a great way for artists, filmmakers, musicians, designers, writers, illustrators, explorers, curators, promoters, performers, and others to bring their projects and ambitions to life. Project creators inspire people to open their wallets by offering products, benefits, and fun experiences.

If your business start-up is one that has equipment needs, companies like Direct Capital  have been expanding their financial capacity for a while now, and may be able to provide some leasing options for your business. Leasing your equipment can be a good way to free up some of your up-front loan requirements.

Have you encountered other creative lending sources? We'd love for you to share them in the comments section below.

Allison B. Kontur

www.BathBodySupply.com