Alternatives for Financing if your Small Business Can't get a Bank ...

Small businesses have been hurt during the Great Recession and are now being shut out of getting a?bank loan. They have lost customers and now have reduced sales. They have had to lay off employees because there isn?t enough for them to do or enough to pay them. They have lost valuable supply lines. Most of all, they have lost their?creditworthiness?or so it seems and can?t get?business credit?or business loans. Banks aren?t willing to do business with small businesses any more, or at least not to the extent they used to be.

Before the recession, just about every thriving small business had an ongoing relationship with a bank that provided them with at least a line of credit. The recession saw these lines of credit dry up. The small businesses can?t revive their lines of credit or even get a business loan with a bank because they have lost their customer base and their sales can?t support their loan requests. In addition, their banks have strengthened their lending guidelines.

What?s a small business to do?

Small business are having to utilize non-traditional business credit and business loans. Though these sources of credit may not be perfect for every business, they are at least options to keep small businesses going through these rough economic times. Here are some options for small business credit and business loans if you can?t qualify for a bank line of credit or bank loan. Check them out. Sometimes, you may have to put two or three of these methods together to put the financing you need into place.

?

?

Here?s the way it works. When a company gets a merchant cash advance, the deal is the purchase and sale of future credit card income. No regular fixed payments are required by the company. The lender collects a set percentage of the company?s daily credit card sales.

?

Purchase order financing?is similar to the old practice of factoring, except they take it one step further. They guarantee the order of a buyer of the company?s products. They pay for the product to be manufactured, then take their cut and let the company have the rest of the proceeds.

?

Sell your accounts receivables to raise money for working capital needs. While the interest rates are almost always higher than for bank loans, at least you can get this loan. Check out?The Receivables Exchange, an electronic marketplace for trading accounts receivables at auction.

?

?

The good news is that it is obvious that small businesses do have options to obtain money so they can continue to operate. They do not have to depend solely on traditional bank loans. Alternative means of debt financing for their operations have surfaced to the mainstream.

Source: http://restaurantfinancecompany.com/alternatives-financing-small-business-bank-loan/?utm_source=rss&utm_medium=rss&utm_campaign=alternatives-financing-small-business-bank-loan

anne hathaway Castel Gandolfo Silver Linings Playbook daniel day lewis Life of Pi Christoph Waltz Quvenzhané Wallis