At some point most business owners are forced to look for alternative business funding sources to fund their business. Many, end up using their personal assets (credit cards, savings, investments, home equity loans, etc.) to provide working capital for their business. If you’ve been in business for any length of time, you can probably relate!
Have you ever found yourself in a situation where having access to additional capital quickly for your business would be helpful, but your bank was unwilling to help you? Working capital loans don’t have to be hard to get.
Let’s examine the difference between traditional and alternative business funding options.
Most of the business owners we speak with, share their frustration with both the process and results of obtaining traditional financing. Many of them have completely given up on bank financing and are using their own assets to fund their business.
When does a bank loan make sense for your business?
When you have excellent credit, valuable collateral, qualify for all bank guidelines, and have weeks or months to wait for an approval, banks offer the cheapest money available.
When does alternative business funding make sense?
When you have the ability to grow or strengthen your business with an infusion of capital. And when you need access to that capital quickly and easily, or when not having access to financing can cripple or hold your business back.
Here are some examples of when not having capital can cost you BIG money.
- Losing an opportunity to purchase inventory or equipment at a discounted rate.
- Not being able to bid on a big project or customer because you don’t have the tools or staff to effectively fulfill delivery of your products or services.
- Inadequate cash-flow (receivables vs payables) during slow periods can cause you to lose good employees, be put on C.O.D. with venders and damage your reputation in the business community.
- Not being able to expand, or purchase equipment to meet a greater market demand than you can currently fill.
- Not having the capital to invest in lead generation, advertising and marketing campaigns.
- Lack of capital for needed repairs or renovations.
Obviously, this isn’t an exhaustive list but it covers the most common needs and areas where not having enough capital can slow the growth of, or damage your business.
Call Mulligan Funding at 855-326-3564 to discuss your financing options today!