The Benefits of Alternative Business Funding

Business Funding - 3 Min Read

Business owners often seek alternative business funding to support their venture at some point as it is often more difficult to obtain business capital loans from traditional funding. No matter how long you’ve been in business, at some point you’ll likely need working capital to sustain and grow your business.

Many times your business can plan for the funding you’ll need, but other times you need money right away for unexpected expenses. Most often banks simply aren’t willing to provide a capital loan. If you’ve been turned down or delayed by traditional banks, alternative business funding may be the way to go. But, before you take the plunge, be sure to review all options and the positives and negatives of all.

Below, we’ll explore the downsides of the growing trend of crowdfunding and why it may make sense to instead consider Mulligan Funding for your business needs. 

Alternative Funding Through Crowdfunding: The Downsides

Crowdfunding is an alternative many startups are investigating. Crowdfunding has numerous advantages, but before you jump on this route, here are some reasons why you might not go with crowdfunding

  • Ideas can be stolen with public display of your business ideas.
  • Requires marketing, strategy and PR to be successful.
  • Tight deadlines of campaign and product launches; Unlike crowdfunding, traditional investors may let you stretch your deadlines because they understand business needs.
  • Public display of failure; meaning if your funding isn’t successful, future investors will know about this and it may count against you in the future.
  • Excessive regulations, many that could directly impact directors and senior management, who could face lawsuits for violations of the The JOBS Act, passed by congress in 2012.
  • If you don’t structure your crowdfunding campaign carefully, you could end up giving out more equity than you intended.
  • With crowdfunding, the opportunity to guide the terms, valuation and outcome of the funding is minimal or non-existent.  When dealing directly with venture capital, you are provided with terms sheet which can often be negotiated, allowing you to drive the terms of the funding.

Alternative Funding Through Mulligan Funding: Less Paperwork and Quicker Funding

Mulligan Funding offers a simple one-page application with an approval process that usually takes only a few hours. Once approved, you can receive the alternative funding as soon as a couple of business days, compared to the traditional application process banks, which can take several weeks or months to approve any business capital loans.

Because of the difficulties dealing with traditional lenders, business owners often dip into their own assets to fund their expansion. Sadly, many times these “loans” never get paid back, and the owner ends up taking capital that should have been saved for their retirement or personal use. We can understand the frustration and are pleased to offer alternative business funding to help.

Collateral is Not Needed

Collateral likely won’t be needed for crowdfunding, but it is needed for certain types of business funding. Who wants the pressure of putting their home or other valuable items up for collateral when applying for business capital loans? No business owner should have to live with that stress. Alternative business funding through Mulligan Funding requires no collateral.

Perfect Credit Not Required

Regardless of their success, many business owners have less than perfect credit. With alternative business funding through Mulligan Funding, you don’t have to have perfect credit to fund your business. At Mulligan Funding, we will provide access to the working capital you need at terms that are reasonable for both parties. Trying to obtain business capital loans through a bank with imperfect credit will likely result in a denied loan application. This is one reason why alternative business loans are beneficial. 

Shorter Payback Period Reduces Stress on Your Business

Sometimes, business owners just need alternative short-term funding to get out of a pinch or to take advantage of an opportunity. Mulligan Funding appreciates that when these opportunities come up, they need to be taken advantage of quickly in most cases. Unlike some business funding solutions, alternative business funding through Mulligan Funding can accommodate. 

At Mulligan Funding, we’ve helped business owners obtain business capital loans since 2008. The advantages of alternative business funding are easy to see for yourself, but we are always available to speak with you to determine the right financial situation for your business.. Be sure to contact us for your funding needs, whether it’s additional cash-flow, remodeling, inventory, advertising, expansion or more!

Call Mulligan Funding at 855-326-3564 to discuss your alternative financing options today!

The information shared is intended to be used for informational purposes only and you should independently research and verify.

Note: Prior to January 23, 2020, Mulligan Funding operated solely as a direct lender, originating all of its own loans and Merchant Cash Advance contracts. From that date onwards, the majority of funding offered by Mulligan Funding will be by Loans originated by FinWise Bank, a Utah-chartered Bank, pursuant to a Loan Program conducted jointly by Mulligan Funding and FinWise Bank.