7 Non Traditional Ways To Finance Your Business

7 Non Traditional WaysTo finance Your business

#1. P2P LOANSFor Business Purposes

Enable you to get an instant interest rate quote on a three or five year loan, fill out a loan application online, and find investors willing to lend you money. For business owners that need $35,000 or less in funding, a P2P loan can be a great option.

Peer To Peer (P2P) Loan Providers

Approval Requirements: Strong personal credit score and history. Those with scores of 660 or below need not apply. !

•Pros: Provides funds from one to five years at interest rates typically around 15%.

•Cons: Failure to pay will hurt one’s personal credit score.

Our Recommended P2P Loan Provider Is Prosper.

#2. Alternate short term loans

To small businesses, a number of companies have filled the gap, providing up to $250,000 in financing to small businesses for working capital.

With banks lending less and less

Approval: Generally, lenders are looking for profitable companies that have been in business over 2 years. !Pros:Quick approval (1-2 days) for 6 to 24 month loans. Helps build a firm’s credit. !Cons:Interest rates of 50% or more.

Our Recommended Alternate

Short Term Loan Provider is OnDeck.

#3. Merchant Cash Advances

Selling future credit and debit card sales is a popular method of accessing working capital.

For Retail Businesses

Approval Requirements: Most businesses that apply for merchant cash advances are approved. Businesses losing money and business owners with low credit scores can still be approved. !Pros: Quick approval process and no personal guarantee of repayment if the business fails. !Cons: Very high cost of money. Effective interest rates of 80% or more.

Our Recommended Merchant Cash Advance Provider is Can Capital

#4. Invoice Factoring

Approval: Depends on a variety of factors, including the financial history of a company and the financial history of their clients. !Pros: Quick approval for short-term financing of up to 90 days. !Cons: With most factors, you will need to have clients send payments to the factor. This is not the case with FundBox, our recommended provider.

Our Recommended

Invoice Factoring Provider Is FundBox

#5. Rollover for business Startups (robs)

Approval Requirements: Must set-up a C Corp and specific type of retirement plan. !Pros: No requirement to pay back funds or debt payments to make. !Cons: Expensive to set up ($5,000). Business owner is risking funds from retirement savings.

Our Recommended Rollover

For Business Startups (ROBS) Is Guidant Financial

#6. Receivable cash advance (paypal, ebay)

Or does business through Ebay, you can receive a lump sum cash advance through selling future payments.

If your business receives payment via Paypal

Approval Requirements: The key is a consistent historical track record of sales / incoming revenue. !Pros: Quick approval process and no personal guarantee of repayment if the business fails. !Cons: High cost of money. Effective interest rates of 50% or more.

Our Recommended

Receivable Cash Advance Provider Is Kabbage

#7 Sba guaranteed 7a loan

However our recommended provider SmartBiz has revolutionized the application process. You can now have your money in as little as 1 week.

SBA Loans are a traditional

form of financing

Approval Requirements: Generally, need a high personal credit score and two years history as a successful company. !Pros: Provides funds for up to 10 years at interest rates as low as 6% !Cons: With conventional banks, approvals can take weeks and sometimes months.

Our Recommended SBA Guaranteed

7A Loan Provider Is SmartBiz

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