8 Non Obvious Cash Resources You Can Tap Into, Today, When You Can’t Get Approved For A Traditional Business Loan

Friends & family

Without even trying, it’s likely this was the first business funding alternative resource that first comes top of mind for you, right? This resource is comprised of people immediately accessible to you. Perhaps, you still hang out with these folks during social gatherings, get togethers, holidays, or other special closed circle events, right?
and if you’re fortunate enough to have a few of these folks in your corner while growing your business, lucky you.

Obviously, not every friend or family member is going to be a good financial resource for you to tap into as you grow or expand your business, but if any of the folks in this sphere of your influence can contribute to your business mission or purpose, you might not need bother with any one of the other resources listed.

Who knows?

Another cool consideration is typically, these folks are already in your corner. Usually, they won’t require you jump through as many hoops as a non close family or friend or some other formal business leander would.

No, family and friend money, typically, work on handshake deals. They just want a reasonable understanding of what you plan on doing with the funds. They want to know how you plan to grow operations, and maybe get some sort of time frame on when they can expect to get reimbursed, which is reasonable, right?

You might consider sweetening the pot for them by laying out how much interest you intend to give them, on top of what they initially lent you to begin with.

Nothing says thank you like paying back more than you owe, right?

While it may not be a requirement from family or friends, being clear on interest expectations is always a good thing to discuss.

If you don’t have access to friends and family funding resources, perhaps try one of the other next few ideas.

Peer to peer lending

P2P lending websites connect borrowers and lenders in a direct transaction, usually without the need for any other third party approval requirements.

Typically, both parties complete the transaction, directly, right through the platform itself which is very appealing because of it’s easy, straightforward and convenient process.

Although P2P lending has only been around since about 2005, it’s a funding source that’s grown considerably since then and the trend is still moving upward.

Want proof?

Simply do an online search for P2P lending companies. Beware, there are a ton of these companies out there.

So why might Peer to peer lending be a great alternative funding source for your business?

While it’s not true 100% of the time, usually the process has less restrictive requirements than what a bank might need from you were you try getting a loan from them.

Again, this is simply an alternative channel you might look into assuming you don’t want to go the traditional route.

P2P lending is only possible thanks to the internet and other high tech developments.

This means now, you no longer need a bank’s “ok” to access money to grow your business.  Now you have options.  You can see what private individual investors might have to offer you.

And, why not?

Your business is worth it.

Before going to a bank, see what funding options might be available for you from this resource category.

Crowdfunding

Crowdfunding is a great alternative source of cash for businesses because it diversifies the financial sources you borrow from, which reduces risks for everyone by spreading it out.

How?

Since each individual lender, typically, has a small amount invested (aka at risk), and each borrower, typically, is not beholden to one fickle lender, risk is spread for all parties involved.

The tricky thing about crowdfunding is it, usually, requires you meet minimum funding goals before you can make use of any of the funds.

What that means is, you may not get funded if you can’t get enough people willing to invest at the threshold level you’ve set and therefore is required to be raised for your situation.

Yes, it can be tricky, but still, worth noting and might be a viable and ideal alternative funding source for some businesses.

If this is not for you then how about the next one?

Venture Capital

Otherwise known as angel investors, these parties are, typically, interested in making money lending out their funds.

For these folks, profits and returns on their money is the only language they speak.

You have a startup? So what?

All they want to know is … what’s the upside, how much can they make back on their investments in you?

Oh, and in order to limit their downside, or minimize any kind of risk, they’ll probably want to tell you how to do things.

Are you ok with giving others the power to start calling the shots in your business?

After all, from their perspective, it’s their money you’re using, not yours.

They want to tell you how to use it, not lose it and if you want their money, they make this a mandate (so, you can’t refuse it).

If you’ve ever seen the show Shark Tank, then you’re more familiar than you might think with this type of lender.

How do they work?

Well, typically, they either want a big hunkin’ percentage of your business by way of ownership or they’re looking to get a promise back of some amount more than they put in, in exchange for helping you grow your business operations.

While it could be worth it…

Again, if you’ve seen Shark Tank, let’s just say, it’s a good idea to do your due diligence, make sure you fully understand what the investors want of you, what their expectations are and what that means for you.

If you’re not confident this is right for you, fortunately, there are some more alternatives.

Read on.

Grant Funding

Another alternative to business loans are Government grants.

Which government?

Federal, city, local… all or any of them.

The U.S. Government is one of the wealthiest untapped business resources in the world (Universe?).  The thing is figuring out how to access that money can be a pretty daunting task.

While we’re definitely aware there is money to be had here, unfortunately, you’ve got to be a pretty savvy, detective level, researcher with the patience of a parent dealing with a hangry, tired, scream-raging toddler to work this system.

Who knows how long it might take you?

While this is still a worthwhile resource, any and every business should learn how to tap into, for faster service, definitely refer to one of the other resources on this list for more ideas.

Microloans

While similar to the peer to peer lending category, there is a slight difference.

The difference is primarily intent AND the ideal target candidate.

Microloans are designed more so for the super small, super struggling financially, and usually deals with those in highly underdeveloped countries.

Usually, the scrappy and defiant small businesses this type of loan caters to lack access to sophisticated banking and related services due to the lack of system infrastructure in their local area and the high transaction costs associated with serving these types of clients.

Honestly, if you’re in the states, chances are you are not in the target market for this funding resource.

Definitely something one should consider making use of to pay it forward, later on, once they’ve gotten a handle on their own business situation.

Credit Cards

Credit cards should have probably been listed second, since it’s another top of mind resource most people think of when they think “I need money now,” regardless if it’s business related or not.

While this MIGHT be a resource you can tap into, there are some things you might want to consider.

For one, credit cards often come with some of the highest interest rate terms you’ll find from any loan resource available anywhere.

This is a better resource for those with not the best credit.  Still, though…

If you’ve got bad credit, you may not be eligible.  Even if you could figure a way to get approved, you could potentially be putting yourself further into the hole if the money you’re able to get doesn’t “pay off” for you soon enough.

This is one of those situations where even if you can, should you?

Other questions you might want to get some more concrete answers on are things like:

What are the terms of your credit?

How much is the interest gonna run me in total?

What’ll happen if I make late payments?

What happens if I default, how will this impact your credit rating and for how long?

While credit cards might seem like a “Hail Mary” save in the moment, they’re usefulness can come back and bite ya in the end if you don’t give them the proper consideration.

It’s for this reason that we’ve listed credit cards in the second to last resource because it offers a clear contrast to one other lending resource you might want to consider, first.

Alternative and asset based lending

So, what do you do if you don’t want to go the traditional bank loan route, but you still WANT outside money to help you grow your business?

Why not consider an asset based or alternative lender?

This is worth considering even if you can get the best credit card rates out there.

This is simply a resource you might not have even thought of.

For example…

How is your business revenue currently?  Is it a positive situation where if you just had more money, the cash flow would simply be greater than it is, right now (cash flood?)?

How about equipment, do you have any you might be able to use as collateral so you can expand your operations?

What about any other assets, like land, property or other holdings you can put up as potential collateral?

And, while we’re at it, isn’t it nice knowing you don’t have to worry about putting your credit score in jeopardy to begin with?

Maybe you’re reestablishing your credit?

Alternative funding might be a ninja knowledge way to get some extra funds without touching your credit.

Here at Credit Hub we pride ourselves on being the only creative funding resource you’ll ever need, no matter your credit situation.

To get a better sense of how it can work for you, or to get your questions answered about your specific situation wants or needs, why not use the link provided at the end of this article to get in touch, today?

Who is Credit Hub Ideally Suited For?

Credit Hub is a unique platform that not only offers access to business funding approvals without  credit checks, but we also specialize in obscure insights that may help improve any company’s fundability.  We recognize each situation is unique and so we treat each instance on a case by case basis.

In general, our offerings are perfect for those business owners that meet any of the following criteria.  (Please note: even if not a perfect match, you should still get in touch with us if any of these criteria apply to your situation):

Have a “decent” credit score (The number is not specific so much as what it’s based on)
Have a decent credit history (how seasoned is your borrowing history?)
Want help reestablishing credit (We’ve got some obscure resources others may not know about)
You might have collateral you could use to help secure funding
Even if you have the slightest doubt you don’t qualify, why not check with us? (We’ve helped plenty people get money who didn’t initially believe it was possible)
Your business has “decent” revenue (but just wants help expanding)
Another area where it’s better to get in touch with us, even if you’re not sure you qualify.
We’re pretty creative, our solutions just might surprise you

Which of these resources resonate with you most?

If you’re left with questions, and want answers about getting funding to help you grow your business, or if you’re simply curious and would like to find out more, use the contact details you find at the end of this article.

Why not get in touch with us, today?