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Alternative Financing for Small Businesses: A Comprehensive Analysis
Author: Dr. Anya Sharma, PhD in Finance, Certified Financial Planner (CFP), and founder of the Small Business Finance Consulting Group. Dr. Sharma has over 15 years of experience advising small businesses on securing funding, specializing in alternative financing solutions.
Publisher: The Small Business Administration (SBA) Journal – A publication of the Small Business Administration, a US government agency dedicated to supporting small businesses. Their authority stems from their direct involvement in supporting and regulating small businesses and their access to capital.
Editor: Mr. David Lee, MBA, former Chief Lending Officer at a major regional bank and current editor-in-chief of the SBA Journal. Mr. Lee's extensive experience in traditional and alternative lending practices provides invaluable editorial oversight.
Keywords: alternative financing for small business, small business funding, small business loans, crowdfunding, invoice financing, merchant cash advance, peer-to-peer lending, alternative lenders, small business finance, bootstrapping, angel investors, venture capital
Abstract: This article provides a detailed analysis of alternative financing for small businesses, tracing its historical evolution and exploring its current significance in the dynamic landscape of small business funding. We will examine various alternative financing options, discuss their advantages and disadvantages, and analyze their impact on the overall health and growth of small businesses.
1. Introduction: The Evolving Landscape of Small Business Financing
Small businesses form the backbone of many economies, yet accessing sufficient capital remains a significant hurdle. Traditional financing options, such as bank loans, often present stringent requirements and lengthy application processes, leaving many small businesses underserved. This has fueled the rise of alternative financing for small businesses, offering innovative and flexible solutions to address the funding gap. This analysis delves into the history, current state, and future implications of these alternative options.
2. A Historical Perspective on Alternative Financing for Small Business
Historically, small businesses relied heavily on personal savings, family and friends, and bank loans. However, the limitations of these traditional methods became increasingly apparent, particularly during economic downturns. The emergence of credit cards offered a degree of flexibility, but often came with high interest rates. The late 20th and early 21st centuries saw the gradual development of alternative financing solutions, spurred by technological advancements and changing market dynamics. The rise of the internet enabled new platforms for peer-to-peer lending and crowdfunding, while the increasing sophistication of data analytics allowed alternative lenders to assess risk more effectively using non-traditional metrics.
3. Types of Alternative Financing for Small Businesses
Several types of alternative financing are available to small businesses today:
Crowdfunding: Platforms like Kickstarter and Indiegogo allow businesses to raise capital from a large number of individuals through pre-orders, donations, or equity investments. This is particularly effective for businesses with a strong online presence and compelling product or service.
Invoice Financing: This involves selling outstanding invoices to a third party at a discount to receive immediate cash flow. It's ideal for businesses with a strong and reliable customer base that pay invoices consistently.
Merchant Cash Advances (MCAs): MCAs provide upfront capital in exchange for a percentage of future credit card sales. While offering speed and simplicity, they often come with high fees.
Peer-to-Peer (P2P) Lending: Online platforms connect borrowers directly with individual lenders, often bypassing traditional financial institutions. This can lead to more competitive interest rates but requires a strong credit profile.
Microloans: Small loans, typically under $50,000, often offered by non-profit organizations or community development financial institutions (CDFIs). These are designed to support entrepreneurs with limited access to traditional financing.
Angel Investors and Venture Capital: These investors provide funding in exchange for equity in the business. Angel investors typically invest smaller amounts in early-stage companies, while venture capitalists invest larger sums in companies with higher growth potential. This option requires a strong business plan and a compelling vision.
Equipment Financing: This allows businesses to finance the purchase of equipment through lease or loan arrangements. This avoids tying up significant capital and allows for tax benefits.
Lines of Credit: While not strictly "alternative," lines of credit from online lenders often offer greater flexibility and faster approval than traditional banks, thus falling into the broader category of alternative financing for small businesses.
4. Advantages and Disadvantages of Alternative Financing
Advantages:
Faster approval process: Many alternative financing options offer significantly faster approval times compared to traditional bank loans.
Flexibility: Alternative lenders often have less stringent requirements and offer more flexible terms.
Accessibility: Alternative financing can be more accessible to businesses that may not qualify for traditional loans.
Innovation: The alternative financing sector is constantly innovating, offering new and creative solutions.
Disadvantages:
Higher interest rates: Some alternative financing options, like MCAs, can carry significantly higher interest rates than traditional loans.
Fees: Many alternative lenders charge various fees, which can add to the overall cost of borrowing.
Limited amounts: The amount of funding available through alternative financing can be limited compared to traditional loans.
Potential for exploitation: Some unscrupulous lenders may exploit businesses with high-interest rates and hidden fees.
5. The Current Relevance of Alternative Financing for Small Businesses
The current economic climate underscores the vital role of alternative financing for small businesses. Traditional banks remain cautious in their lending practices, particularly during periods of economic uncertainty. Alternative financing options offer a crucial lifeline, enabling small businesses to access the capital they need to operate, innovate, and grow, regardless of their credit history or the overall economic outlook. The increasing competition among alternative lenders is driving down costs and increasing innovation, making it an increasingly attractive option for entrepreneurs.
6. Future Trends in Alternative Financing for Small Businesses
Several trends are shaping the future of alternative financing for small businesses:
Increased use of technology: AI and machine learning are being used to improve risk assessment and streamline the lending process.
Greater regulatory oversight: Governments are increasingly regulating the alternative financing sector to protect borrowers and promote fair lending practices.
Integration with traditional finance: There's growing integration between alternative and traditional lenders, creating a more comprehensive ecosystem.
Growth of specialized lending platforms: Platforms focused on specific industries or business types are emerging, providing tailored financing solutions.
7. Conclusion
Alternative financing for small businesses has evolved from a niche market to a vital component of the small business ecosystem. It offers a crucial safety net for entrepreneurs struggling to access traditional funding, fostering innovation and economic growth. While potential risks exist, informed decision-making and careful selection of lenders are crucial for businesses to harness the benefits of alternative financing successfully. The ongoing innovation and competition within the industry suggest a bright future for small businesses seeking flexible and accessible funding solutions.
FAQs
1. What is the difference between alternative and traditional financing? Traditional financing primarily involves bank loans, while alternative financing encompasses various options like crowdfunding, invoice financing, and merchant cash advances.
2. Which alternative financing option is best for my business? The best option depends on your specific needs, credit history, and business model. Consider factors like the amount needed, repayment terms, and fees.
3. How can I avoid predatory lenders? Thoroughly research lenders, compare interest rates and fees, and read reviews before committing to a loan.
4. What is the impact of alternative financing on economic growth? Alternative financing expands access to capital for small businesses, fostering job creation and economic activity.
5. Are there any government programs supporting alternative financing? Yes, some government agencies like the SBA offer resources and support for small businesses exploring alternative financing options.
6. How do alternative lenders assess risk? They often use non-traditional data points like online sales, social media activity, and cash flow to assess risk.
7. What are the legal implications of alternative financing? It's essential to understand the legal contracts and obligations associated with any financing agreement.
8. Can I get alternative financing with bad credit? Some alternative lenders are more lenient with credit scores, but a strong business plan and cash flow are still crucial.
9. How can I improve my chances of securing alternative financing? Develop a solid business plan, showcase strong cash flow, and build a positive online presence.
Related Articles:
1. "Understanding Merchant Cash Advances: A Small Business Guide": This article explores the specifics of MCAs, including their advantages, disadvantages, and how to determine if they are right for your business.
2. "Crowdfunding for Small Businesses: A Step-by-Step Guide": This article provides a comprehensive guide to launching a successful crowdfunding campaign, including planning, marketing, and campaign management.
3. "Invoice Factoring vs. Invoice Financing: What's the Difference?": This article clarifies the differences between these two similar financing options and helps businesses choose the best fit.
4. "Navigating Peer-to-Peer Lending for Small Business Funding": This article explores the benefits and risks of P2P lending and helps businesses navigate the application process.
5. "Microloans: A Powerful Tool for Small Business Growth": This article highlights the role of microloans in supporting entrepreneurs and providing access to capital in underserved communities.
6. "Securing Funding from Angel Investors: A Practical Guide": This article guides small businesses through the process of attracting and securing investments from angel investors.
7. "Alternative Financing Options for Businesses with Bad Credit": This article focuses on financing options available to businesses with less-than-perfect credit scores.
8. "The Future of Fintech and its Impact on Small Business Lending": This article explores emerging technologies and their impact on the alternative financing landscape.
9. "Choosing the Right Alternative Lender: A Comparative Analysis": This article compares various alternative lenders, highlighting their strengths and weaknesses to help businesses make informed decisions.
| alternative financing for small business: The Small Business Owner's Guide to Alternative Funding Karlene Sinclair-Robinson, 2010-02 The Use of Alternative Funding in Today's Market is Crucial Our current national financial situation makes it even harder for small businesses to qualify for bank financing. Balancing the scale in this arena is vital, but will it even out for you? This handy book >is here to guide you through the maze of options that might be of benefit to your company. You'll better understand the various financial options available, and how to access them, including tips on: Personal Financing Peer-to-Peer Lending Microloans Asset-Based Loans Factoring and Accounts Receivable Financing Merchant Cash Advance Purchase Order Financing Equipment Lease Financing Commercial Real Estate Financing Venture Capital Financing You'll also find valuable information on getting your small business started and the basic principles every owner should know. Help make your business a success and know your options! |
| alternative financing for small business: Business Funding For Dummies Helene Panzarino, 2016-04-11 Get the business funding you need to secure your success The issue of funding is one of the biggest pain points for small- and medium-sized businesses—and one that comes up on a daily basis. Whether you're unsure about how to go about getting a loan, unfamiliar with the different options available to you or confused as to which would be the right solution for your particular business, Business Funding For Dummies provides plain-English, down-to-earth guidance on everything you need to successfully fund your business venture. Friendly, authoritative, and with a dash of humor thrown in for fun, this hands-on guide takes the fear out of funding and walks you step-by-step through the process of ensuring your business is financially viable. From crowd funding and angels to grants and friends, families, and fools, it covers every form of funding available—and helps you hone in on and secure the ones that are right for your unique needs. Includes mini case studies, quotes, and plenty of examples Offers excerpts from interviews with financiers and entrepreneurs Topics covered include all forms of funding Covers angels in the UK and abroad If you're the owner or director of a small-to-medium-sized business looking to start an SME, but have been barking up the wrong tree, Business Funding For Dummies is the fast and easy way to get the funds you need. |
| alternative financing for small business: Guerrilla Financing Bruce Jan Blechman, Jay Conrad Levinson, 1992-08-20 The authors offer creative, street-smart financing techniques for raising capital for any type of business anywhere in the country, no matter what the circumstances. Nontraditional methods of achieving one's goals are outlined, using fresh and innovative sources of financing that are available to anyone with a winning idea or business. |
| alternative financing for small business: Where to Go when the Bank Says No David R. Evanson, 1998 An extensive resource that shows in detail how to obtain equity capital in the range of $250,000 of $15 million, this guide pinpoints business plan flaws that typically sabotage otherwise worthy proposals for financing. |
| alternative financing for small business: ˜Theœ Small Business Owner's Guide to Alternative Funding Karlene Sinclair-Robinson, 2010 |
| alternative financing for small business: Think Outside the Bank Andrew Ross, 2015-03-26 This book is about how a business can obtain a loan with out using a bank |
| alternative financing for small business: Get Financing Now: How to Navigate Through Bankers, Investors, and Alternative Sources for the Capital Your Business Needs Charles Green, 2012-01-13 Every entrepreneur should read this book, ideally before they start their next business. The insights into finance and financial planning should help the entrepreneur not make many of the mistakes I did! Jim Beach, Director of Education at The Entrepreneur School and author of School for Start-Ups An exhaustive and invaluable resource for companies seeking funding at any stage of their life cycle. Donald J. Mullineaux, DuPont Chair in Banking and Financial Services, Gatton College of Business and Economics, University of Kentucky “Get Financing Now is a must for every entrepreneur starting a business or growing a business. . . . Although an easy and enjoyable read, the information and insight Charles Green provides isn’t sugar coated. It is relevant and timely in today’s economic challenging times. It seemed that every page had at least one ‘golden nugget’ that an entrepreneur could literally ‘take to the bank.’” Karen Rands, strategic advisor to entrepreneurs regarding access to capital and coordinator of an Atlanta based angel investor group ”Charles Green’s new book Get Financing Now is a real-world description of what small-business owners must know to fund startup or growth, and improves the probability for small-business owners to get the funding they need.” Jerry Chautin, national business columnist, former entrepreneur, SCORE business mentor and SBA’s 2006 national Journalist of the Year “Charles Green is a change agent for entrepreneurs in the field of acquiring financing and capital. He has written the premier guide to help entrepreneurs through the changes needed to acquire capital in the new marketplace thrust upon us by the great recession. I highly recommend Get Financing Now.” Larry Tyler, author of Romancing the Loan A fantastic read! To the point and explains business terms for laymen—helps grasping the concept easily. Love it!” Colethea Jenkins, Build Grow and Enjoy |
| alternative financing for small business: Crack the Funding Code Judy Robinett, 2019-02-05 Crack the Funding Code demystifies the world of angel investing, venture capital, and corporate funding and lays out a strategic pathway for any entrepreneur to secure funding fast. Lack of funding is one of the biggest reasons small businesses fail. In 2016 in the United States alone, more than 31 percent of small business owners reported that they could not access adequate capital, and the lack of capital prevented them from growing the business/expanding operations, increasing inventory, or financing increased sales. This book will show you how to find the money, create pitches that attract investors, and then structure fair, ethical deals that will bring them new sources of outside capital and invaluable professional advice. Crack the Funding Code gives you the broader perspective on: how funding works, how investors think, and what they need to hear to put their money where your mouth is. Every entrepreneur who reads this book will get easy-to-follow deal checklists, a roadmap of where and how to locate the best funding resources and top business mentors for their industry or geographical location, and a step-by-step process to create pitches that make their idea or business irresistible. |
| alternative financing for small business: Getting a Business Loan Ty Kiisel, 2013-11-04 Describes alternative lending sources for small businesses, as well as traditional funding sources. |
| alternative financing for small business: The State Small Business Credit Initiative (SSBCI) Marcus Powell, 2013 The SSBCI provides funding to states, territories, and eligible municipalities to expand existing or to create new state small business investment programs, including state capital access programs, collateral support programs, loan participation programs, loan guarantee programs, and venture capital programs. This book examines the SSBCI and its implementation, including Treasury's response to initial program audits conducted by the U.S. Government Accountability Office and Treasury's Office of Inspector General. These audits suggested that SSBCI participants were generally complying with the statute's requirements, but that some compliance problems existed, in that, the Treasury's oversight of the program could be improved; and performance measures were needed to assess the program's efficacy. |
| alternative financing for small business: HBR Guide to Buying a Small Business Richard S. Ruback, Royce Yudkoff, 2017-01-17 An all-in-one guide to helping you buy and own your own business. Are you looking for an alternative to a career path at a big firm? Does founding your own start-up seem too risky? There is a radical third path open to you: You can buy a small business and run it as CEO. Purchasing a small company offers significant financial rewards—as well as personal and professional fulfillment. Leading a firm means you can be your own boss, put your executive skills to work, fashion a company environment that meets your own needs, and profit directly from your success. But finding the right business to buy and closing the deal isn't always easy. In the HBR Guide to Buying a Small Business, Harvard Business School professors Richard Ruback and Royce Yudkoff help you: Determine if this path is right for you Raise capital for your acquisition Find and evaluate the right prospects Avoid the pitfalls that could derail your search Understand why a dull business might be the best investment Negotiate a potential deal with the seller Avoid deals that fall through at the last minute Arm yourself with the advice you need to succeed on the job, with the most trusted brand in business. Packed with how-to essentials from leading experts, the HBR Guides provide smart answers to your most pressing work challenges. |
| alternative financing for small business: Finance Your Business The Staff of Entrepreneur Media, 2016-11-21 FUND YOUR DREAM BUSINESS Every business needs money. Whether you’re just starting out or are ready to expand, hunting for cash isn’t easy and you’ll need a game plan to be successful. The experts of Entrepreneur can help improve your odds of success by exploring the available options to guiding you from small business loans and angel investors to crowdfunding and venture capital. |
| alternative financing for small business: CAPITAL INVESTMENT AND FINANCING FOR BEGINNERS Dr. Ajay Tyagi, 2017-01-01 A corporate speculator embraces a monetary assessment while choosing whether to put resources into substantial resources or different business. The speculator needs to guarantee that it pays close to a reasonable incentive to buy the venture and that the monetary benefit for its proprietors is augmented. The part talks about monetary assessment with regards to venture choices with an emphasis on speculation valuation and organizing and assessment procedures. Capital gave to an organization, and any value produced inside, should just be put resources into resources if esteem is made for investors—that is, the point at which the estimation of financial advantages emerging from the advantages surpasses the cost of procuring those advantages. |
| alternative financing for small business: Alternative Finance Mina Fanea-Ivanovici, Hasnan Baber, 2024-11-06 The alternative financing space has grown exponentially in the last few decades, namely as a consequence of the financial crisis, technological advancement, niche customer segments, and more recently the pandemic. Now, with the inclusion of Fintech, online lenders, crowdfunding, accelerators, venture capitalists, or angel investors, this funding channel is no longer seen as a substitute for formal financing, but rather a core one. This book is a comprehensive guide to alternative financing methods, offering insights into emerging trends, the role of FinTech, and the intersection of finance with sustainability, innovation, and entrepreneurship. It fills a knowledge gap by exploring innovative financing channels such as fintech, green finance, and venture capital as well as other non-traditional ways of raising funds, which have become crucial for startups and businesses. It discusses the impact of financial technology (FinTech) on these methods and their function in supporting entrepreneurship and sustainable business, while also examining the implications of these technological advancements in the wider financial sector. It addresses challenges and opportunities for entrepreneurs and explores how alternative financing options can support growth and innovation, particularly in the context of environmentally and socially focused ventures, including how to integrate economic, social, and environmental considerations. The emphasis on sustainability and green finance aligns with the growing global concern for responsible business practices and the Sustainable Development Goals. While the primary audience for the book is scholars, researchers, and students, the inclusion of case studies, and the exploration of various financing options, extends practical cues for policymakers and practitioners and contributes to the understanding of how finance, entrepreneurship, and sustainability intersect in real-world business scenarios. |
| alternative financing for small business: Spank the Bank Karlene Sinclair-Robinson, 2013-01-01 This step-by-step guide shows startups and smaller companies how to locate and tap into non-bank financing. Rising financial star Karlene Sinclair-Robinson shares the wealth of knowledge she gained through personal experience as an entrepreneur. |
| alternative financing for small business: Financing SMEs and Entrepreneurs 2020 An OECD Scoreboard OECD, 2020-04-22 The 9th edition of the Scoreboard on Financing SMEs and Entrepreneurs report provides data from 48 countries around the world on SME lending, alternative finance instruments and financing conditions, as well as information on policy initiatives to improve SME access to finance. |
| alternative financing for small business: SME Funding Gianluca Oricchio, Andrea Crovetto, Sergio Lugaresi, Stefano Fontana, 2016-12-15 This book explores current financing options for small and medium size enterprises (SMEs), with particular insight into the European market. The authors position SME funding within a risk-averse lending environment with high regulatory costs on business loans, which has arisen from the recent financial crisis and new European bank capital regulations. Chapters in the book demonstrate how and why SMEs may be forced to leave the market and posit that shadow banking and other alternative funding options are viable channels for raising funds. A new and innovative SME credit risk model is also presented. This book will appeal to all who share an interest in sustainable solutions to issues in SME financing. |
| alternative financing for small business: Finance Your Own Business Garrett Sutton, Gerri Detweiler, 2016-01-05 Learn the financing fast track strategies used by successful entrepeneurs and investors. |
| alternative financing for small business: Handbook of Research on Social and Organizational Dynamics in the Digital Era Idemudia, Efosa C., 2019-08-30 Technology in the world today impacts every aspect of society and has infiltrated every industry, affecting communication, management, security, etc. With the emergence of such technologies as IoT, big data, cloud computing, AI, and virtual reality, organizations have had to adjust the way they conduct business to account for changing consumer behaviors and increasing data protection awareness. The Handbook of Research on Social and Organizational Dynamics in the Digital Era provides relevant theoretical frameworks and the latest empirical research findings on all aspects of social issues impacted by information technology in organizations and inter-organizational structures and presents the conceptualization of specific social issues and their associated constructs. Featuring coverage on a broad range of topics such as business management, knowledge management, and consumer behavior, this publication seeks to advance the practice and understanding of technology and the impacts of technology on social behaviors and norms in the workplace and society. It is intended for business professionals, executives, IT practitioners, policymakers, students, and researchers. |
| alternative financing for small business: The Small Business Advocate , 1995-05 |
| alternative financing for small business: Bank On Yourself Pamela Yellen, 2010-03-23 The Wall Street Journal, USA Today, and BusinessWeek bestseller Bank On Yourself: The Life-Changing Secret to Growing and Protecting Your Financial Future reveals the secrets to taking back control of your financial future that Wall Street, banks, and credit card companies don’t want you to know. Can you imagine what it would be like to look forward to opening your account statements because they always have good news and never any ugly surprises? More than 100,000 Americans of all ages, incomes, and backgrounds are already using Bank On Yourself to grow a nest-egg they can predict and count on, even when stocks, real estate, and other investments tumble. You’ll meet some of them and hear their stories of how Bank On Yourself has helped them reach a wide variety of short- and longterm personal and financial goals and dreams in this book. |
| alternative financing for small business: Startup Money Made Easy Maria Aspan, 2019-02-12 Let the experts at Inc.guide you through every critical step and potential pitfall as their on-the-ground reporting shows how to locate funding, manage your money, and smart hack your way to a comfortable retirement. Startup Money Made Easy gathers the best advice from the magazine’s pages, spotlighting celebrated entrepreneurs and inspiring stories. You’ll hear from: FUBU founder Daymond John, who mortgaged his family home for start-up capital—and built a $6 billion empire Makeup artist Bobbi Brown, who turned a modest lipstick line into a profitable 30-store enterprise Alexa von Tobel, who dropped out of Harvard Business School to launch the equity-magnate LearnVest.com Mark Cuban, Sallie Krawcheck, Max Levchin, and other founders who overcame financial obstacles on their way to the top Additionally, these stories include on-target tips that explain how to: Raise your first $10,000 in capital Power through the lean years Get friends and family to back you up Round up outside investors Go public or sell, while still staying in charge Reward people with great salaries and benefits Eliminate tax season surprises Grow without growing pains Cash flow problems are the number-one business killer. Whether you’re dreaming up a startup idea or knee deep in the craziness, learn to shore up your finances and safeguard the business. |
| alternative financing for small business: Rewarding Provider Performance Institute of Medicine, Board on Health Care Services, Committee on Redesigning Health Insurance Performance Measures, Payment, and Performance Improvement Programs, 2007-02-17 The third installment in the Pathways to Quality Health Care series, Rewarding Provider Performance: Aligning Incentives in Medicare, continues to address the timely topic of the quality of health care in America. Each volume in the series effectively evaluates specific policy approaches within the context of improving the current operational framework of the health care system. The theme of this particular book is the staged introduction of pay for performance into Medicare. Pay for performance is a strategy that financially rewards health care providers for delivering high-quality care. Building on the findings and recommendations described in the two companion editions, Performance Measurement and Medicare's Quality Improvement Organization Program, this book offers options for implementing payment incentives to provide better value for America's health care investments. This book features conclusions and recommendations that will be useful to all stakeholders concerned with improving the quality and performance of the nation's health care system in both the public and private sectors. |
| alternative financing for small business: Advances in Crowdfunding Rotem Shneor, 2020 This open access book presents a comprehensive and up-to-date collection of knowledge on the state of crowdfunding research and practice. It considers crowdfunding models and their different manifestations across a variety of geographies and sectors, and explores the perspectives of fundraisers, backers, platforms, and regulators. Gathering insights from a wide range of influential researchers in the field, the book balances concepts, theory, and case studies. Going beyond previous research on crowdfunding, the contributors also investigate issues of community, sustainability, education, and ethics. A vital resource for anyone researching crowdfunding, this book offers readers a deep understanding of the characteristics, business models, user-relations, and behavioural patterns of crowdfunding. |
| alternative financing for small business: Research Handbook on Alternative Finance Franklin Allen, Meijun Qian, 2024-04-12 Promoting a comparative perspective, this comprehensive Research Handbook aids in the understanding of alternative finance and its values in a global setting. Readers are encouraged to view alternative finance through the lens of economic mechanisms rather than terminology. |
| alternative financing for small business: Mergers and Acquisitions of Privately Held Companies Richard D. Harroch, David A. Lipkin, Richard Smith, 2018 |
| alternative financing for small business: Securitization of Small Business Loans Christopher Beshouri, 1994 |
| alternative financing for small business: The Complete Guide to Selling a Business Fred S. Steingold, 2017-08-30 Out there somewhere is a buyer looking to buy a business like yours. So if you're ready to sell, make sure you protect your interests and maximize your profit with this all-in-one guide. |
| alternative financing for small business: Entrepreneurial Finance Cristiano Bellavitis, Igor Filatotchev, Dzidziso Samuel Kamuriwo, Tom Vanacker, 2019-07-23 This book examines the proliferation of new sources of entrepreneurial finance and how these sources have the potential to make it easier for ventures to raise capital and grow. To date, entrepreneurial finance literature has developed a rich tradition of research on venture capital and angel finance. However, the emergence of ‘new’ sources of finance – such as crowdfunding – and the limited attention paid to ‘traditional’ debt financing and financial bootstrapping offer opportunities to explore, from different points of view and theoretical perspectives, the challenges that ventures face. The objective of this book is to explore these new and traditional sources of finance; suggest how these phenomena can be better understood conceptually; and guide new ways of understanding the topic in future, especially for researchers. The introduction outlines the new sources of entrepreneurial finance, and in comparing them with more traditional sources, proposes challenges in our conceptual understanding of these new and traditional sources. The subsequent chapters deal with important topics, including looking at the way different funding sources may interact; factors that impede family firms from getting external funding; how best to succeed with equity crowdfunding by looking at pre-selection processes; considering differences in perceptions towards funding sources arising from whether entrepreneurs are native born or immigrants; factors to consider when funding specialized assets in high uncertain sectors such as biotechnology; and the internationalization of business angel activity. This book was originally published as a special issue of the Venture Capital journal. |
| alternative financing for small business: Financial Management for Small Businesses Steven D. Hanson, Lindon J. Robison, J. Roy Black, 2017 |
| alternative financing for small business: Business Loans Daniel Shore, In the dynamic world of entrepreneurship, access to capital is often the lifeblood of success. Whether you're launching a startup, expanding an existing venture, or weathering unforeseen challenges, securing the right business loan can be a crucial step towards achieving your goals. This book is designed to be your comprehensive guide through the intricate landscape of business lending. From understanding the different types of loans available to navigating the application process and managing loan funds effectively, we'll walk you through every stage of the journey. Starting and running a small business is no small feat. It requires vision, determination, and, of course, financial resources. But with the right knowledge and preparation, obtaining and utilizing a business loan can become a strategic tool in your entrepreneurial arsenal. Whether you're a seasoned business owner or just starting out, this book aims to demystify the world of business loans, empowering you to make informed decisions that will propel your business forward. Let's embark on this journey together, as we unlock the doors to financial opportunity and success for your small business. |
| alternative financing for small business: Venture Capital and Angel Investing Andrew M. Lane, Nicole P. Mifflin, 2011 Entrepreneurs constantly seek capital for new and existing ventures even though they face considerable constraints in obtaining financing. Venture capital from outside investors has been considered an important driver in the start-up and growth of entrepreneurial firms. Unlike venture capital investments, angel investments are made by individual investors who do not make up a known population. Therefore, much of what is reported about angel investing comes from anecdotes and surveys of convenience samples, which are prone to biases and inaccuracies. This book examines the roles of angel investing in the entrepreneurial finance system and the funded and unfunded business plans to determine the key factors in the venture capital investment decision process. |
| alternative financing for small business: Solving the Capital Equation Tiffany C. Wright, 2007-05 Written for owners of small to medium-sized businesses, this text can provide practical and actionable advice for solving financing issues. Easy-to-follow examples and real case studies provide step-by-step alternatives for financing. |
| alternative financing for small business: How to Raise Money for a Small Business , 1993 |
| alternative financing for small business: The Global Findex Database 2017 Asli Demirguc-Kunt, Leora Klapper, Dorothe Singer, Saniya Ansar, 2018-04-19 In 2011 the World Bank—with funding from the Bill and Melinda Gates Foundation—launched the Global Findex database, the world's most comprehensive data set on how adults save, borrow, make payments, and manage risk. Drawing on survey data collected in collaboration with Gallup, Inc., the Global Findex database covers more than 140 economies around the world. The initial survey round was followed by a second one in 2014 and by a third in 2017. Compiled using nationally representative surveys of more than 150,000 adults age 15 and above in over 140 economies, The Global Findex Database 2017: Measuring Financial Inclusion and the Fintech Revolution includes updated indicators on access to and use of formal and informal financial services. It has additional data on the use of financial technology (or fintech), including the use of mobile phones and the Internet to conduct financial transactions. The data reveal opportunities to expand access to financial services among people who do not have an account—the unbanked—as well as to promote greater use of digital financial services among those who do have an account. The Global Findex database has become a mainstay of global efforts to promote financial inclusion. In addition to being widely cited by scholars and development practitioners, Global Findex data are used to track progress toward the World Bank goal of Universal Financial Access by 2020 and the United Nations Sustainable Development Goals. The database, the full text of the report, and the underlying country-level data for all figures—along with the questionnaire, the survey methodology, and other relevant materials—are available at www.worldbank.org/globalfindex. |
| alternative financing for small business: How to Get Loans for a Black Business with Bad Credit Sejj Eric Jackson, Jr., 2016-09-24 This book details alternative financing for black businesses who cannot otherwise obtain traditional bank funding. The subjects that are covered are hard money, revenue-based lending, angel investors, venture capital, IPO's, DPO's, and crowdfunding. This is an excellent book if you're seeking money for a business outside of a bank. It also talks about how to get funding when you have bad or no credit at all. Rather you're a business owner, or someone who's wanting a business this book is a need to have. |
| alternative financing for small business: Alternative Finance John S. Gordon, 1992-12-01 |
| alternative financing for small business: The Pig Book Citizens Against Government Waste, 2013-09-17 The federal government wastes your tax dollars worse than a drunken sailor on shore leave. The 1984 Grace Commission uncovered that the Department of Defense spent $640 for a toilet seat and $436 for a hammer. Twenty years later things weren't much better. In 2004, Congress spent a record-breaking $22.9 billion dollars of your money on 10,656 of their pork-barrel projects. The war on terror has a lot to do with the record $413 billion in deficit spending, but it's also the result of pork over the last 18 years the likes of: - $50 million for an indoor rain forest in Iowa - $102 million to study screwworms which were long ago eradicated from American soil - $273,000 to combat goth culture in Missouri - $2.2 million to renovate the North Pole (Lucky for Santa!) - $50,000 for a tattoo removal program in California - $1 million for ornamental fish research Funny in some instances and jaw-droppingly stupid and wasteful in others, The Pig Book proves one thing about Capitol Hill: pork is king! |
| alternative financing for small business: Disrupting Finance Theo Lynn, John G. Mooney, Pierangelo Rosati, Mark Cummins, 2018-12-06 This open access Pivot demonstrates how a variety of technologies act as innovation catalysts within the banking and financial services sector. Traditional banks and financial services are under increasing competition from global IT companies such as Google, Apple, Amazon and PayPal whilst facing pressure from investors to reduce costs, increase agility and improve customer retention. Technologies such as blockchain, cloud computing, mobile technologies, big data analytics and social media therefore have perhaps more potential in this industry and area of business than any other. This book defines a fintech ecosystem for the 21st century, providing a state-of-the art review of current literature, suggesting avenues for new research and offering perspectives from business, technology and industry. |
| alternative financing for small business: How to Start a Business in Colorado Entrepreneur Press, 2007-07-09 SmartStart Your Business Today! How to Start a Business in Colorado is your road map to avoiding operational, legal and financial pitfalls and breaking through the bureaucratic red tape that often entangles new entrepreneurs. This all-in-one resource goes a step beyond other business how-to books to give you a jump-start on planning for your business. It provides you with: Valuable state-specific sample forms and letters on CD-ROM Mailing addresses, telephone numbers and websites for the federal, state, local and private agencies that will help get your business up and running State population statistics, income and consumption rates, major industry trends and overall business incentives to give you a better picture of doing business in Colorado Checklists, sample forms and a complete sample business plan to assist you with numerous startup details State-specific information on issues like choosing a legal form, selecting a business name, obtaining licenses and permits, registering to pay taxes and knowing your employer responsibilities Federal and state options for financing your new venture Resources, cost information, statistics and regulations have all been updated. That, plus a new easier-to-use layout putting all the state-specific information in one block of chapters, make this your must-have guide to getting your business off the ground. |
10 Best Alternative Lenders for Small Businesses - LendingTree
Jul 17, 2024 · Alternative lending can help small business owners secure funding from a nonbank or online lender when a traditional bank or credit union isn’t an option.
10 Non-SBA & Non-Bank Small Business Loan Alternatives (That …
Mar 11, 2021 · There are a number of non-SBA and non-bank funding options available to small businesses in 2021, including alternative lending institutions like direct online lenders, easier-to …
Alternative Lending For Small Businesses – Forbes Advisor
Jan 26, 2023 · Small business owners who can’t qualify for traditional loans or need cash quickly can turn to alternative lending options like online loans, lines of credit and merchant cash...
Alternative Lending Options: What You Need to Know
May 19, 2025 · Types of alternative lending. There are many types of alternative lending for small businesses. Here are some of the most common options available. Bridge loans: Bridge loans are …
8 best alternative business loans, lenders, + funding types
Jun 5, 2025 · 2. Bluevine. Best for: Lines of credit Max loan amount: $500K for term loans and $250K for credit lines Starting interest rate: 7.8% for a 6-month term Term length: Up to 12 …
Alternative Lending For Small Business - Bankrate
Feb 27, 2024 · Most small businesses get financing through a traditional small business loan, SBA loan or line of credit. Alternative lending is any type of financing that falls outside of traditional …
8 Alternative Funding Options for Small Businesses
May 9, 2025 · Learn about the more unconventional funding methods available to small business owners. This guide is updated regularly to account for any emerging and nontraditional funding …
Best Alternative Business Loans in 2025 | Business.org
May 30, 2023 · Many small-business owners like alternative lenders because they have low (er) borrower requirements and super-fast funding times. And in this article, we’ve rounded up the …
Top Alternative Financing Options for Small Businesses
Jan 23, 2025 · Struggling to secure a bank loan? Learn about alternative financing for small business, including lines of credit, factoring, and crowdfunding.
Small Business Loan | Miami, FL, LMC Alternative Business …
If you’re looking for a smart financing solution, a small business loan from LMC Alternative Business Capital might be right for you. Our programs are designed to help you with your financing needs …
10 Best Alternative Lenders for Small Businesses - Lendi…
Jul 17, 2024 · Alternative lending can help small business owners secure funding from a nonbank or online lender when a traditional bank or …
10 Non-SBA & Non-Bank Small Business Loan Alternatives
Mar 11, 2021 · There are a number of non-SBA and non-bank funding options available to small businesses in 2021, including alternative lending …
Alternative Lending For Small Businesses – Forbes Advisor
Jan 26, 2023 · Small business owners who can’t qualify for traditional loans or need cash quickly can turn to alternative lending options like …
Alternative Lending Options: What You Need to Know
May 19, 2025 · Types of alternative lending. There are many types of alternative lending for small businesses. Here are some of the …
8 best alternative business loans, lenders, + funding types
Jun 5, 2025 · 2. Bluevine. Best for: Lines of credit Max loan amount: $500K for term loans and $250K for credit lines Starting interest rate: 7.8% for a 6 …
