Launching a startup or growing your small business is no mean task. You may encounter setbacks such as funding and stringent policies by banks. Instead of lamenting about your woes, you should learn more about alternative financing. The article discusses four major small business lenders.
1. Venture Capitalists
If you are running a small business or startup, you may opt to relinquish part of your company’s equity to an investor. In return, you get funding to finance your enterprise. This form of business funding is known as a venture capitalist. Apart from financial assistance, you accumulate a wealth of knowledge and secure connections in the business world.
2. Community Development Lenders
Unlike conventional banks that have stringent lending policies, community development finance companies have flexible terms and conditions. You do not have to possess a good credit score, for starters, especially if it is a startup. Also, you get to work with a team that understands the challenges of small businesses. Nonetheless, you have to prove that you are responsible and give communication in case of setbacks along the way.
Over the years, there has been an influx of crowdfunding platforms. The platforms allow entrepreneurs to raise finance for their business from a pool of investors. Major crowdfunding platforms include GoFundMe and Kickstarters. It is worth noting that some sites have extra costs, such as processing fees. You should, therefore, take time to familiarize yourself with the terms and conditions.
4. Angel Investors
The idea of trading equity with capital may not sit well with you. If this is the case, then you should consider securing finances from angel investors. The beauty of these financing options is that you own all the shares in your business, unlike venture capitalists.
Financing with Star Capital
As you seek an alternative funding option, you should strive to pick an entity that meets your results. Furthermore, you have to secure timely financial services to kickstart your business. In this case, you should reach out to Star Capital for professional assistance.