If you have a good idea for a new business, but just can’t seem to get the bank to see things your way, all is not lost. It could be that your credit score is not up to scratch or your bank has just met its lending quota that month. Whatever the reason, even if your bank won’t help, there are still many other credible alternatives.
1. Cash Advances
If you have an original concept for promoting an existing product then it may be that potential merchants or suppliers will want to support you.
Cash advances or credit from merchants is becoming an increasingly popular way of helping a new businesses get off the ground and ensures strong professional connections from the very beginning.
Put your proposition to prospective creditors and it could be the best move you’ve ever made.
2. Secured Home Loan
If you own your own property, then it is possible to get a loan to start up your business using your house as security. This would be in addition to your existing mortgage and doesn’t have to come from the bank. And because the borrowing would be secured on a fixed asset, namely your house, it is possible to stretch your loan over a much longer term, therefore making the payments a lot easier to manage.
3. Angel Investors
For an ownership stake in your company, an Angel Investor will lend you the money to start up your business. But in addition to the funds, they can also bring with them a wealth of knowledge on how to create a successful business, giving you vital support.
Simply search ‘Angel Investors’ online and you could be surprised how many people want to talk to you.
This is an increasingly popular online phenomenon where you actually get complete strangers to give you the money to start up your business.
Thanks to the powers of sites such as Kickstarter and Crowdcube, individuals are willing to offer anything from £1 to £1 million to invest in your business and get your venture off the ground. And because your success depends on the strength of your business case, sites such as this can also provide a clear indication of how successful your business will be when it comes to fruition.
5. Take on a Partner
If you have the drive to get a business off the ground, then there may be someone close by that has the money to support you. This could be an existing work colleague or a family member.
They may be willing to lend you the money with no strings attached, or they may want to enter into a formal business relationship with you.
When you start looking, it is surprising how many people you know that may be willing to help.
Just because the bank says no, doesn’t mean your business idea isn’t a good one. Think outside the box and who knows where you could end up.
By Harry Price
Harry Price is a writer and artist living on the siuth coast with his wife and 3 dogs. They all love long coastal walks specially on a wet and windy day.