If you’ve ever applied for a business loan from a traditional bank or credit union and been denied, you know the feeling. Fortunately, however, there are other funding options available for businesses. These options generally come under the heading of alternative financing.
What Is Meant by Alternative Financing
Alternative financing is a collective noun that refers to any source of funding that does not originate from a traditional bank or credit union. According to some sources, up to two-thirds of small businesses obtain financing from non-traditional sources. Perhaps your business would like to learn more?
Situations Conducive for Alternative Financing
There are a wide variety of situations and occasions in which a business may need to turn to alternative financing. Some of these are real opportunities, such as:
- Expansion to new locations or product lines
- Buying out a partner
- Purchased large amounts of inventory at a favorable price
In other cases, additional capital may be needed when adverse situations occur, including:
- Fluctuations in the overall economy
- Bad weather such as hurricanes, or record snowfalls force businesses to close for a period of time
- Unexpected repairs or equipment failures
Types of Alternative Financing
There are many different business models and situations that can affect businesses. Accordingly, there is a full spectrum of options in the alternative financing arena. Some of these include:
- Purchase order financing
- SBA loans
- Bridge loans
- Hard money loans
- Merchant cash advances
- Unsecured lines of credit
Array Financial: The Alternative Financing Source
As you look over your business’s financial situation, you may want to learn more about certain types of alternative financing. Give Array Financial a call. They are experts in many types of alternative financing for small- and medium-sized businesses. They will certainly be able to help.