As a start-up or expanding small business owner, entrepreneurs learn pretty quickly that obtaining capital is a catch 22. You needs to show a business plan, complete with profit and loss before conventional banks would even take a serious look at your company; yet it takes capital to create the numbers in the first place. Banks lending to small businesses were already few in number prior to these turbulent times, but now finding money for your business take a combination of creativity, knowledge and determination.
It is a less complicated process to get a line of credit than a loan. Lines of credit allow businesses to access capital for operations on an “as needed” basis. With a proper business structure and in some scenarios a guarantor you can have the money you need within 30 days. Outside of banks there is “private lending” which allows individuals or organizations to invest in your entity based on the terms of your agreement. Over the last few years we see an emerging trend called Crowd Funding. This system procures funding through social media sites. If a “supporter” believes in your vision, they can be one of many to help fund your project. Last but not least, there are many people losing money in their 401K seeking a different option, find and talk to them, create a solution.