When a businessman starts his business venture, he would usually pool his own savings, investments from friends and family members, and, in case this is not enough, would approach banks to get a loan. But is a bank loan the only option business owners have when it comes to getting financial backing for their business venture?
Although it might not seem like it but each business type has its own just-right financing option. For example, if you are a small business owner and your line of business is developing technologies, you might want to take advantage of grants. Aside from the Small Business Administration’s Small Business Innovation Research Program, there are also a number of regional and minority ones that you can check online. One upside to this financing option is that there’s a lot of free money. However, how you use the funds is highly limited.
If what you need is just a something to help your company expand, you might want to consider getting in touch with an angel investor. Angel investors are easy to find as they have a wide-reaching network. They can also be quite patient when it comes to repayment of their investment. The downside, however, is that it can be quite difficult to manage the varying preferences of these angels.
If, on the other hand, you are just starting up and do not have any asset or property to use as collateral in order to secure a loan, you might to consider a number of unsecured loans options. You may not be aware of it but the most common of this type of loan is the one done through a credit card. As with any unsecured loan option, you do not have to bring up your house as collateral in order to use your credit card. However, you have to ensure that you make more than the minimum payment so that you won’t find yourself paying more than what you have to.
If you have a less-than-perfect credit standing, you might want to try securing a bad credit unsecured loans. This type of loan does not look at your credit report but on your current ability to repay the loan. That way, your past financial habits would not have an effect on your getting approved or rejected.
Lastly, you might also want to try a payday loan. This type of unsecured loans is also known as the paycheck loan or payday advance, and is a kind of a short-term loan where the cash is deposited directly to the applicant’s bank account once his application has been approved.
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