Business Financing Alternatives to Small Business Grants
There are a number of other business financing options you can explore if a business grant does not meet your small business's needs, or if you have a difficult time qualifying for grants.
Crowdfunding remains a popular way to raise funds. Sites like Kickstarter, Indiegogo and GoFundMe offer similar fundraising platforms that can be shared online and across social media to garner donations. Crowdfunding is more commonly used as a means for raising money for individuals and nonprofits, but it is possible to use it for small business funding purposes.
Keep in mind that there are restrictions that come with crowdfunding. There will always be a payment fee deducted from the total amount raised, and depending on the platform, there may also be a wait period before the funds can be withdrawn.
Bank loans, or loans offered by banks, are the most traditional form of business financing. The actual type of loan can vary, but the majority tend to be long-term installment loans with a lump sum payout and repayment period of one year at minimum. Bank loans are highly desirable because they typically offer a large amount with lower interest fees in comparison to other lending options.
However, bank loans have stringent qualifications and are not easy to qualify for. New businesses or those with only a short credit history may have a difficult time meeting those qualifications.
Alternative business loans are an ideal financing option for newer business in need of financing. Alternative lending refers to any kind of non-traditional lending — financing that does not come from a traditional lender like a bank. Loan types vary and include everything from short-term loans to revolving lines of credit. This makes it easier to find the kind of financing that fits your business needs.
Online financing companies comprise the majority of alternative lenders and typically offer benefits like simple applications, fast loan processing and rapid funding. Alternative loans also tend to have less strict application requirements when compared to traditional bank loans, although they can be more expensive than traditional forms of business financing. At Headway Capital for example, we determine your eligibility by factors other than just your credit score.
How Headway Capital Can Help
If you're in search of business financing, Headway Capital's True Line of CreditTM may be the funding solution you're looking for. Take advantage of fast funding, a flexible payment schedule and revolving credit to move your small business forward today.
Business line of credit
12, 18 or 24 months
No Hidden Fees
See our Rates & Terms for details
Weekly or monthly
Clear payment terms, interest does not compound, no penalty for early payoff