Banks and the SBA just won't deal with most small businesses, no matter how great, or how successful your business has become. There is just too much paperwork to make it worth their while. So we look elsewhere.
While there are dozens of ways to financing an emerging business, or a small home business, here are a few of my favorites.
1. Go ahead and start the business, but start it small. Give it a few months, or even a couple of years, until it grows strong enough to support you as a full time endeavor.
2. Scale back the business by starting with a smaller inventory.
3. If your bank is turning you down due to lack of experience, go get that experience, then go get your loan.
4. Lease equipment instead of buying it.
5. Start your business part time, on evening on weekends, holding onto your full time job, until you can show real profits.
6. Take on a partner if the business has the potential of supporting two people.
7. Sell assets to raise money. Have a spare car? or antique jewelry? That may be your key to financing.
8. Look seriously at crowd funding. It is becoming a major source of small business funding, especially for start ups.
Finding financing for a small business is not easy. But it has never been easy. It will challenge your creativity and perseverance, but if you need that financing, it is there.
