A business minded individual can have the perfect idea and the best plan to execute it, but neither will get that person anywhere without funding. A business startup can cost anywhere from $100 to tens of thousands of dollars. Some businesspersons need to use unconventional methods because they do not meet all the requirements for traditional business loans. An entrepreneur can use one or several unconventional tactics to piece together the funds to start a business.
Using Credit Cards to Start a Business
Using a business credit card to start a business is rather unconventional, but it still works. You should always research the type of business credit cards available and consider the cardholder rewards such as cash back or traveling points, as well. The applicant has to have good credit to obtain approval for a business credit card, however. Finding a business credit card requires only a brief amount of research online. The application will most likely take less than five minutes to complete, and the person will receive an answer within 60 seconds.
Title Loans for Small Ventures
A title loan is a cash advance that lenders base on a person’s vehicle value. It can work for a small business venture if the person’s vehicle is new. To obtain a title loan, the consumer must have the title in hand along with several references and income information.
Peer-to-Peer Lending Works
Peer-to-peer lending is a relatively recent option that has become an extremely popular option for SME’s. Investors sign up on lending sites so that they can offer entrepreneurs the opportunity to get their businesses started. The peer-to-peer loans for businesses range from approximately $3,000 to as much as $500,000. The annual percentage rates on the loans are low, as well. The application process is smooth, and it has three to four steps. First, the consumer must complete a brief application. Next, the person finds out about approval and either accepts or reject the repayment terms. Finally, the applicant receives the funds to help the business to grow. He or she can repay the advance according to the contract terms. Lenders can search for people who need help, or the applicants can search for random offers.
Merchant Cash Advance for Start-up Funds
A merchant cash advance is a product that lenders make available to businesses that are already open and conducting credit card transactions. A loan from a merchant cash advance is not normally for startup funding. However, some business owners do find a way to use the advances for that purpose. To qualify for a merchant cash advance, the business has to earn a certain amount of cash through credit card sales. The business owner has to prove that the amount is valid with at least several months of receipts. A merchant cash advance can pay for equipment, utilities, employee training and more.