Alternative Financing Options for Small Business Owners

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Alternative Financing Options for Small Business Owners

  1. 1. Alternative Financing Options for Small Business Owners<br />By David Gass<br />
  2. 2. Alternative Financing Options<br />28 Options to get capital for your business<br />Financing or other options<br />Some resources<br />
  3. 3. Alternative Financing Options<br />Trade Credit<br />Single largest source of lending in the entire world<br />Easiest and most accessible type of financing<br />
  4. 4. Alternative Financing Options<br />Accounts Receivable Financing<br />Factoring<br />% of the A/R as a fee<br />Need to have a diversified portfolio <br />BtBCapital.com <br />
  5. 5. Alternative Financing Options<br />Cash Advance – Checking Account<br />Advance on your deposits<br />Paid back daily<br />On Deck Capital<br />
  6. 6. Alternative Financing Options<br />Cash Advance – Merchant Account<br />Advance on your charges<br />Up to 3 months charges<br />Paid back daily<br />On Deck Capital<br />
  7. 7. Alternative Financing Options<br />Advanced Sales<br />Collect money up front<br />Collect a portion of sales up front<br />
  8. 8. Alternative Financing Options<br />Angel Investors<br />Angel Investor Groups<br />Private individual investors<br />Earn.com > Business Toolbox > Investor Application<br />
  9. 9. Alternative Financing Options<br />Economic Development Commissions<br />Local organization<br />Helps businesses relocate/find solutions<br />
  10. 10. Alternative Financing Options<br />Invoice Financing<br />Advance on an invoice <br />Needs to be a company with good credit<br />
  11. 11. Alternative Financing Options<br />Business Incubators<br />Typically technology based companies<br />New ventures<br />Offers rent, support, advice and capital<br />
  12. 12. Alternative Financing Options<br />Business Credit Cards<br />Business not Personal<br />Careful of the balances<br />Need good personal credit in most cases<br />American Express<br />
  13. 13. Alternative Financing Options<br />Bank Line of Credit<br />Micro Loans – under $25,000<br />$50,000 next bench mark<br />Rate the bank <br />BankRate.com<br />
  14. 14. Alternative Financing Options<br />Grants<br />Federal Government Grants<br />Grant Writers<br />Grants.gov<br />
  15. 15. Alternative Financing Options<br />The Four Fs<br />Founders<br />Friends<br />Family<br />Fools<br />VirginMoneyUS.com <br />
  16. 16. Alternative Financing Options<br />Hard Money Lenders<br />Very High Interest Rates<br />Real Estate Specific<br />
  17. 17. Alternative Financing Options<br />Peer to Peer Lending Networks<br />Prosper.com – coming soon<br />Others search google<br />
  18. 18. Alternative Financing Options<br />Inventory Factoring<br />Lending money against valuable inventory<br />Higher Interest Rates<br />
  19. 19. Alternative Financing Options<br />Leasing Equipment<br />It’s the Use of the Equipment not the Ownership<br />Off the balance sheet<br />
  20. 20. Alternative Financing Options<br />Equipment Sale Lease Back<br />If you already own the equipment <br />Lease company buys and then leases it back<br />
  21. 21. Alternative Financing Options<br />Manufacturer Financing<br />Vendors offering internal financing<br />Buy from them direct and finance with them<br />
  22. 22. Alternative Financing Options<br />Word of Mouth<br />Talk to your CPA, Attorney, Financial Planner<br />Who do they know<br />It’s the Network<br />
  23. 23. Alternative Financing Options<br />Retirement Plan Borrowing<br />Talk to your financial planner<br />401k – up to 50% of the vested value<br />
  24. 24. Alternative Financing Options<br />SBA Loans<br />Microloans 7 (m) Program<br />LowDoc Program<br />Express Loan Program<br />7(a) Loan<br />
  25. 25. Alternative Financing Options<br />SBA SBIC’s – Small Business Investment Companies<br />SBA Sponsored<br />Private investment funds<br />May or may not have a debt element<br />
  26. 26. Alternative Financing Options<br />Keep your Current Income Source<br />Don’t stop your flow of income<br />Keep a source before income trickles in<br />
  27. 27. Alternative Financing Options<br />Selling Licensing<br />Sell intellectual property rights of use<br />Let others pay you for what you are trying to sell or the knowledge you have<br />
  28. 28. Alternative Financing Options<br />Selling Assets<br />Sell assets, equipment not in use<br />Leverage what you have<br />
  29. 29. Alternative Financing Options<br />Selling Assets<br />Sell assets, equipment not in use<br />Leverage what you have<br />

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