3 Uncommon Sources for New Business Financing

Securing new business financing is one of the most important parts of starting a business. Without the money to do so, you are not going to be able to get off the ground. Here are a few uncommon sources for new business financing.

1. Peer-to-Peer Loans

One type of loan that you could choose to pursue is a peer-to-peer loan. This is accomplished by visiting some of the many peer-to-peer lending websites that are out there. You will be able to submit a request for financing and lenders will be able to bid on your loan. This type of lending allows you to borrow money directly from another individual that is willing to lend.

2. Home Equity Loan

Another way that you could get the money that you need for new business financing is a home-equity loan. With a home-equity loan, you will be able to tap into the equity that you have accumulated in your home. This method is not going to require you to convince any lenders about your business plan.

3. Personal Loan

Instead of trying to secure financing directly for your business, you could choose to take out a personal loan. This may require you to put up some type of collateral or have a great credit score to qualify.

Can you get a peer to peer loan with bad credit?

Getting a peer-to-peer loan with bad credit is generally easier than trying to work with a traditional lender if you have a low credit score. The good thing about peer-to-peer loans is that you are generally able to advertise your loan request to a network of many different individual lenders. All of them will have their individual standards when it comes to loaning money to people. Many times, when you have bad credit, it will simply mean that you have to pay a higher interest rate than you would have had to pay if you had good credit.

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