May
19
2010

Funding By Any Means Necessary

An article by admin

The current lending environment has prompted small business owner to shed their old ways of simply relying on banks for business funds. Now entrepreneurs are using the same drive, creativity and ambition used to create and run their businesses, to carve out new roads towards business funding.

Microloans

As stated in a recent allbusiness.com article, “Microcredit originated in the Third World as a way to help poorer people launch very small businesses. But now thousands of U.S. entrepreneurs are turning to microcredit as an alternative to traditional lending.” The article notes some of the key benefits of this type of loan to be; business training (microlenders are required to offer training to small business owners receiving the loans), flexible requirement, the ability to build credit and the significantly less amount it time it takes to receive a microloan in comparison to a typical bank loan.

Counting on the Future

Some small business owners are literally banking on their futures. “Through an online marketplace called the Thrust Fund, the three have offered up a percentage of their future lifetime earnings in exchange for upfront, undesignated venture funding,” (Inc.com). The entrepreneurs are offering 6 percent, 3 percent and 3 percent of their future earnings in exchange for $600,000, $300,000 and $300,000 in upfront cash. Some small business owners don’t agree with this method of business funding. Still, others feel that it may be worth it, to get their businesses going in the direction they want.

Business Cash Advance

The business cash advance is yet another type of business funding that small business owners have been increasingly using. It gives entrepreneurs the chance to get up to $500,000 for their businesses and it comes with a variety of benefits: