Helpful Tips on Securing the Alternative Financing You Need
When might your business need alternative financing? Typically, it’s when you don’t have immediate access to working capital when you need it fast. You might be a startup without a history of credit. Maybe your business credit score tanked in the Great Recession and you haven’t built it back up. You may not have a business line of credit. Alternative credit can fill the void when banks won’t meet your needs.
If you’re considering alternative financing, here are some things you should consider:
- Ask yourself what needs to be funded and how much time you have. When you only have a short time, it might worth working with an alternative lender.
- What’s the rate associated with the financing? Although this type of financing can be more expensive, there are times when you might want to consider spending a little more for a financial opportunity that can either make a lot more or keep you from having higher penalties (like owing the IRS).
- Does your business need additional working capital to survive?
- Does the reason you need alternative financing make sense to your overall business goals? Think about how you are going to use the funding and if it helps to create positive growth.
- How will you pay it back? If you’re already facing a crisis, how will this money prevent you from going in deeper?
There are a lot of reasons you might choose alternative lending over a traditional loan. You might need to buyout a partner to avoid having your business divided during a divorce. Maybe you can expand to a location that is newly available. You could have an inventory or equipment purchase opportunity that makes sense.
Contact Diamond Commercial Group for alternative lending options that will help you take your business to its next steps. We have flexible plans that will open the doors for you.