Being a business owner is terrifying stuff when your finances are on the line. Staring at your bank balance can sometimes seem like witnessing a horror movie, with the financial equivalent of Jason Voorhees hacking at your cash – the latest in a long line of bankruptcy victims.
It can sometimes feel hopeless when the bottom falls out of your business. But there are plenty of options available to SMEs, and a number of them don’t involve those pesky banks.
Indeed, a large number of businesses have lost confidence in the idea of securing a loan from major banking institutions, and it’s leading to the continued success of alternative avenues.
So, if you’re on the run from a financial slasher film, which avenue should you escape down?
The big alternatives
Alternative finance is essentially an umbrella term consisting of factoring companies, short-term loans, construction finance, crowdfunding websites, peer-to-peer lending and many more.
Finding the type of finance to suit you depends on your business. Inventory financing, for instance, is geared toward industries with seasonal fluctuations in cashflow, while factoring companies might suit better established industries.
Essentially, these companies are an endless pool you can play around in and, provided you choose wisely, could prove to be the alternative to your business failing.
Keep a partner shtum
If you’re a long-term business owner or have a domineering entrepreneurial spirit, it can be difficult to give up the reins to someone else. But if you’re looking for added investment, then taking on a business partner could be the difference between your company staying afloat and sinking.
If you want to maintain complete control of your business, try finding a silent partner who will stay shtum but still invest money in your business enterprise.
While they might feel the need to chime in every now and again, you can simply take their advice on board and do as you please – that is, unless your business is failing.
Get in with the government
In a bid to boost the economy, the government is always willing to front grants or business loans to companies they deem valuable.
While this might seem like the perfect way to gain some dough, the process is going to take a lot of blagging and justification of your business practices. These grants also tend to concern specific markets, so you might have to bend your business plan into the mould that the government wants if you’re looking to gain a fresh injection of cash.