To run a small business, in most cases, you’ll have to seek out financing for your business or it will most likely be at risk for collapsing. There’s a pretty good chance that you’ve run into a problem or two while looking for financing, but don’t get too discouraged. This happens to many people, and it could very well be happening because you’re looking in the wrong places.

Bank Loans
In the past, small businesses had an easy time obtaining funding through a bank. For the most part, that’s not really true anymore. Banks will typically not want to finance a small business because of the higher risk. In most cases, banks won’t want to invest any money if it’s under $100,000. If you need less than that and can’t meet the strict criteria they require, banks probably won’t loan to you. Although many small businesses are in this boat, banks are still one the first places they look to for funding.

Credit Cards
After banks, credit cards are the next stop on the search for funding. It’s definitely easier to get approved for a credit card than for a traditional loan, but that approval comes at a hefty price. Credit cards have pretty high interest rates, making it difficult to pay them off. If you’re not necessarily looking to pile on debt, financing your business through credit cards probably isn’t your best funding option.

A Solution
Instead of making the same mistakes others have made before you, consider trying out a different solution. Alternative funding options, like invoice factoring, let you secure the financing you need easily and debt-free. Financing your business doesn’t have to be difficult. If you want to stop looking in the wrong places for money for your business, you can contact us today and get your business running smoothly.

Post written by Senior Copywriter “Nikki Wakefield” of CoreFund Capital, LLC.