No bank likes to tell their small business customers “no” when they’re applying for financing, but if it has to be done, the blow could be softened by pointing out that a bank loan is not the only option small business owners have when it comes to raising funds.
Once a small business owner has figured out how much they need, and what they need it for, there are some good options available to them, such as borrowing from friends and family, for a start. This works well if the friend or relative is in business themselves, and keen to invest, and probably wonâ€™t charge interest.
Then thereâ€™s looking at what assets arenâ€™t being used, and can be sold to raise the cash. If a business has more than one vehicle, it could be time to decide if the second one is really necessary, or if it can be sold.
Angel investors and venture capitalists are also an option, but itâ€™s worth pointing out to small business owners that theyâ€™ll probably want a say in how the business is run. Often this is a good thing, as theyâ€™ll be experienced in business themselves and can bring their knowledge to the table.
Read the full article at smallbiztrends.com.