by James Scott
Since the international banking crisis many companies are having a difficult time raising capital. Why is this? Because most companies took the well trampled path of traditional finance to simply get loans to fund their business. The mindset of small and medium size business is to go to their bank and get a loan or a line of credit, get a second mortgage on their house and put all their assets on the application as collateral so the bank feels comfortable issuing the funding. This works great as long as you have perfect personal credit, naturally seasoned corporate credit and the banks are lending. The reality is, most people and companies don’t qualify for these bank funding options and currently banks are holding onto their money. So what does a company do if they need startup or expansion capital, a stressful question with an easy answer.
Seek alternative funding like angel investors, private investors, hedge fund lenders, invoice factoring, hard money and the list goes on and on. There is no reason your business cant acquire the capital it needs with relative ease by seeking out these alternative funding sources. Currently, as private equity firms are closing their doors, a lot of out of work venture capital professionals are opening smaller, more effective organizations that take their substantial international funding contacts and placing them online and charging a membership fee for the entrepreneurs to get unlimited access to them. With this taking place, more companies are getting funding than ever because they are truly getting access to real options to achieve their funding needs. Stay away from banks and look for online finance databases, this is where you’ll find fast and easy funding. There are countless options in the international financing market place whether you're a startup or seeking expansion capital and even if you have bad credit or no corporate credit.
