While 40% of startups have managed to secure loans, the process is by no means easy or without its own issues. Business owners need to provide a large amount of documentation to satisfy the requirements of the bank or investors. Alternate means of funding might just be the solution, with crowdfunding already spurring business owners on to give their best pitch. But are there other means of funding businesses can look forward to?

Cryptocurrency Could Be A Solution

Before making that dreaded appointment at the bank to go through the traditional routes of finance, techno-savvy business owners might want to consider a different approach. As cryptocurrency is becoming more mainstream, bitcoin funding is becoming more prevalent. While this poses some steep competition for banks and other financial institutions, it creates more opportunities for those who are not stuck in the traditional finance system. Merchants are starting to accept cryptocurrencies as a form of payment, which opens up possibilities for those who use bitcoin.

Security Backed Loans For Partners Who Don’t Qualify

It may just happen that a startup has all the documents in place, is a viable business concern, and has the right people behind it. However, when the lenders or investors do a little bit of digging on the directors of the business, they may come across credit history that is not entirely high enough for funding. This could stop the business from starting or expanding, which means the director needs to get that score up fast. A security-backed loan is one way of doing it as the financial institution knows the customer is good for the money even if they’re unable to meet the installments.

Alternative Loans Without Security

Another way is through a credit builder loan, which allows consumers to build up their score without security. They simply have to repay the loan amount and interest before they get access to the funds. This is a non-risky way of improving a score without dampening the cash flow. Applicants are encouraged to compare the best credit building loans in order to find a solution that fits their pocket. Business owners may also want to consider raising the capital in their personal capacity if it’s a small amount through unsecured loans such as personal loans and credit cards IVA advice.

Don’t Forget About The Equity

One of the biggest reasons startups find it difficult to secure finance is due to the risk it poses to the financial institutions. One of the ways they can bridge this dilemma is by offering the financial institution a covering mortgage on the equity portion of their property. If the financial institution is unwilling to register this covering bond, customers could also try to access the equity directly through an equity loan.

Although navigating through the various finance options for businesses may be a tricky affair, technology makes the process a little simpler thanks to online applications and internal ratings. For startups, the barrier to entry into the market shouldn’t have to be finance, as something as small as a crowdfunding campaign among family and friends could make a significant difference. Knowing what’s available and what the requirements are will make all the difference.