What sources are available to finance working capital needs of small businesses?
Answer by Nicole Fende:
In addition to Michael's great suggestions, you may wish to consider:
- Factoring – if you are selling on terms such as Net 30 this could be a huge benefit and only creditworthiness of your client is considered
- Peer to Peer Lending – While you will not get the same rates as a bank, the risk tolerance is much higher
- Crowdfunding – Sites such as Peerbackers.com and Kickstarters.com can assist you with this. You only pay if you raise the money you need.
- Offer pre-paid discounts on products and services to generate cash now
Truly the options are only limited by your imagination and the type of business you run. Good luck!