It’s long been observed that ‘money comes to money’ and that it’s easier to borrow a million from the bank than it is to borrow a thousand. It may not really be that easy to borrow a very large amount of money (Unless that is, you can prove that you don’t really need it!) It certainly is true that banks seem to look upon small businesses with suspicion. If they will lend it’s often less than is needed, and comes with huge loan arrangement fees and high interest rates.
The obvious answer to to look for alternative sources of finance, the problem is finding them. One answer is to look through websites specializing in helping small businesses. Recently I found a Huddlebuy review for a handy little e-book on alternative funding sources. It’s even free so it has to be worth at least what you pay for it and maybe considerably more.
Small businesses are renown for having cash flow problems which in many instances can kill potentially sound ideas. This is something of a tragedy at a time when traditional industries are shedding jobs and some research suggests that small enterprise has the potential to create half a million new vacancies.
The content of this particular book include some of the background on why banks won’t lent to small businesses and takes the reader through various other funding models which may prove more accessible or cheaper. These include peer to peer lending, business grants (which can be regional, national or in some cases EU funded). There’re even ideas on selling retail bonds (something I’d never heard of until I read the book) and short term loans for cash flow crisis points. I have to admit that I’d avoid the latter like the plague but there might be circumstances where they could save an otherwise doomed business.
Comments from other readers suggest that some people who ordered this e-book found the information contained to be basic, but if you’re starting from scratch basis is no bad thing! This is another great thing about the site, you can look through the deal review on Huddlebuy and find out how useful other customers have found the product. There’s lots of free stuff and other things are at discount or with free introductory period offers. The biggest danger I can see is that you could get so carried away with looking at all the stuff you can get to help your business that you’ll forget to get on with the work you need to do!