Everyday there are business out there seeking bank funding. The owners put all of their effort into putting together financials and business plans trying to get the funding that they so badly deserve. The prospective borrowers have their sights set high and they feel that their so close to this funding they already began to make plans for how they are going to spend it. As the banker comes out of their office to greet the business owner in the lobby, the owner begins to get nervous. The banker brings the owner back to the office and they sit down. The owner starts to wonder if they have gotten approved or declined for the loan they so badly need. The banker begins to do a little small talk and then he lays it on them.
“I’m sorry but unfortunately we cannot entertain your funding request at this time.”
That’s right the big decline. All of the owner’s plans are out of the window. In many cases the owner just walks away defeated or they go to another bank only to get the same response. What can be done? This is a huge question that goes through an entrepreneurs mind, when they are delcined.
Well there is something that owner can do to fund their project. And that something is alternative financing. When the banks like to say “NO”, the alternative lenders like to say “Yes”. Alternative lending does not necessarily mean exceptionally high interest rates either. The rates through alternative lending could be very competitive, and it could be just what the doctor ordered. Just because the bank says no, does not mean that is the final answer. Alternative sources of funding are out there. You just have to know where to look.