When the bank says no, don’t freak out! Business owners have to think strategically when they seek funding. That means rethinking your plans when banks reject them. Pretend that funding is almost like a game and soon, you’ll find the money you need.
The following are critical things to do before looking for more funding, whether it is at a bank or another source. They are based on making your business become a better candidate for funding.
-Review your credit history: Take a good look at your report and score and think about what you can do in the next few months to improve it.
-If you have a lot of overdue payments from vendors and clients, collect them so you can run your business efficiently without worrying about cash flow. Late payers affect your ability to pay for things, which affects your credit.
- Make reminders so you don’t make late payments. Consider auto-pay for bills so you don’t even have to think about paying things on time. Late payments can hurt you credit and make you look like a big risk.
-Contact the credit bureaus to correct mistakes. One or two pieces of wrong information could be derailing our credit history. Fix them by providing proof of any errors to the bureaus.
These actions are best for those who are fed up with banks and want to use alternative financing options. You never know what you find if you aggressively seek out different forms of funding. You can still check on your credit history before going this route, but these financing alternatives may be more accessible than banks.
-Business Finance Store offers lines of credit and loans to entrepreneurs. These are extremely common forms of funding, according to Entrepreneur. Business Finance Store has helped entrepreneurs achieve their dreams with a variety of solutions, including lines of credit and revenue loans. An agent can provide more information.
-Private investors can help your business, too. The amounts they can invest can vary depending on the person, but having a strong business plan will help. Vary the investment levels to get more interest from a variety of people. So, if you were going to ask the bank for a certain amount, try dividing that amount into smaller pieces to get investors interested.
-Crowdfunding involves getting a large amount of small investors through a fun campaign. It could be great for businesses that run a campaign with a variety of awards at different funding levels. Create a campaign with a strong emotional appeal for your potential supporters. For many companies, the rewards they offer can make people feel they are getting something tangible out of the deal. No need to post your entire business plan, most supporters will be happy with a summary of your current and future business plans.
Banks are not the end-all, be-all of financing. The best thing about being rejected by a bank is it forces you to be creative with funding and take positive steps to improve your financial health. If you put these strategies to work, you could end up with even more funding than you thought possible.