No Thanks, Banks: Alternatives to Small Business Loans

Business.com / Funding / Last Modified: February 22, 2017

So you want to turn your business dream into reality but your business loan applications were rejected by the big banks. Now what?

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We've all seen Shark Tank and dreamt of landing an investment offer from one of the sharks, but chances are that you won't get that option. Most of us have to find other ways to get our small business funded and it's one of the biggest obstacles that entrepreneurs face when trying to translate their business dream into reality.

Traditional bank loans are the most obvious method of financing your endeavor; but before you get your heart set on getting one, consider this fact: more than 82% of small business loan applications are denied by big banks. This is due to the saturation of SMBs and the high risk of smaller ventures. Big banks have set strict requirements that can make it as challenging as climbing Mt. Everest for small businesses to qualify for traditional bank loans. 

So what now? How will you be able to fund your small business to get it up and running? According to The Lending Club, a peer-to-peer lending service, total P2P loans funded for small businesses grew from about $850,000 in 2007 to over $22 million in 2012. P2P funding has become increasingly popular over the years and is just one of the many options to get your business funded if you aren't able to get a traditional bank loan (it's also a less expensive option as well). 

Related Article: Bootstrap Your Small Business with These 5 Alternative Funding Methods

Acquiring funding is one of the toughest parts of starting a business, and definitely the most stressful. But you're not alone—there are a vast abundance of entrepreneurs struggling with the same problem. Luckily, there are also plenty of different ways to get your business funded and to help, we've created this free whitepaper just for you! 

Download our free "Financing Options for Your Small Business" guide to learn everything you need to know about alternative funding methods to get your small business on its feet.

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