Options to consider when trying to get a business loan
1. Keep track of the reasons why you’ve been turned down, and don’t be afraid to discuss them. This is very valuable and time-saving information! I always ask my borrowers where they’ve applied before and what the specific reasons were for the rejection. This way, I can quickly assess other strategies and ask questions of the borrower that will guide us to the right solution.
2. Be willing to brainstorm with your lender or broker. If things aren’t what you expected, ask what other options there might be. Also, don’t be afraid to ask them if they know someone else who might be able to help.
3. Take stock of your other assets. There are lenders out there who will loan against many different types of assets such as merchant accounts, future cash flow, marketable securities, financial instruments, real estate, insurance settlements, and factoring receivables. For some of these options, credit and business history will not be a factor in qualifying for a loan.
4. If you are publicly reporting or publicly traded, or pink-sheeted there are investors who may buy large blocks of stock to help move the company forward. It’s important to investigate to make sure they are not interested in “pump and dump”, but have a real interest in seeing your company succeed.
5. Venture Capital or JV could be the right choice for you, especially if you are expanding or just starting up. Angel investors are sometimes available for the right start-up company that is to their liking, while JV partners are interested in situations that share and mitigate risk with the right financial reward.
6. Network in the business social networks such as LinkedIn, GoBigNetwork, then expand contacts out through Skype or Plaxo to keep in touch. Join as many relevant groups in those networks as you can so you connect up and grow your sphere of influence.