Here’s a common scenario. You’re ready to open your own business. You’ve done your homework. You wait for their decision. You’ve been rejected. Your vision of being your own boss has been quashed. Or has it? In today’s tumultuous economy, many others have been in your situation. Now, it’s time to get creative. Luckily, there are many other ways to get business funding that don’t involve the banks. Your future business can utilize tools such as commercial real estate financing, equipment leasing or unsecured business lines of credit, so that your dream of owning your own business can become a reality.
Commercial Real Estate Financing
One of the biggest parts of a business’ expenses is retail rent. Without upfront business funding, signing a commercial lease for your future location is next to impossible. The good news is that there are alternatives to a lease for you. Consider financing your commercial real estate property directly with a lender. Similar to a mortgage on a residence, a commercial real estate loan allows an entrepreneur to finance the location of his or her company. Making payments on the property is similar to a home mortgage. Your business won’t have to worry about a landlord raising the rent or issues that pop up as a renter. If your organization needs to relocate, you can work with a commercial property realtor to get the best price for your location or lease the property out to another venture, all while making a profit from the proceeds.
Equipment Leasing
The next big part of business funding is buying any specialized equipment. Many organizations try to save money by buying used machines, but that can lead to even higher repair costs. An alternative to purchasing new equipment is to try equipment leasing. Leasing equipment allows your organization to outfit your location with all needed devices, without fronting all of the cost for them. This gives your company access to new gear, and when your lease ends, your company can either purchase the equipment or select newer, more up-to-date items as your business grows.
Unsecured Business Line of Credit
Many times bank loans are declined due to lack of collateral. Owners who are in this situation may consider an unsecured business line of credit. This capital option doesn’t require collateral, so processing time is not only easy, but also fast. For financiers who need some working cash upon opening, this is a viable alternative.
Don’t give up if your business financing plans don’t include conventional banks. Commercial real estate financing, equipment leasing or an unsecured business line of credit can help your business ownership goals materialize.