5 Unusual Ways You Can Borrow Money for Your Business
Bangalore: Starting your own business and making it a success is the most challenging thing to do. The most important aspect that is necessary for starting a business is funding. People who are financially stable may invest their savings into their business, but individuals who are not financially backed have to look for alternatives.
We all are aware of the facts that, conventional lenders like banks will take months to sanction loan which will again depend upon on different factors like verification of the persons identification , his earlier bank history and others.
People who are in the immediate need of money are forced to look for alternative lenders to obtain financing. This unconventional money lending method is the oldest method and is present from a long time, but in the recent year, these unconventional lenders have grown to great popularity.
Investopedia has listed out 5 unconventional ways that people can borrow money for their business and about their advantages and disadvantages.
1. Credit Card Lenders
If you have a good credit score, you can easily and instantly take cash to start a business. Financing through credit card is usually depended upon the borrower’s capacity to earn and repay the loan.
Credit card financing comes with its own dangers and drawbacks. For instance, if you have delayed payment on utility bills, it will negatively affect your credit card rate and above all you will be charged with higher penalties that will affect your business and your financial status as well.