What are best alternative options of substantial funding for a SMB, other than the traditional bank debt?
Answers
There are many niche asset based lenders that can be used as an alternative to traditional bank debt. Also, some private equity firms are entering the debt market with some nice financial products. We have seen quite a bit of business in the non traditional loan space of late.
Agree with Jeff and also consider a Reg D debt or equity capital raise. The debt could be senior notes at $100K per note with some int rate and the equity could be $100K per unit with a preferred return and percent of company.
Good points Jeff and Joseph. Rose, you need to consider the stage of the Company and the past experience of the team. If this is very early stage and the founders have little prior experience in a start up, the most likely source of capital will be from personal savings, credit cards, friends and family. In today's world, there is little investor appetite for pre-product & pre-revenue start ups with an inexperienced
Good Luck!
Great ideas everyone- I also want to add that crowdsourcing has become a new way for start-ups and entrepreneaurs to raise funding. Crowdsoursing sites such as Kickstarter and many others have been proven effective over the past few years. There are rules to this though. The business must provide the crowds with either a product or something other than equity in return for the received funds. Good luck with your search for funding.