Whats good wealthbuilderz
its yah boy DeVaughn back again with another
video and today we are talking about the top 3 ways to get a business loan without a bank
Okay make sure hit that like button and subscribe to the channel. We talk about making more money
saving more money and building a better you so with that being said lets talk about the topic on hand
3 Ways to get a business loan without a bank.
The reason for this video and blog is because i know for a fact that entrepreneurs are struggling to get SBA loans because of how strict it is to get access to those loans.
So I figured I’d give you some ideas on how to get a business loan or business funding without using a bank.
- Unsecured Financing
There are two forms of unsecured financing Its Credit Cards and Credit lines.
These are two different options even though they sound like the same thing. With credit cards you will
pay a higher fee to take cash out than with credit lines. But you will also get a much lower “intro” rate with cards that you won’t get with credit lines. And with almost all credit lines, you’ll need to show tax returns for approval, meaning they don’t work well for startups.
The best option in this case is to look for lenders that deal with UBF Unsecured Business Funding.
You will most likely be able to get 5 times the amount of credit using a UBF Lender.
A UBF Lender knows the business credit world way better then you. With the right UBF lender you will probably get better rates and higher limits on your cards instead of you doing it yourself.
Using UBF you can usually get five cards that mimic your highest limit revolving account reporting on your credit now. So if you have a $10,000 credit limit account now on a credit card, the lender will usually get you up to five other $10,000 limit cards totaling $50,000.
These cards help you build your business credit as well as get you money, another thing that’s a BIG deal. It’s actually huge because as these accounts report you are building a business credit profile for your EIN that’s not linked to your SSN. And you are building this profile with high limit cash cards. This means within a few months you can then use your newly established business credit profile to get even more, high limit cards. These new cards will come with no personal guarantee or liability from you, and won’t even require a personal credit check saving you from the consumer credit inquiry.
- Asset Based financing
Basically this is putting up your house or physical possessions for collateral if you should ever default on the loan. Common BUSINESS collateral might include account receivables, inventory, and equipment.
With account receivable financing you can secure up to 80% of receivables within 24 hours of approval. You must be in business for at least one year and receivables must be from another business. Rates are commonly 1.25- 2%
- Equity financing and Crowdfunding
Equity financing is basically selling a portion of your company for money this has nothing to do with credit at all but most investors are going to want to invest in a proven concept.
There are lots of websites in which you can obtain crowdfunding for your business. This type of funding gathers money from a “crowd”, or a lot of people instead of one big investor. If the crowd likes your idea, they may donate money to your project. Much of crowdfunding doesn’t need to be paid back and many investors are people you know. But if you really look into crowdfunding, you’ll find there are all types available.
Some types of crowdfunding sources do want a certain percentage of return; some want a percent of equity ownership. And there are different sources and platforms for different needs, and even unique niches or industries. So make sure you find the right crowdfunding platform for you before you post a project.
