One of the biggest challenges faced by many entrepreneurs is the issue of adequately funding their businesses, especially when they first start out, but also when cash flow dries up for whatever reason.

Without adequate funds, companies can really struggle to keep going for long so it is really important that you are able to access business funding when you need it. Obviously, having a surplus of cash that you can access when you need to buy new materials or run an advertising campaign or whatever is the ideal that all companies should be working towards, but that isn’t always possible, so let’s take a look at some of the best alternative business funding options that you need to know about right now…

Peer-To-Peer Lending

Peer-to-peer lending is relatively new in the world of business funding, but it is fast becoming a popular option, particularly for small businesses. Basically, a peer-to-peer loan is a loan that is crowdsourced from a number of private individuals. Since each individual only lends you a small amount of your total loan amount, it is less risky for them, which means you are more likely to be approved for a loan in this way than you may be at the bank. That being said, most peer-to-peer lenders will still want to see that you have a solid business plan and a decent probability of paying the amount back on time and in full, and some will require shares or equity in your business in return for their funding, so you should never look at it as an easy option and approach the application as you would any other business loan

Term Loans

A term loan is particularly good for seasonal businesses like the agriculture business where you may need a quick injection of cash at certain busy times of the year. They are a great way to access the money you need when you need it most because they are typically fixed-term loans with a set interest rate and a very specific repayment schedule. If you know that you are going to be able to pay the money back on time because you are using it to cover you during a busy time, they can work out much cheaper than many other small business loans, but of course, you should always fo your due diligence and shop around for the best deals before you choose a specific loan of any kind.

Angel Investors

Angel investors are individuals who have a fair amount of personal wealth and who are willing to provide the business funding in return for shares in your business. Often they work alone, but it is not unusual for angel investors to form funding groups either.

One of the biggest advantages of using angel investors is that as well as providing you with the essential funding your business needs, they will often also offer up their own experience and knowledge of running successful businesses, which can be almost as valuable as the cash injection itself but do remember they will be looking to take part of your business as part of the deal.

Government Grants

Many entrepreneurs do not realize that there are actually a staggering amount of government grants and loans available to businesses of all shapes and sizes, even brand new ones. As you would imagine, the government wants to encourage as many people as possible to set up businesses and help to strengthen the economy, so they will often make pots of money available for various things from starting a new business to investing in new skills. So, if you need a quick cash injection, it is always worth having a look at what is available from the government in your area.

Crowdfunding

Crowdfunding sites like Kickstarter are great for budding businesses who are looking to get their product launched. If you have a great idea for a product, but you don’t have the means to produce it on a large scale. Simply pitch it to the audience and have them back it financially. This is not only a great way to get access to the funding you require, but it also serves as an excellent litmus test to show you whether or not your product actually has legs. If you don’t get many backers, it may be that your product is not viable at all, and you may have to go back to the drawing board, but if it is viable, then you should get enough money from your backers to move ahead to the next step.

Working Capital Loans

Companies like Paypal now offer working capital loans, which are typically lower value loans that you can access by going through a, usually, automated application process. They are usually approved instantly and that means they are perfect for those times when you just need a little quick cash to cover an unexpected bill or buy more materials when you have sudden surge in business. Even better, they usually have a fixed interest rate, so it’s really easy to see what you aere getitng yourself into and whether you will be able to pay the money back effectivekly, before you even apply.

Credit Cards

Credit cards are always an option when it comes to funding your business, but this is something you should probably only do if you have a good business credit card with a low -rate or a 0 percent rate on purchases for a specific period, otherwise, the interest rates will be too high. If you need to borrow money and you know that you can pay it back at the end of the month, before any interest accrues, it is probably safe to use your credit card in those circumstances too.

Microloans

Microloans are typically offered by non-profits who make small amounts of cash available to budding businesses who may need help to get off the ground. Since they are charities, you will typically need to meet a specific criteria in order to apply such as coming from a deprived area, but if you meet the criteria, it’s actually pretty easy to get these kinds of loans and the repayment terms are generally very reasonable too, so it is definitely something you might want to look into.

Venture Capitalists

Venture capitalists are people who will offer long-term investment in exchange for being granted equity in your business. Venture capitalists are almost exclusively very wealthy people, or consortiums of people, who will provide you with the funds you need without charging interest or requiring repayment – they invest in your business because they think it has potential and by having equity in it, they believe they can enrich themselves as well as you – think the people you see on Shark Tank or Dragon’s Den- and when it comes to business, they really do know their stuff,   so you do need to have a pretty solid business or a truly killer idea for them to even consider working with you, and the business plan/figures to match,  but if you do, they could be just the source of valuable investment that you have been looking for.

As you can see, there are lots of ways to access the business funding you need right now, that isn’t just going to see her bank manager and hoping for the best. If you are having a cash flow dilemma, it is definitely worth exploring all of your options to the fullest because you probably have many more options than you actually think!