Ready to Raise Capital for Your Small Business?
Raising capital for any small business can be a challenge. While some businesses are able to find equity investment from an angel investor or venture capitalist, most entrepreneurs raising capital for small business rely on borrowed money to fuel growth or fund other business initiatives.
Fortunately, there are more options available today for small business owners looking for a small business loan than ever before. To find the right loan for your business, you need to honestly evaluate your situation and be willing to look in different places than you might have 10 years ago.
Using A Business Loan to Raise Capital for Small Business
It can be difficult for small businesses to raise capital—particularly from traditional sources of financing like the local bank. It can feel nearly impossible to secure a bank loan with a personal credit score below 680, and other traditional sources of small business financing like the SBA have a minimum threshold for personal credit of 650. Nevertheless, there is financing available online from lenders that are willing to work with business owners with imperfect personal credit histories—provided there are other business metrics that demonstrate you have a healthy business.
Is Your Personal Credit Score the Best Way to Evaluate the Health of Your Business?
Your personal credit history is one way many lenders evaluate your business’ creditworthiness, but we don’t believe it’s the best, or only way. At OnDeck, we look at your personal credit score and your business credit profile along with dozens of other data points to evaluate the health of your business. Daily, weekly, and monthly cash flow, annual revenue, and other data points can come into play. We want to lend to healthy businesses, which sometimes might include a business owner with a less-than-perfect personal credit score. Looking at you and your business this way allows us to say “Yes” a lot more than they do at the bank—and, since we opened our doors in 2007, it’s helped us deliver more than $10 billion to small business owners just like you.
What type of loan makes sense for your business?
Financing options to help you grow your business
If you’ve ever heard the adage, “It takes money to make money,” you must be a small business owner. Fortunately, there are more small business loan options available today than ever before—you just need to know where to look and what to look for. You don’t need to be a financing expert to build a successful business, but you do need to consider all the business loan options available to determine which one is best to meet your business need.
Small Business Loans and Lines of Credit
With online lenders and lines of credit, there are more options available today than a traditional term loan from the bank when you need extra capital to fuel growth or fund other business initiatives.
Loans with a Purpose
Depending upon why you’re borrowing (your loan purpose), there could be an option custom fit to meet your business need. Here are some of the financing options available with specific use cases in mind.
Non-Traditional Financing Options
Sometimes it takes a different approach to meet a business’ financing needs. There are a number of options from micro-loans to funding sources that won’t even be described as a small business loan.