It’s an unfortunate reality that growing your business requires a significant cash investment. Luckily, there are more funding options available than ever before. Friends, family, and crowdfunding sites are options, but might not be the right fit for your business. Private funding offers a non-bank lending solution with unique advantages for small business owners.

When access to capital can make or break a business, you want access to quick financing options. Private investors and alternative loans can offer quick capital to small business owners.

This funding isn’t without risks. Private loans have different interest rates, fees, and clauses than traditional bank loans. Always read and understand the aspects of your loan before agreeing to the terms.

However, the advantages may be worth the risks. Private lenders, such as angel investors, can have a significant interest in helping your small business succeed. They may offer invaluable mentorship along with their capital investment. If you are looking to receive private funds, here are a few tips to make that happen.

Networking is a great way to meet potential angel investors and venture capitalists. You don’t have to wait for the firms to reach out to you. Take the first step to make connections that could provide mentorship and funding options for your growing business.

Another source of private funding is alternative lenders. You can investigate these brokers for various loan options that aren’t offered by traditional banks. Some loan options offer quick access to cash with flexible repayment terms, such as a merchant cash advance. Close mentorship is not as common among these types of lenders.

Regardless of where your funding comes from, you’ll need to have a detailed financial plan. It can reassure potential investors to know that you have planned for financial goals and put safeguards in place.

Before agreeing to a private financing deal, It’s important to understand exactly what you and your business are on the hook for. The unique terms may include UCC-1 liens, personal guarantees, and other forms of collateral you are unfamiliar with. Make sure you are comfortable with all the terms of the agreement prior to signing.

The unique advantages that come with private funding sources can be invaluable to a small business owner. It’s important to find a funding partner that values your business and will keep the best interests of your business a priority. With a little research, you can have access to the funding needed to grow your business.