You’ve had a dream, a great business idea and you’ve planned and worked hard to get your concept to a state of reality. Or, perhaps you are looking for a way to expand your business. Then, the day comes to get your business funding and the bank turns you down. Shock, amazement, disappointment. It is obviously critical to get the funds to start your business and equally critical to have sufficient funds to sustain the business. According to Investopedia, “of the vast number of small businesses that fail each year, nearly half of the entrepreneurs state a lack of funding or working capital is to blame.”

But don’t despair, you have choices!

First, Consider Re-applying

  • Begin by checking your personal and business credit report. Make sure the report is accurate and examine the ways that you can improve it.
  • Make your business story more convincing. How is it distinctive? How will you sustain and grow it?
  • If you are already operational, identify ways to improve your cash flow.
  • Revise your business plan. Define how you are succeeding or will succeed.

Second, Explore Alternative Funding and Alternative Lending Sources

  • Self-funding may be the most accessible means of immediate funding. Is there cash available from current operations or savings to get started? Once you are underway, demonstrated success is the clearest clear path to gaining external funding.
  • Angel Investors represent a great means of alternative lending. Angel Investors typically work in small groups and carefully evaluate businesses in sectors that they study, or for concepts that they connect with.
  • Seek crowd funding, especially if your concept can strike a chord for local support and interest.
  • Raise funds from family and friends; perhaps the most immediate alternative lending source.
  • Find another bank lender who may be more liberal or generous in their funding review.

What’s next?

When you need outside help for working capital, Bear River Financial is your go-to source for alternative lending. The Bear River Financial team has experience with a variety of loan products and the skill to help you find the right financial tools you need: