The credit crunch has hit some small businesses very hard and with banks not lending many are at a loss of where to get needed funds. Don’t fret there are money sources beyond banks even if you rarely hear of them. Which source is best for any particular business depends on why the money is needed.
If the business is looking to buy equipment it is often best to try to get the equipment dealer or manufacturer to finance the purchase. Not all companies have this option in place but always ask because it can often be much cheaper than borrowing from another source.
Credit cards can be another option. However before you run out and charge a “high ticket” item (like a piece of equipment) you will want to call around and get the best locked in interest rate you can find. Yes, I am telling you to shop for credit cards. I know that may seem a little crazy but calling that 800 number on the back of your cards and haggling to get a lower rate can save you hundreds of dollars in interest. Play one card against the others and make sure the rate you are quoted is locked in for a long period of time. A low initial interest rate is not what you are looking for you want at least 12 months guaranteed at the rate you are given.
Private lenders are another possibility. Private lenders are not to be compared with loan sharks. These individuals have money they are willing to lend to others at a higher interest rate than they can get putting the money into the bank. They are willing to accept a bit more risk in order to get a higher rate of return.
If you need money and have a good reason for needing it, there is always a way to get funds.