When your organization needs funding, it can be frustrating to get turned down for a loan by a bank. After all, you wouldn’t apply if you didn’t need the financing. However, if you are denied for a loan, there are other ways you can get the financing you need for your organization.
Bootstrapping is self-funding. This is a common way for entrepreneurs and new business owners to provide funding for their organizations. Bootstrapping may include putting your own money into the organization. It can also involve getting creative about how resources are used so that what financing you have available stretches further for your organization’s budget. Bootstrapping may make things difficult, but it can get you through until your organization is able to seek outside financing.
Angel investors are another way to get financing if you have been turned down by a bank for a loan. Angel investors are individuals who have money and want to use it to invest in small businesses. Quite often, angel investors want to get involved simply because they want to help new businesses, especially if it’s an area they are interested in or passionate about. A few angel investors can provide you the financing you need to take the next steps in your organization.
Crowdfunding is growing in popularity for small businesses and entrepreneurs. Many people turn to the public for small investments from a large number of people, usually in the form of donations. By allowing many people to provide small amounts of financing, you take the burden off a small number of people and still get the financing you need. Many organizations provide perks to those who provide this type of funding, especially when the organization provides products that can be sent to those who contribute.
If you’ve been turned down for a loan by a bank, it doesn’t mean that you can’t get the funding you need for your organization. Turning to alternative sources of financing, like bootstrapping, angel investing, and crowdfunding can help you continue moving forward toward your organizational goals.