You might have heard that many big businesses get millions of dollars in loans through banks and other big financial institutions. But, if you are a small business owner looking for getting good business loans, then you might have your expectations been crushed by now. Right now, you must be looking to apply for a small business loan to a bank with a decent interest, and collateral which you won’t make you lose your home over only if everything goes right. This is because you might think that banks are the only and best way of getting small business loans.

While this may have been a reality a few decades ago, this certainly is not a case now. While getting a bank loan is good, only if you are able to move past all of their bureaucracies and restrictions, and only then will you be somewhat happy by the end of the entire process, not realizing there are better ways than bank business loans today. Many of these were made to annihilate the tedious processes of banks entirely.

While banks have an unchanged archaic system of dealing with businesses, many of these ways are new and understand the dealings of businesses. Unlike banks, these alternative business loan methods will recognize the volatile nature of the business world. And to apply for a small business loan from these alternative financial institutions will not feel as if someone is breaking your back.

So, let’s challenge the monopoly of banks and look at some of the much better ways to apply for small business loans.

  •   Angel lenders: Angel lenders, as the name suggests, are much like angels to small business owners. These in many ways are the people who are successful businesses themselves. But they still finance small business owners because they believe in their ideas and want to make many new businesses dreams come true. If you manage to attract an angel financer, most of your financial problems will vanish in a one single swoop and you will always have a backer who can also help you get recognition and contacts through their own name. Some of the most famous examples of angel lenders are Facebook, when it financed Oculus Rift, and Elon Musk, who financed the company of Neuralink.

But the drawbacks of Angel lenders are that they are not enough successful business entrepreneurs that that let business owners apply for small business loans.  And the lack of their numbers mean that there are always going to be much more contenders for just one Angel Financer that you can imagine. Even if somehow, you do manage to get recognized by an Angel Financer, you will always be at their mercy. You will have to work with them and also give them your profits forever. And if somehow you disagree with them or fail to deliver what they ask of you, they can cut your funding any time.

  •   Crowd Sourcing: Crowd sourcing is the best way through which you can finance your business. This is literally a way of financing your business through the help of the masses. What you do is, you register yourself onto any of the hundreds of crowd sourcing websites that seem to be emerging over the past couple of years. And because of the rise of crypto-currency, it has become increasingly easier for people to get their financial needs covered with the help of crowdsourcing. All you have to do is put on your cause and proposal and a goal that you would like to set to raise enough money for your business. If enough people acknowledge and back it up, you will have all of your financial needs met, and the best part about is that you will never have to pay it back!

But just like everything else, even crowdsourcing has a couple of drawbacks. Crowdsourcing is a market which is in very much in infancy still. It has great potential to grow and sustain entire economies in the future,  but right now it should not be your only option of successfully apply for small business loans. Also, you will have to campaign day and night from the time you register for your cause.  And even after all the campaigning, there is no guarantee that those people who get to know about your goal will believe in it. The timeline for crowd source funding can be anywhere from a week to a couple of years!

  •    Mutual fund loans: While you can get loans from mutual funds themselves and you will also get much better interest rates than that of banks, you can also use your mutual fund money in exchange for bank loans. They are safer and the restrictions to apply for a small business loan through the mutual funds are bit less.

But, on the other hand, mutual fund loans come with a few backdrops. The mutual funds are even more volatile than businesses and you never know when they can go into losses. So, unless you are an expert in mutual fund investment, and trust your mutual fund completely, we suggest you do not try this alternative method of funding yourself.

  •    Merchant Cash Advance: Merchant Cash Advance is a way through which small businesses owners can apply for small business loans directly to independent lenders in an extremely fast, safe, and transparent way. The whole process can take place in a few days. You will get your money in a direct lump sum, just a few hours after you signing the contract. There is no collateral that is required, and even bad credit history is accepted. The payment method is quite simple, as your repayment will take place automatically through a pre-agreed upon a portion of your future credit cards sale.

You might be wondering about where the catch is, and the catch is that Merchant Cash Advance charges a bit higher interest than all other financing ways. And, since there are hundreds of MCA lenders on the internet, many of them are not legitimate. So, you have to be careful while applying for Merchant Cash Advance.

In our opinion, if you apply for a small business loan through Merchant Cash Advance, you will be able to reap the most benefits. But, it is completely up to you however you may wish to finance your business. All the best.