Alternative financing for SMEs
We live in new times in every way, which means changes in companies, the economy and obtaining money.
La financing for SMEs, for example, depends less and less on banking entities.
In this sense, the so-called alternative financing is gaining presence exponentially. Do you know it?
What is alternative financing for companies?
at the time of getting financing for SMEs, banks have been the main reference.
However, this situation is changing.
In essence, alternative financing are economic resources that come from financial elements and instruments outside the banking circuit.
Some formulas of this alternative financing are very imaginative; Others anchor their origins in ancient traditions, like lifelong moneylenders.
Mainly, you will find two modalities:
1. Direct investment in the capital of the project to finance the business.
2. Alternatives that complement the traditional bank loan.
Main alternative financing options
When you think "I am looking for financing for my company» and the banks no longer suit you, the alternative financing for SMEs It opens many doors for you.
Specifically, these are the main modalities with which you can obtain financing for your business:
Mortgage loans from non-bank entities
Do they work like a mortgage, but outside the bank.
It is normally used to acquire real estate or obtain extraordinary economic resources.
Collateral is the property that is mortgaged.
Confirming
The financial entity pay your suppliers directly. In this way, you obtain working capital to relieve your treasury tensions.
Factoring
you give up the credit right one or more bills to the financial entity to collect them in advance of maturity.
This formula, in addition to granting you liquidity, allows you to stop worrying about monitoring the payment forecasts of your client portfolio.
Non-bank loans and microcredits
There are entities other than banks that carry out this work, often focused on start-ups and new businesses, offering flexible terms y adapted to the individual situation of each client.
Crowdfunding reward or crowdfunding
It consists of building shared financing networks through web platforms, where an indeterminate number of lenders make contributions until the necessary amount is covered.
In return, they receive a benefit that does not necessarily have to be financial.
Generally, it is based on small monetary contributions among many investors.
Equity crowdfunding
This type of financing is also focused on many investors with small amounts.
In exchange for their contributions, they receive a participation in the company or project.
If the idea is good, you will obtain the financing for the business sought.
Crowdlending
This formula of loan is shared by many small investors that make up a massive financing.
Interest and a return period are established, in which all of them will receive the consideration.
Venture capital or risk capital
Currently, there are groups of investors, individuals or companies, who are committed to business talent.
Above all, they focus on start-up companies (start-up) and promise, beforehand, good results.
After carefully analyzing each project, they contribute their money buying stakes in those launch phases and then they sell them when the project has prospered.
How to get these financial impulses?
It is not about slamming the banks and forgetting about them forever.
In fact, bank and alternative financing can and should coexist.
Among the benefits provided by alternative financing, we highlight two main characteristics:
- – Great speed. The operations online They ensure almost immediate management, simple procedures and urgent availability.
- – Maximum flexibility. These operations are much better suited to your needs. Both the amount, the term and the conditions are agreed in a personalized way, offering a suit tailored to the client.
Therefore, the Financing for SMEs and projects outside of banks It is a possibility that you should study.
Do not rule out this option, now that you know its characteristics.
The question you are possibly asking yourself now is:
How do I get this type of financing for my business?
Where should I go?
There are multiple alternative financing companies in the market.
At Workcapital we offer a wide range of services focused on financing working capital.
Expand this information by consulting Financing Companies:
