The biggest challenge any new business faces is getting the funding they need to get started. Unfortunately, it is not easy to get insurances these days – especially if you lack good credit. However, there are some alternative options. You don’t necessarily have to apply for a traditional insurance from a bank or go through an SBA. There are many online lenders, for example, who offer a small business insurance for new businesses.
Micro insurances are a good example of an alternative financing solution. While these are usually reserved for nonprofits, some individuals who do not usually qualify for a conventional bank insurance may still be able to obtain financing from microlending institutions.
Another type of financing to look for is venture capitalists. These are like ‘angel investors’, because they have money to invest and they want to invest in up-and-coming businesses that can prove that they have high potential for cash returns and growth. They are also looking for a share of equity in return for their initial investment. Ventures investors at some point expect to make money from their investments, so they may want to get some control over how the company is run.
Is crowdfunding as good as a small business insurance for a new business?
You may have heard of crowdfunding, where startups can create a campaign to help raise money for their ideas and products. While this option can be beneficial, it is not at all easy to reach your financial goals in the period of time when you really need the money. You will really have to have a genius marketing plan that will attract a lot of attention from the people who have the money to give you.
There are many other independent organizations that offer small business insurances for new businesses. However, there should always be due diligence on your part because you want to be sure that you are dealing with a real and legitimate seller. There are obviously some scams out there, so you should make sure you sign up with a legitimate company.
Spend some time reading all the terms and conditions carefully. Ask for clarification if there is anything you do not understand. Make sure these terms and conditions are right for you and your business needs. Whatever lending source you take on should benefit you, not harm you.
Now that you know more about alternative lenders and online financing options, you may want to check out the American Business Fund. It has a very high small business insurance approval rate for new business endeavors.