Why raising capital through business lending is a must to create financial freedom and wealth?

Hint: Big banks aren’t the only way to raise funds

When we start any business, we shall always seek a great relationship with our local banker. When we need a loan, we could get a meeting, sit down, and plead our case. We knew his name, and he knew ours.How to raise capital through business lending using this blueprint below and resources.

He also knew that we were more than just numbers on a paper. On a few occasions we were actually able to convince him to lend to us in good faith, even when the numbers seemed a little riskier than the bank was looking for.

Today, we would be hard pressed to find a banking relationship like that. The 2008 recession wiped out a number of community banks, and larger banks don’t lend to the little guys like the smaller banks used to.

So, if we are looking to get into investing or want to start your own business, the prospect of getting capital can seem a bit overwhelming if you’re only focused on institution-based financing. But don’t let that deter us from your goal, as there’s never been a better time to pursue entrepreneurship — especially if we have the key to success in business: an entrepreneurial spirit.

How to raise capital for business

The good news is there are plenty of ways to get funding that don’t require working in the banking system. Today, the alternative marketplace-based lending systems (also known as peer-to-peer lending) are a powerhouse industry —and it’s a solution that can fit anyone’s needs.

Ready to find out how to find capital? Let’s explore six market leaders that you should be aware of and are worth your consideration if we are looking for an injection of capital for our next entrepreneurial endeavor.

Kabbage works like a line of credit. By setting up an account on Kabbage, we can qualify for a line of credit in minutes up to $250,000. We can then draw on that line of credit as needed for various investments. We pay only for what we utilize, and the fee system is pretty straightforward:

Here’s how it works:

Square Capital

Square is known for its suite of POS (point of sale) tools for business owners. If we are a Square merchant, you can qualify for a quick loan of cash that is as easy as pressing a button in the app.

Kabbage

Kabbage works like a line of credit. By setting up an account on Kabbage, we can qualify for a line of credit in minutes up to $250,000. We can then draw on that line of credit as needed for various investments. We pay only for what we utilize, and the fee system is pretty straightforward.

OnDeck

OnDeck says its 100 percent committed to small business lending. And they put their money where their mouth is, having delivered over $13 billion in loans to small businesses while maintaining an A+ Rating with the Better Business Bureau.

Here's what we can expect:

The offer term loans from $5,000-$50,000 with rates as low as 11.89% APR. You’ll pay a set amount for a fixed amount of time. The term lengths are 3 to 36 months and, since they report payments to bureaus, our on-time payments will help build our business credit.

Alternatively, we can choose a line of credit and pay only what we borrowing from this flexible plan — between $6,000 and $100,000. The term length is 12 months, and there’s no penalty fee for prepayment. Once you’ve repaid what we borrowed, we have access to our full credit limit again.

No personal or business collateral is necessary.

LendingClub

LendingClub is a peer-to-peer lending system, allowing individuals to pool their money to invest in opportunities. So, we can both lend money or apply for a loan. More than $50 billion has been borrowed by 3 million customers.

Funding Circle

Funding Circle’s website claims it’s the “world’s leading platform for small business lending” and has raised approximately $700 million since 2010. It’s 100% focused on small businesses, helping them cover upfront costs, tackle emergencies, consolidate business debt and grow their businesses.

Kickstarter

We have probably already heard of this one, but it’s still worth mentioning. Kickstarter is a crowdfunding platform that helps entrepreneurs and inventors launch products — its mission is to “help bring creative projects to life.” Unlike the others on this list, this platform caters more to those who have a great idea but need the money to get started from nothing.

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