It has always been believed that the most important thing for a company to succeed is that it has a good idea, an idea that differentiates it and positions it above its competition. However, although it is obvious that the need for a good idea, it is also essential to obtain financing to be able to develop it and carry out the objectives set.
In addition to knowing how to ask for a loan, the same or more important is knowing where to do it. Until relatively recently it was believed that the only possibility to obtain financing was to go to a financial institution. What many do not know is the existence of other sources of private financing that we should know, alternative financing to the bank.
Where to ask for credits?
In recent years, mainly due to the economic crisis, financial institutions have become more stringent when granting loans to companies, which has led them to seek financing through other financial alternatives.
Request credits from own funds
It is one of the two major sources of financing (along with external financing). Own funds are the most stable sources of financing that a company can count on, since they have no maturity. These are composed of capital and reserves. Therefore, when one or more capital increases are made, the company's own funds will be increasing. This type of financing available to the company to develop its activity speeds up the achievement of objectives and saves time and money, since there are no interest or repayment terms.
Request credits from people around us: “Family and Friends”
In this case we would already be in the second largest financing group: external sources of financing. Here we must go to borrow or borrow money from people we trust, which can help finance our projects with greater flexibility and less difficulty. In many cases, the interest rate is zero or close to zero, always depending on the agreement established between both parties.
Request grants or subsidies from public bodies
Despite being a source of external financing, which usually has a very low interest rate, it has the disadvantage of the large amount of documentation that must be submitted for granting. There are, above all, many platforms that support business initiatives through grants and subsidies, so if you are an entrepreneur and you are thinking of requesting loans from financial institutions, you should always consider this option.
Alternative platforms where to request credits
There are many companies that have emerged as alternatives to traditional financing led by bank loans and credits. Among them, we highlight two types of financial alternatives:
- Crowdfunding: it is a financing modality consisting of the donations of individuals to finance projects in exchange for different rewards. Within this type of financing we are in broad strokes with two subcategories: donation crowdfunding and reward crowdfunding. In this case, the projects that are usually funded, have a great cultural and social character (in the case of donation projects), and have a great degree of innovation when they are funded through reward crowdfunding.
- Crowdlending : although it is another of the crowdfunding modalities, we separate it into another large group due to the great importance and the rapid growth it is suffering. This method of crowdfunding consists in the realization of loans by individuals to companies that need financing to carry out their projects in exchange for an interest rate. Therefore, companies with financing needs can request or request credits and loans through participatory financing platforms such as Good Finance, which will be in charge of contacting both parties: investors and companies with financial needs.