ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Finding Business Funding is a Blistering Hot Topic

Updated on August 25, 2015

If you want to talk about hot topics then talk about business funding. That’s a topic that keeps bubbling up and over the rim of the money pot because credit seems to be so tight. The NFIB (National Federation of Independent Business) reports that    SBA 7(a) loans, which are government backed, have declined significantly in the last few years. As a matter of fact, the number of businesses able to get credit dropped to 41% last year. Sixteen percent (16%) of businesses didn’t get any credit.

 

The question is how did so many businesses continue to startup and/or expand operations in 2010? The answer of course is that they did get credit but not from the standard financing market that includes large banks and commercial lenders. The business funding came from other sources like equity partners or angel investors. The good news is that there is a large untapped pool of money still waiting for the right business idea, but you have to know how to find it and ask for it.

 

Getting More Efficient

 

One of the features any financial market needs in order to operate efficiently is that lenders and borrowers must be able to match up. Yet even in our large economy there are inefficiencies that prevent the optimal number of match-ups from occurring. That’s exactly why there is a private funding financial market that fills the void left by inefficiencies. Making it even more efficient is the fact the borrowers can access central locations and get professional help finding a variety of lenders instead of applying for funding one by one.

                     

Did you know that 64% of new jobs during the last 15 years were created by small businesses and not large corporations? That is remarkable and has to make you ask why banks would limit credit to the very companies and entrepreneurs that can make the economy grow. It reminds you of the old saying about cutting your own nose off to spite your face. Yet there are trillions of idle dollars held by banks and corporations that are only serving to plug holes in balance sheets.

 

These financial conditions create the perfect environment for private lenders. These lenders can provide capital to businesses quickly and efficiently. There is money available for venture capital, business loans and even startup funding which is generally considered a riskier investment. Both lenders and businesses are able to efficiently achieve their goals.

 

The private lending market offers more financing options too so it’s possible to custom tailor the funding based on need. Since the traditional commercial funders have decided to not offer credit, the free enterprise system had to find other options.  That’s why you can now find a thriving financial market that includes money for startup funding, business expansion, inventories, working capital and venture capital.  There are also angel investors willing to make business loans and equity partners willing to accept part ownership in exchange for funding.

Are You Telling Yourself ‘Doing’?

A question frequently asked goes like this: if alternative funding is available then why aren’t businesses accessing it? The answer is that too many borrowers believe they are not eligible for alternative funding options or lack information about the availability of private lending markets.

  • Don’t know what type of investors are available
  • Don’t know how to go about developing a business plan
  • Don’t know how much money is available and underestimates opportunities
  • Don’t want to be discouraged again by a negative response to credit requests
  • Don’t want to pay excessive loan origination fees and exorbitant interest rates

Too many businesses and entrepreneurs get discouraged after trying to find funding and getting turned down several times. The thought of applying for venture capital or searching for equity partners is overwhelming. It’s great to tell people they have to be determined but at some point the answer must be “yes.”

Using a central marketplace for bringing lenders and borrowers together makes perfect sense. This is an ideal market that is cost effective and efficient. You don’t waste money travelling from bank to bank to bank only to get turned away. The lender can find eligible borrowers with ease. It’s a good setup for everyone involved and is good for the economy too.

http://www.funded.com.Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need to access a vast network of business people, entrepreneurs, partners and service providers to help you start, finance and run your business, check it out

This hub brought to you....


by Julie-Ann Amos, professional writer, and owner of international writing agency www.ExquisiteWriting.com

Why not create your own HubPages? It's fun and you can make revenue from Adsense and other revenue streams on your pages. JOIN HUBPAGES NOW

This work is licenced under the Creative Commons Attribution-Non-Commercial-No Derivative Works 3.0 Unported License. To view a copy of this licence, visit http://creativecommons.org/licenses/by-nc-nd/3.0/ or send a letter to CreativeCommons, 171 Second Street, Suite 300, San Francisco, California94105, USA.


Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)