Posted by Charles Brady on 26 August 2012
Money lending. Those words seem to have become dirty words these days, at least to bankers, venture capitalists and our favorite grandmothers with the deep purses and great sweet potato pie. Although Granny will still happily dish up a serving of her homemade pie, she is much more hesitant to loosen the clasp on the burlap purse.
Banks now require applicants to run 40-yard dashes in the parking lot in addition to providing DNA samples as part of the loan application process and venture capitalists are not returning calls at all these days. So where has all the money gone? When will it be back? Why did it leave in the first place?
The answers to those questions are many and complex. What is clear is that the days of the dot-com gold rush and no-doc loans are light years behind us. Once again, it is a brave new world; and it looks a whole lot like the old world. Which begs the question: exactly how did people get money to turn million-dollar ideas into million-dollar enterprises before money started growing on trees? According to the scrolls of the ancients, the method of choice for capital infusion were stone-aged financial products called "conventional loans." However, with many lending institutions now blowing the dust off their Rigid Guide to Stingy Money Lending, and with many consumers taking credit-score hits during the economic slowdown, conventional loans are simply not an option for many entrepreneurs, causing many to put their investment or business ideas on hold.
Instead of holding your breath for the return of better days at some indeterminate point in time (which is an option), take note that there are still a number of creative and non-traditional ways to obtain investment capital that are sound, reliable and completely above-board. Man, if not most, are unaware that these options are available. These options may or may not be right for you, but the important part is that you realize that these avenues exist and are available to the average business person and entrepreneur.
Discussed below are a few favorites, but you should realize that many other non-traditional options exist. As is always the case, prior to doing business with any of the companies outlined below, you should conduct a thorough and careful review of each company to ensure that you are comfortable with the company and transaction and that the transaction is right for you and your venture.
If traditional lending is not an option for you, one or more of the following companies (listed in no particular order) may be able to provide the solution that you need.
1. PROSPER MARKETPLACE (Peer lending)
Company Website
Prosper Marketplace, Inc. www.prosper.com
Synopsis
Prosper Marketplace offers a number of financial investing and lending products, via its innovative peer-to-peer lending system. Prosper's peer-to-peer lending product is one of the most unique financial lending vehicles in the market today, whereby investors bid on the right to grant lenders fixed-rate loans of specified amounts. The peer-to-peer loans have a turnaround of about seven (7) days. Generally requires a credit score of 640+.
2. THINKCASH (Short-term cash infusion)
Company Website
ThinkCash www.thinkcash.com
Synopsis
ThinkCash works with the First Bank of Delaware to provide small, short-term loans from $250 to $2,500 to individuals. ThinkCash offers loans at flexible loan costs depending on credit score, and are open to individuals with "poor credit."
3. CREDIT (Financial sourcing site)
Company Website
Credit.com, Inc. www.credit.com
Synopsis
Credit.com, Inc. offers a wide variety of information and sources to various credit services and products, including free credit reports and credit scores, credit monitoring, credit and prepaid cards (with options for no-credit to excellent-credit applicants) and a wide assortment of loan products, counseling, advisement, etc. An excellent resource for one-stop shoppers looking for to satisfy a number of financial needs.
4. CREDITCARDS (Credit card hub)
Company Website
CCRD Operating Company, Inc. www.creditcards.com
Synopsis
CCRD Operating Company, Inc. provides a hub site for a wide spectrum of credit card needs at www.creditcards.com. As the name suggests, the Web Site includes information, products and services on virtually everything credit card. The Site offers products from low interest and instant-approval credit cards to credit card search solutions for bad credit and bank/issuer specific demands. A strong resource for credit card applicants with varying degrees of credit history.
5. NEWHORIZON (Nationwide Good and Bad Credit Lending)
Company Website
Newhorizon Business Services Inc. www.newhorizon.org
Synopsis
Newhorizon Business Services Inc. are business consultants that provide financing for businesses nationwide, including loan and credit card programs for good and bad credit applicants. Newhorizon works with a number of SBA lenders to obtain SBA loans for successful applicants and maintains contacts with financing companies, leasing companies, and banks to provide unsecured signature loans, equipment leases, factoring and purchase order financing for businesses.
