If a bank loan isn’t the right path for your company, here are some financing alternatives to consider:
MicroVentures: Securities brokerage
Started: January 2011.
Funding range: $150,000 to $500,000.
Rate: 10 percent.
Good fit for:
Early- to mid-stage firms specializing in mobile, social and green technology (plans to expand to financial and professional services firms).
Process: The MicroVentures team reviews and publishes approved funding requests online for consideration by its roughly 2,100 member investors, who can then invest between $1,000 and $30,000 in exchange for equity in those companies.
Others: Funding Store, CapLinked.
Pawngo: Online pawning
Started: August 2009.
Funding range: $10,000 to $100,000.
Rates: 3 percent to 6 percent.
Good fit for: Small-business owners who need to fill a cash-flow gap or make an urgent repair or investment in their business.
Process: Business owners can secure short-term loan against their assets (anything from jewelry collections to antiques to gold coins) to be repaid within six months.
Kabbage: Cash advance
Started: October 2010.
Funding range: $500 to $40,000.
Rates: 2 percent to 18 percent.
Good fit for: Small businesses that sell goods on Web-based marketplaces such as eBay and Amazon.
Process: Kabbage analyzes data concerning sales, inventory and social engagement to offer businesses cash advances against their sales, which are repaid within six months.
Others: Merchant Capital Access.
RocketHub: Rewards-based crowdfunding
Started: February 2010.
Funding range: $2,000 to $25,000.
Rates: 4 percent to 8 percent.
Good fit for: Young companies with exciting or exclusive rewards at their disposal and a strong social presence online.
Process: RocketHub members contribute various levels of funding to projects and companies in exchange for goods or experiences.
Others: Kickstarter, IndieGoGo, Crowdfunder.
Know of others? Did another service work for your company? Please share your funding recommendations in the comments below.
Follow On Small Business and J.D. Harrison