Where will you go when banks don’t offer loans anymore?

There are few people who are ready to make major purchases with their own assets alone. That is perfectly normal since that is what loans are for, aren’t they? However, what if you have tried applying for a loan, perhaps even more than once, but can’t seem to get the green light from your bank?

There could be several reasons why your bank refrains from lending you money, however, that does not mean that you have to forget about your monetary endeavour altogether. There are alternatives to bank loans that can give you what you need to start that business of yours or save it from bankruptcy. Here are a few places to look if you find that banks don’t offer you loans anymore.

First, find out the issue

We mentioned that there could be various reasons for your bank – or other lender – rejecting your application. Instead of rushing to apply again, take a moment to understand why your attempt did not go through and try to amend the issue for better chances of success the next time.

Your credit report is the first place to look. If there is room for improvement, you should consider consolidating your debt to reduce interest or pay off some smaller debts for a quick boost.

On the other hand, your finances may be in order and you might still get rejected. The fact of the matter is that banks are sometimes reluctant to accept small business loan applications due to a lack of faith in the idea. This is why alternative financing options have become a rather popular option in the business community. If your current projections are not exactly risk-free, try improving on them before reapplying.

Consider alternatives to bank loans

There is no one-size-fits-all solution when it comes to loans. Every business – or business idea – has its unique circumstances. Luckily, alternative financing options abound, so everyone can find a solution.

Merchant cash advances

Merchant cash advances are the perfect solutions for businesses that are already running but need a cash boost. This alternative financing option will give you a lump sum of money that you can pay back over time, with the addition of a certain fee. While this sounds much like a regular loan, what makes merchant cash advances different is the fact that you will be paying this back through your credit or debit card revenue gradually. If your business has been operating for over a year, you can utilize this method to improve your cash flow seamlessly.


The concept of crowdfunding is hardly new to anyone. However, it is only recently that this method of financing a business idea really gained a foothold. If you have a concept that can convince people to help you realize it, then crowdfunding can be a gateway to success. However, the issue with this method is more than obvious: if you cannot meet your goal, you will need to look for a different financing option.

Private lenders

Those who struggle with getting a bank loan often turn to private lenders instead. One of the biggest advantages of these loans is that there is little waiting time involved. You can apply online quickly and with little hassle. Private lenders offering business loans will review your application immediately and you will have the money you need in as little as 48 hours. Many offer flexible repayment terms, which is perfect for small businesses with unique needs.


When talking about small businesses, sometimes, a loan does not need to be stellar in order to make the difference between survival and bankruptcy. If you are in this position, too, then looking into microloans may be the way to go. As the name itself suggests, microloans are lower-value loans that you can obtain without presenting your credit score or placing down an asset. Microloans specifically offered to groups of people such as women or minorities can be of particular interest to you if you belong to any such groups.

Asset-based loans

Speaking of assets, if your credit score doesn’t grant you a loan but you have something to your name, then turning to asset-based loans is a viable alternative. If you have an asset that you can offer as collateral, you can get the cash you need this way. An asset does not necessarily have to be property; equipment and inventory are also an option for businesses that are in operation.

Equipment financing

Finally, quite the opposite of asset-based loans, if it is a piece of equipment that you need funds for, then equipment financing can provide you with the money you need for your investment. Granted specifically for purchasing equipment, this mode of financing uses the equipment you purchase as collateral. Since there is collateral involved, qualifying for this type of loan is less difficult.

These are not all of the alternative ways in which you can obtain funds for your business, however, they are some of the most popular ones among entrepreneurs. All of them have different advantages, so weigh your options before trying to apply again.

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