Many small-business owners want to expand their organization’s reach, but that’s often difficult with the restricted financing available through traditional means. Any expansion plan is a costly endeavor, and includes the need for more small business insurance to protect the new investment. The economy has been on the rebound throughout 2014, and that momentum is likely to continue into the new year. With that in mind, small-business owners may want to consider alternative lending options for business expansion.
Alternative loans can come from a variety of sources outside the traditional bank structure. Generally they are provided through the donations of other individuals, such as family members or other individuals who want to help a small-business owner. While this type of transaction has existed for a long time, it will be much easier for people to contribute to business owners in 2015.
The number of services that allow peer-to-peer lending has skyrocketed over the past year, and several of the organizations have recently become publicly traded. Some of these companies were specifically founded to provide alternative lending options, such as Lending Club or OnDeck Capital, CNN Money reported. They will be competing against established payment services, such as Square and PayPal, that NerdWallet reported are entering the lending space.
With such a wide variety of companies providing ways for small businesses to secure capital, 2015 should see many small organizations realize their expansion plans.
