Obtaining a traditional loan from a bank is not always feasible. It is crucial to consider alternative options for getting the cash you need. Fortunately, there are multiple unique ways to obtain cash. For example, you can sell your accounts receivable to a third party at a discounted rate which is called factoring. Here are some options to consider.

One option to consider is borrowing money from other projects. If you need cash for a certain project and have plenty for another, it may be advantageous to reallocate your resources and borrow money.  For example, by reducing the amount of money you spend on marketing one month, you can have more cash for the project that needs it. A crucial benefit to going this route is that it eliminates the need to deal with interest payments by avoiding credit. The down side is that certain aspects or projects will have less money to work with. Borrowing money from yourself is another option if you can afford to invest in your business. Even though this route involves no interest payments and can be a simple way to attain money, it goes against the purpose of managing a business. Instead of putting money into your personal account, you are removing money from it.

You can also utilize factoring which deals with selling accounts receivable to a third party and transferring the rights to collect to a finance organization. Keep in mind, the rates for this form of financing can be high and it may impact your relationship with customers. If a factoring company does not treat your customers well it may damage your own image. Despite these obstacles, it is a great way to generate liquidity and if you suffer from bad credit history it can be a viable alternative to a traditional bank loan.

If you need immediate cash, a small business loan may be your best option. They are flexible and eliminate the need to spend less on other parts of your business. Additionally, small business loans are often easier to obtain than traditional loans. Going this route does involve dealing with interest.

If you need cash, there are unique alternatives to obtaining a traditional business loan to take advantage of. If you want to avoid dealing with interest, it can be wise to borrow money from another project or even borrow money from yourself. To generate liquidity, you can take advantage of factoring and sell your accounts receivable to an outside finance organization. Another alternative is to obtain a small business loan.