Sources of fresh capital – other than banks!

Given the recent Royal Commission into the banking sector and their lending practices, using banks, as a primary source of funding and capital, may indeed become a challenge for some businesses.

In the wash up post the Royal Commission, as part of their reconstruction, it’s highly likely banks will tighten up lending practices.

For businesses that rely on fresh funding to fuel their ideas and growth, other financing options will need to be considered if they are to survive.

While bank loans and lines of credit have been the default option for many businesses, there are other avenues to explore – however, not all will be applicable – it will depend very much on; the risk profile of the business owner, the business itself and where is sits in terms of maturity.

Here are some of the more common sources of funding (finance), other than banks.

Friends & Family

Often overlooked, this is probably the quickest and possibly the easiest source of funds.