Creative Financing Options for Small Businesses
When I started my first business back in the early ’90s, I didn’t go to a bank. I borrowed $600 from my roommate and put $200 worth of yarn on my credit card. That bought me a second-hand knitting machine and a few supplies. My knitwear business was officially born!
Of course, most businesses take a lot more capital than that to get started, and it doesn’t always make sense to start small and grow as you go along like I did.
Business growth gobbles cash, and my fashion business was no exception. In the early years, I invested in materials, booth costs for shows, and photography and printing for catalogues.
Reminder, there was no internet yet, so no websites to showcase my products! Also no social media for marketing, so media attention was key to spreading the word.
Business trips to New York shows meant international orders but high booth fees as well as travel and hotel costs.
In 1998, I opened my first store in Kensington Market! I remember being $8k in debt and terrified I’d never manage to pay it back.
Now I wonder how I opened the store on so little money! Painted bookshelves from Honest Ed’s were the store fixtures holding folded sweaters, and there were dowels in between for hanging clothes. Everything was done on the cheap, but it still felt like a huge risk to me.
For a lot of years, I was running the business as a sole proprietor, relying on my personal credit rating and using personal loans, lines of credit and credit cards to finance growth. That got more and more stressful as the business grew and the gambles were bigger, so I created a corporation for the business and started slowly building up a credit rating for the business so I was more personally protected.
This little fashion business- started with that $600 loan from my roommate and just $200 worth of yarn bought on my credit card- grew into a 7- figure business with 3 boutiques in Toronto and an online store!
Along the way, I was figuring out how to manage cash flow, predict seasonal slowdowns, have the right inventory at the right time, and create budgets that worked. All this while taking leaps of faith and investing in growth.
Getting a “yes” from the bank was never guaranteed, and like many entrepreneurs, I learned to be creative and stretch money as far as I could. Sometimes, though, that really limited what I could do, or how well I could do it.
If only I’d known more about my options for alternative business financing at the time!
Having the money to fuel your business can be the “make or break” difference when it comes to taking advantage of an opportunity like a huge order for your product or securing the right location for your shop.
That’s why I wanted to talk to Business Fixer Michael Yasny to talk about what to do when the banks say no. In the video below, we cover:
- Leasing — a lower-risk way to access what your business needs
- SBL loans — a lesser-known financing option backed by the government
- Strategy— how to negotiate and piece together financing options to your benefit
- Protecting yourself— minimizing your personal risk with various strategies
There are more options out there than you might think. Some are even within reach right now—you just haven’t heard about them yet.
👇 Watch the video to hear Michael’s tips on getting creative when traditional financing isn’t available.
And if you’re trying to figure out your next financial step, know that you’re not alone. I’ve been through it too, and sometimes all it takes is hearing the right idea at the right time.
Want to talk to Michael about alternative business financing or other ways he can help your business?
Book a free call with Michael here.
Michael Yasny has been helping business owners for 30+ years with financing for start-ups and growth, business loans, equipment and machinery leases, mortgages, debt restructuring, factoring solutions (financing based on receivables), solutions for landlords with delinquent tenants, broker referrals, and government programs.
Want help with your business strategy? Let’s talk!
Book a free call with Laura-Jean here.
Laura-Jean has been mentoring and coaching entrepreneurs for over 20 years, including designers, makers, artists, stylists, financial planners, retailers, event planners, service professionals and more. If you’re starting a business or growing a business and might want some guidance, lets’ chat!
