Percentage Down Loan Requirements

While traditional loans are the cornerstone of many business ventures, providing the money to begin a business, the fact that many of them require a down payment that gets larger and larger depending on how much you want may put your prospects on the back burner if you cannot seek alternative financing. After all, who wants to pay money up front at a time when you need money? Fortunately, there are many forms of alternative financing that you may consider to help you get your business off the ground, most of which do not require a down payment.

For example, Venture Capital may be a viable source of financing for your business. While they generally invest in business that are more established and ongoing, some do fund start-ups. In general, they tend to invest in high-technology businesses, such as research and development, electronics and computers. Venture Capitalists deal more in large sums of money, numbering in to the millions of dollars, so they're generally well suited to businesses that are going big from the start or have grown and require big expansion.

Angel investors are another source of alternative financing that can help you start your business up. Unlike VC financing, they typically invest in companies that are too small or young to qualify for bank loans or other traditional means of financing, or can't afford down payments on traditional loans. With angel investors, you should generally look for either a network or individual who is familiar with your particular type of business or market to secure financing, as it will make it more likely that they will provide funds.

There are other sources of alternative financing, including Initial Public Offerings of stock and a few offered at commercial banks, which you can look at depending on your business' needs, however many of these aren't well suited to start-ups or even small companies looking to grow larger. Always have a solid business plan and be ready to aggressively advertise your business to potential financiers - people and groups who participate in alternative financing can be even more fickle than banks in deciding whose company to invest in.