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Don’t give up after a failed loan application! There are plenty of methods to get the funding you need. Before anything, you need persistence. A lack of effort and attitude is far worse than a failed loan application. Just because your application was rejected, doesn’t mean you idea is bad. So, what are some other methods of gaining funding?

Here are 4 smart ways to finance your start up when a loan application fails.

Third-party loan guarantees

Third party loan guarantees are becoming more popular due to some strict lending criteria from banks. A third party loan guarantee typically sees an entrepreneur team up with a private investor to get a bank loan. The private investor or third party will personally guarantee the loan. The investor will then take some equity in the business.

The person taking the equity is making use of their balance sheet to gain equity without writing out a large cheque. The bank is much more comfortable lending to the small business now that the third party is involved.

Obviously, you need to make up your mind about how much equity you want to lose. Will losing the equity be worth it? Are you able to fund your business another way that allows you to keep all the equity?

Currency Trading

The idea of currency trading can turn people off very quickly. Being a beginner and trying to jump into the forex market is very difficult. Getting a solid foundation of knowledge is important but easier than you may think.

Obviously, it is important to educate yourself first, before you start investing larger amounts of money. Try visiting websites like Learn to Trade as they offer some great information about the forex market and have great educators for beginners. They have an experienced team of dedicated teachers and mentors that can help you find your feet in the forex market.

So, why should you go to the effort of learning all this new info? The forex market is unlike the stock exchange. The low barriers to entry mean you can start with as little as $100 in your trading account. Furthermore, you can trade from anywhere in the world and at any time, the market is open 24/7.

Learning the basics and slowly gaining experience will get you decent money. For an individual trying to fund a start-up, there are extra bonuses like no charges from brokers and governments. Everything you make is yours and can be put towards your start-up.


Crowdfunding is becoming very popular among start-ups. In recent years it has been considered as one of the best alternative methods to funding a business. There have been many great successes from crowdfunding. However, that does not mean it comes without downsides or issues.

People think that crowdfunding can bring inexperienced or naive investors into a business. However, do remember that those investors are bringing their money and somebody trying to get their start-up running, any funding is good.

Crowdfunding is essentially funding from customers, which hints that your product is being validated by those customers. Additionally, even the slightest bit of funding will assist you in gaining another round of financing later down the track.

There are plenty of crowdfunding platforms you can easily access and begin the search for the right investor. Sites like Indiegogo and Angel are a perfect start. Another benefit of being on sites like this is that investors are often searching these sites trying to find their next investment. 


Competitions can get you funding, but also other significant benefits a bank loan can’t offer you. Larger organisations or schools with influential and experienced people will provide mentoring or guidance to aid you. The competition will also get you significant exposure a bank loan will not.


A contest could be anything from an elevator pitch in front of investors to submitting your idea online. Remember, if you don’t win, consider it as a learning experience.

So, there you go – four additional ways you can use to finance your business if a bank fails you. Remember that persistence is the most important thing you need to have here. You will be able to finance your business and get it running – sometimes it just takes a bit of time and effort. Good luck. 


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