Andrew Stain author of the Keep It Simple series answers his readers’ questions.

One reader asks – I have tried raising capital from my local banking community but get rejected every time. I have tried several banks with no success is there a solution?
There is a common misconception amongst business owners that banks are the only provider of business capital.

While banks perform an essential function in providing capital and are probably the largest provider they are certainly not the only solution.

While banks represent the primary market, the secondary market for borrowing opportunities is quite substantial. The usual problem is that entrepreneurs do not know how to access our market and as such believe that the bank is the only solution.

Alternative funding solutions show up in many different forms such as asset-based lenders, factoring companies, leasing companies, invoice discounters, trade finance specialists and so on. A good source of information on these alternative funders can often be found simply by asking the bank that is turning down the loan. A local Chamber of Commerce will also be another good source of information. Certainly different opportunities in the secondary market will be available and will vary location to location but in all areas there will certainly be other sources.

It is important to remember that when the bank says no – that is not the end of the world is just the beginning of a search for an opportunity if capital source.