GoFaxer Blog

I see time and time again how small businesses can get themselves into trouble by not having enough money to fund their operation. With great technologies like fax to email, most can figure out how to operate on much less money and infrastructure than is generally perceived as necessary.

But at a certain point all of that cutting back cuts into the bone and muscle of your business. At that point you know that you’ve got to get more cash to increase your effectiveness as a business.

In the past it was relatively easy to go to a banking institution for loans. But with the entire credit crisis in full sway, businesses are finding it much harder to get extra money, even with good credit.

The consequence to this dilemma is that many small businesses are turning to what’s called social lending or peer-to-peer lending or Banking 2.0. Sites that do this type of thing are Prosper, Lending Club, Virgin Money, Zopa, and GlobeFunder.

An article at Entrepreneur.com gives a voice of warning:

“Self-made billionaire and business coach Bill Bartmann says he’s borrowed more than $3 billion in past entrepreneurial ventures. Bartmann believes P2P websites may be the only loan opportunities for some small businesses as credit tightens. But before jumping into any agreements, Bartmann suggests entrepreneurs do their homework first.”

Ultimately, you need to be careful and think it through.  But this could be a viable option for your cash strapped business.