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Yellowstone Capital LLC Reviews Alternative Funding Solutions for Small Businesses

Every small business needs funding, but not all of them have the capacity or capability to self-fund them, or gather some capital from private means. In such a situation, small businesses and their entrepreneurs must think creatively about how to acquire cash and keep their business running.

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There are multitudes of financing options available in the market today. No matter if a small business is looking for an initial phase of capital investment to kick start their venture or an additional infusion of funds to keep themselves in business, YellowStone Capital LLC recommends smart alternative funding solutions which give a business the leverage it needs.

Venture capitalists

Venture capitalists are well-established investor companies who provide funds to small businesses and new startups, which are considered to have both high-risk and high-growth potential. Fast growing businesses with an already streamlined business strategy can gain about ten times capital investment than the ones still struggling to stand in place.

The upside advantage of working with venture capitalists is that they focus on particular industries and can give advice to entrepreneurs on whether or not their product(s) or service(s) will survive the market heat in both long and short run. The downside of this alternative funding option is that most venture capitalists come with a short-leash mindset, and often try to recover their investment within a three-to-five year window.

Angel investors

Angel investors mark as one of the best and most fruitful options for start-ups and small businesses. Essentially, angel investors are the opposite of venture capitalists. They are affluent individuals who infuse capital in small businesses in exchange for ownership equity or convertible debt. Google and Costco are some of the prominent examples to quote here. Additionally, most angel investors also work as mentors for these companies and help them boost their business in ever manner possible.

Factoring/invoice advances

Factoring or otherwise known as invoice factoring is a perfect option for small businesses engaged in the B2B market. In this, a service provider funds a business on invoices which have already been billed and the business pays back the amount once its customers and/or clients settle their dues.

The advantage? Such advances help small businesses close their pay gap between payments to suppliers and on-going work. The business keeps running while waiting for its clients and/or customers to clear their dues and even accept more projects quickly.


Crowdfunding is one of the easiest and most convenient alternative funding solutions for small businesses.As the name suggests, it’s the practice of raising small amounts of capital from a large number of people. Sites like Kickstarter and Indiegogo are excellent examples to quote here. Businesses can list themselves on these sites, present their venture module and pitch investors to invest in their companies.

Purchase Order and Trade Finance

Small businesses do not usually face challenge in managing sales or production; it’s more about keeping their finances intact in order to keep their venture up and running. With purchase order financing, small businesses can grow their business activities without the need to increase their selling equity or bank debt. This alternative financing option is fast, flexible and convenient financing option, which has helped many small businesses scale their activities and survive the market heat.


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