Capital: Free money almost always comes with strings attached. But if you really need capital, here are some ways to get cash, for a limited time or a small fee:
- Peer-to-peer (P2P) lending is a way to find private lenders who will lend money in exchange for equity or some other security. Prosper.com is one source.
- Microlending groups offer business loans at very low rates. These are not exactly free, but they come close.
Although the article does not mention it, Prosper is actually closed right now while they register with the SEC.
Microlending typically refers to very small loans. With Grameen America, for example, the average loan size is $2,000. These are generally targeted to poor entrepreneurs, typically women, who do not have access to traditional credit markets. The upper limit on loans through most peer to peer lending site like Lending Club is $25,000.
While I'm pleased to see NuWire mention peer to peer lending, the information presented is a little inaccurate.