Getting A Modern Day Grub Stake For Funding
Back about 100 years ago when a man wanted to head out and prospect and look for gold, if he didn't have the capital or cash on hand he would need to look around for someone who had money that they could loan out for a portion of the gold they found. This was called "Grub Staking." Back in the early days a grub stake consisted of enough cash to purchase the things the prospector would need. The terms and conditions of a grubstake varied from person to person. The person who loaned the money would then get "X" amount of gold in return for cash upfront payment. If the prospector/miner didn't come through with his end of the deal there was usually some collatoral of some kind that was left with the lender as a token of good will.
Over the years things have changed a lot but the fact remains for most prospectors or miners who wish to develope or expand a property, getting a grub stake is still the best way. They don't called it grub staking anymore however. The people who loan out money for mining ventures are usually people who understand the risks involved with mining. Because mining is such a high risk business there are very few bankers who will cough up any cash for you. Of course most banks won't give anyone starting a small business of any kind a loan as they know that most small business have a failure within the first five years or so. So that leaves the would be prospector needing to find funds elsewhere.
Aside from friends or family and having to sell everything you own, a lot of would be entrepreneurs are going online to places like kickstarter or some of the other go fund me sites. There if your idea is super great, outstanding and novel, you might get the funds you need. However because prospecting, mining ventures, quarries and gravel pits are not up there with the so called "trendy" ideas, you will most likely need to keep looking. Because conventional banking is loosing it's appeal and competative edge, a lot of new business people in the past few years have turned to OnDeck for small business funding. OnDeck is a specialty type of lender that caters only to small independant business. This is a company that started in 2007 so far to date they have loaned out over 6 Billion dollars to small business in USA, Canada and Australia. More so than just start up funding many business owners are repeat clients as they return for financing for things like expansion or buying more equipment depending on what their business needs are. Because they are totally internet based they are fast and don't waste peoples time like the major banks where you need to make an appointment and wait for days or weeks for an answer. The world doesn't work like that anymore and with OnDeck everything is done online through their website and that is just one of the reasons why so many aggressive new business owners are getting their funding from places like OnDeck