Get the business funding you need
If one of your dreams is to own a business in the US, then funding is undoubtedly among the major stumbling blocks you’re dealing with.
A business is a venture, which means you have to put in some capital— to get it up and running—and then keep funding its operations for as long as it lives.
And because money is always a limited resource, it takes a smart entrepreneur to weather financial storms every time they strike.
You have to search in all places and go the extra mile because sometimes, your remedy is around the corner, but you’ll never know until you search.
Forget banks and all the formal lending institutions that make life difficult for you. Try these five creative sources of business financing.
Business Funding Options for Forward-thinking Entrepreneurs
Because we are dropping formality for instant hassle-free funding, you have to be an outgoing and social retailer to benefit from such sources.
Most of them, as you will realize, are a stone-throw away, but you have to be hands-on to get your hands on them.
- Domestic funding (from pals and relatives)
Well-thought-out financing and borrowing from domestic sources like pals and relatives is an excellent way to source business finances.
Whether you’re after starting capital or need additional working capital, borrowing from someone who understands your situation can increase your odds.
Still, you want to keep things formal. If possible, write a binding agreement and stick to the agreed-upon repayment terms.
- Out-of-Pocket Funding
You can fund your business out-of-pocket and still survive and thrive. Tap into your savings, personal lines of credit, and any other sources of money you can think of.
Spend wisely if you’re funding out-of-pocket, and seek backup sources to rely on when finances are tight.
Crowdfunding (under the JOBS Act) allows an entrepreneur to tap into a group of investors. Most of these financiers are lenient and give startups access to funds without much ado.
Find out more about this form of funding (and enjoy such services) from websites like Fundable and IndieGoGo.
- Angel Investors
An angel investor is a business financier. They decide whether or not a venture is a worthy investment based on its business idea/plan (among other criteria).
Many angel investors will fund you in trade for a flexible debt or ownership equity. Remember to conduct a thorough internet search if you find this idea interesting. Requirements vary from one investor to the next, so don’t give up on your search.
- Merchant Cash Advances (MCAs)
This product is NOT the right place to source starting capital. But it is appropriate for a new business with 4 to 6 months of dependable per-day revenue.
With MCAs, your business borrows a lump sum amount in exchange for its future transactions.
In essence, a lender studies your sales records (among other credentials) and decides if you’re worth a loan—and how much to trust you with.
Finally, no collateral requests or complicated underwriting processes here! And the agreed-upon amount could be ready in as soon as 24 to 48 hours.
Lastly, try your luck with bank loans and funds from the SBA or Small Business Administration. These are equally useful sources if you have what it takes to qualify.