We all know the basic small business financing options. You can call your rich uncle, or call your local bank. These days have passed, thanks to a new and often underrated breed, of small business financing options.
Many are using GoFundMe and other money generating websites to garner funds and interest. GoFundMe also has the option to sell your product for a certain donation, which is a good way to get your product out on the market. Social media can make or break a company, and GoFundMe and its competitors have taken full advantage of this. However, you need to make sure that if you offer up a product, that it is ready to go when the fundraiser ends. Poor planning can lead to poor press.
If you are a homeowner, you can go for a home equity loan. Home equity loans, as with many other things in life, have an upside and a downside. The good is that interest rates tend to be low. The bad is that if your business fails, or you otherwise cannot pay back your loan, you risk foreclosure. This is the main reason that many forgo looking into a home equity loan.
Another option is the services of a venture capitalist. While many are eager to help the “next big thing”, they often want their funds refunded within a short time span, usually within 5 years. While 5 years seems like a long time, many businesses are not profitable until their second year.
An ACH business loan is also a possibility. This is rather unknown to those in the small business world, but it is often the safest bet when you need financing. With an ACH business loan, you must meet certain criteria that you do not have to meet with other financing methods, i.e., you must have been in business for six months, you must have less than three NSF’s per month, you must have $10,000 in gross monthly deposits, and a 500 or better FICO score. If you can meet these criteria, you need to check out FAM’s ACH business loan program. With FAM, you can obtain these services without having a FAM merchant account.
For more information about FAM and an ACH business loan, click below