So, you’re starting a company. Perhaps it is an electronic cigarette e-store, or a bookstore. Maybe it is a hair salon or a trucking company. Whatever your business, there are a few things that all have in common. They all need employees. They all need inventory or tools and products. They all need funding. This last one can be an issue, and the bank will not help you out if you are just starting out. Many aren’t sure where to go or what to do after they are turned down by the bank, but thankfully there are many alternative business funding solutions available to help.
A cash advance from a merchant account provider is often the most reliable and time-tested way to get alternative funding. This isn’t a loan, but rather a “buy in” to your future sales. The ways this works is that the amount you are granted is deposited into your merchant account. When you make credit card sales, a small percentage is paid back to your merchant account provider. If you don’t make a sale, you don’t pay that day. It’s as simple as that.
Another popular option is crowdfunding, but for many this isn’t the ideal solution. If you have a huge online presence, this could pay off for you, as the way this works is that the campaign to gain funds is passed around social media. Funds are not guaranteed, which is one major issue. Another issue is that the site hosting the fundraiser gets a certain percentage of the funds, so you need to take this into account before stating your overall goal. For example, if your goal is $10,000, but the site takes 30%, you would only end up with $7,000 if your overall goal is hit.
Government grants are also good, but they are often overlooked because most require you to be in a certain industry, or demographic, or both, to be eligible for the grant. Even so, it is worth searching for. These do not have to be repaid, but few are given, so if you apply, also look into other funding sources.
The search for startup funding can be tough, but it is possible to find adequate funding for your new venture. Be sure to read the fine print, in whatever you choose, because funding your business is one of the most important things you will do.