For many, owning their own businesses are the quintessential American Dream. Oftentimes, the best way to make your dream a reality is to market a skill that you are not only passionate about but that you have mastered.
Whether its handcrafted jewelry or masonry, once you have decided what services you will offer and how they will value your customers, you need the business funding to get it off the ground. In here, lies the tricky part.
Startups Have Much to Think About
Where will you get the seed money? How you will keep enough cash on hand to handle every-day expenses is a real concerns for startups and small businesses.
While access to capital for small businesses has steadily increased since the Great Recession, these businesses are still feeling the effects of being locked out of lending opportunities for a decade. The good news is that banks and alternative lenders are lending at more accessible rates, but small and mid-sized businesses also worry about the Federal Reserve’s interest rate hikes and the other two or three they plan between 2018 and 2019.
With this in mind, people who have dreamed of self-employment should seek business funding now.
Business Funding Options for Startups
When traditional bank loans aren’t an option, consider these ways to fund your ventures:
- Crowdfund: According to the crowdfunding platform, Kickstarter, $349 million has been successfully pledged and invested in projects using this site. Launching a campaign via a crowdfunding platform can be the answer to start up money if you can drum up interest and support for your idea. It allows you to get an idea in front of thousands or more potential supporters.
- Barter or Swap: Trading products or services is another way to raise funds. However, product and service swapping is probably better suited for new product development or building a new marketing strategy. Additionally, bartering or swapping is not going to pay for you to buy or lease a building or cover payroll costs.
- Access a Retirement Account: Borrowing money from your IRA or 401(k) will give you a quick and easy burst of cash. Don’t empty the account. Instead, consider a 60-day, interest-free loan from one of these accounts. You can avoid fees if you repay the loan before the terms end.
- Apply for a Business Loan: Applying for a high risk business loan is a great way to start a business that is anticipated to be in an industry with excessive chargebacks or returns or higher-than-normal ticket prices. This type of loan can help you get started, buy some equipment, inventory, or hire a team.
Final Thoughts on Business Funding
Filling your days doing the work that you love is within reach. Sell jewelry, draw up business plans, or offer dog walking services. Your dreams of turning your favorite past times is a possibility now that you know business funding is within reach.
When banks prevent you from having the opportunity to build the best business you can imagine, you need to look for other funding opportunities for alternative lenders. Don’t allow banking regulations, strict credit requirements, an extensive review of tax forms and bank statements, and complicated contracts stand in the way of getting you the business funding you need.
If you cannot get a traditional business loan, apply for business funding via an alternative lender, such as First Merchant Account (FAM). It specializes in providing merchants with financing options that work for new businesses, merchants of all types, and will all different levels of credit. The online application process is simple and easy.