How To Get Business Financing For Your Startup In 2017
There are a lot of ways to get the capital you need for your business and you are only limited by limits of your creativity.
But here are some ways to help you get business funding for your startup:
How To Get Business Financing:
1) Personal Savings.
One of the most convenient ways of financing a small enterprise is to use one’s own savings.
This is because you will be left to repay yourself at your convenient schedule and even if the venture happens to fail, then you can just let it go without being harassed from left, right, and center.
Then, what better way to show how serious you are about your business than investing in it?
2) Government grants and loans.
They are cost efficient and reliable.
The government has established the Small Business Administration agency that assists small enterprises to raise funds with which to set up the ventures.
The repayment plans are quite pocket-friendly, and the interest rates are quite affordable even to the smallest investment regarding turnover.
3) Private lenders.
Although their interest rates may be higher than those of the government, they are less likely to reject your loan application despite your financial background, be it right or bad.
If this borrowing fails or does not play music to your ears, then you can consider financing your venture through partnerships, where you and your partners bring in a given amount into the venture, which will be repaid after your enterprise has realized profits.
4) A Personal Loan.
If you have fairly good credit, you can probably get a personal loan from a financial institution.
Many businesses have been started with personal loans.
It could be in the form of a holiday loan, emergency loan or salary advance.
Depending on how much you raise, this can be directed towards your business.
5) Family and Friends.
You may be able to raise capital for your business from your family and friends. you can give them an equity stake in your business.
You can even give them an equity stake in your business.
And you should be business like in your dealings with them by providing a copy of your business plan and putting everything in writing.
6) Credit Cards.
If you have or can obtain several credit cards you can get a cash advance on them then use the money to start your business.
So if you have, for example, three credit cards with a line of credit of $10,000 each you could quickly raise $30,000 for your business to get it up and rolling fast.
However, before you use credit cards, be sure that you can earn enough profits to maintain the payments until you can pay them off.
7) SBA Micro Loans.
A microloan is a form of funding in which the SBA provides loan money to intermediary nonprofit agencies such as Community Development Agencies (and similar kinds of agencies) in every community.
These nonprofits then make these loans to deserving businesses in their respective communities.
You can borrow as much as $5,000 to $35,000 with the microloan program, and it is well worth trying out.
8) Angel Investors.
These are individuals with large amounts of excess capital that they love to invest in promising business ideas, which will make them, even more, money.
An angel investment is an equity share in your business, so before you approach angel investors know how much you are willing to give up, and have a good business plan.
With a good business idea and a good business plan, you can get the money you need to get your small business operations off to a good start.
These 8 ways are just some of the many ways to finance your business start-up.
Whatever way you decide to get your business started, it can be done successfully, and the only limits you have are the limits of your creativity.
We hope these tips will help you get the capital you need to turn your great business idea into a profit-making machine.