While you may have a million-dollar idea for a business start-up, you need to be able to fund it. After all, you will need a tech team, a website, not to mention an office space.
Besides, you'll also need to have some cash coming in every single month to pay for all these expenses. So, how will you be funding a small business?
The truth is that funding a small business is one of the main difficulties most new entrepreneurs have. However, the good news is that there are many different loans for a business startup.
While this may not be an option for everyone, it's worth to be considered. There are multiple ways that you have to fund your own business start-up without asking anything to anyone.
Some of the most used ways include tapping your personal savings account or sell any personal assets that you no longer need. These may include selling any bonds or stocks that you may be holding, a family heirloom or even real estate.
However, in case you don't have a savings account or if you don't have any personal assets, you can also use your credit cards. While they are one of the easiest ways to get the funding you need to your business start-up, make sure that you don't forget that you'll need to pay some huge interest rates for the balances that you're unable to pay at the end of the month.
In case you own a home, you can also borrow against the equity in the property. However, this kind of loan is more difficult now since the financial crisis. And since you are already thinking about banks, you should also consider the option of taking out a bank loan.
This is usually a much better option when compared with using your credit card. And in case you don't own a home, this is a definitely a good option.
Last but not least, you can also take a look at your retirement accounts. While the funds in your 401k or IRA may be a good option, please remember that there are some hard penalties for early withdrawals.
2. Family and Friends
Loans for a business startup may not be easy to get. However, if you believe in your idea, you need to keep fighting until you find a good opportunity that allows you to launch your business startup. So, right next to trying to self-finance, you should return to family and friends.
This is n fact, one of the most popular ways to funding a small business. The truth is that your family and friends won't be so demanding about getting their money back in a specific date and you most probably won't even need to pay the high interest rates that you would need to pay if you asked a loan at a bank.
However, you always need to think that money can ruin a good relationship and that business and pleasure should never be mixed.
Even though these are the preferred options when you are looking for loans for a business startup, you should also consider looking at the small business administration (SBA) loans, especially the 7(a) loan program, venture capital, angel investors, and crowdfunding.
As you can see, you have plenty of options to funding a small business. Just make a good research first and evaluate all the pros and cons of all the options./get-funding-business-start/Small Business