One of the most difficult tasks of setting up a new business is finding a startup capital. An average person thinks that the only source to get startup money is the bank. Even at that, most people do not know how to secure the loan they need to start their dream business.
In recent years, people are abandoning banks as a source of capital. In fact, instead of seeking a loan, savvy entrepreneurs are using various means to raise the capital they need for their new business.
The fact is that starting up a new business is not easy. In fact, it is one of the most difficult things you will ever do. You don't need to have all the answers you need to get started. In this article, we will provide you with a list of various ways you can get new business funding.
IN THIS ARTICLE
Below Are Various Ways to Get Funding for Your Small Business:
Personal savings is the first place to look when you are searching for startup money. The great thing about this funding source is that you don't need to pay back since it is your own money. Unfortunately, in most cases, the money you have in savings won't be enough to completely fund your dream business. In this case, you can consider looking for funds from other sources listed below.
Funds From Family and Friends
If you have family and friends who are willing to help, you can get the money you need to complete the one you have to start up your dream small business.
The great advantage that comes from borrowing money from friends is that it usually carries no interest and you can pay back anytime that is convenient for you. If you have rich friends and family members, don't be afraid of asking them to help you with a loan to fund your new business.
Get an Advance from a Customer
If you can find a major customer who finds value in your idea, you can be able to secure an advance payment from the customer. This is a great way to get part of the fund you need for your business without taking any loan.
Get a Loan From the Bank
Bank loan for small businesses is the most popular source for startup capital. Unfortunately, you won't be able to secure this type of loan in most countries if you have less than stellar credit record.
Most banks can give you up to 70% of the money you need to start your small business. You need to have a stellar credit record, outstanding loan application, and a very good business plan to secure this loan.
Small Business Loan from Angel Investors
A great alternative to getting new business funding when you have less than a stellar credit record is Angel investors. These are just wealthy professionals who are willing to invest in a new generation of startups.
Fortunately for most new entrepreneurs, finding an angel investor is easy and you don't need to have the best of credit records. You can use this funding source to inject thousands of dollars into your new business. The only thing you need to secure funding from this source is to prove that your business will work.
Crowdfunding is one of the latest ways new startups are raising funding for their business. It is easy to get started; you just need to have an idea that people will buy into. If your idea sounds good, you can get hundreds, even thousands of people to invest in your business.
Crowdfunding platforms such as Kickstarter and Indiegogo have made names for themselves by helping individuals get off their initiatives and products off the ground.
Get a Loan from Venture Capitalists
If you are looking for funding for startups and other sources have failed you, you should consider venture capitalists.
These are simply professional investors that are willing to invest institutional money in new startups with a proven business model. You will be more successful securing a loan from this source if you already have an established business but wants to scale up.
Getting a loan for your small business can be one of the hardest things to do. If you want to start a new business or already running a small business but needs to scale up, these loan sources discussed above will be beneficial in securing the funds you need./get-startup-funding-startup-loan-small-business//wp-content/uploads/2017/09/startup.jpg/wp-content/uploads/2017/09/startup-150x150.jpgSmall Business Loans