Great! You have a big, billion-dollar idea for a new start-up!. But that’s not all there is to it. Or is it? Okay, you also need a website, a tech team, some office space ( if necessary), and, most importantly, you need cash, enough cash. At least, enough to set your business rolling and probably pay for a few months up.
So, it means you need money. Regardless of what your small business is all about, a swanky Café, Local Auto Repairs, amongst others, you need sufficient financing to get your business through its early days. The big question is, How do you get money to finance your small business?
What comes to mind first is small business loans, such as the affordable ITIN loan. Yes, that’s a good one, but other options to explore to finance your small business.
This article will go over some types of financial aid for small businesses, great loan options to boost your company, and more. Let’s get on with it.
Types of Financial Aid For Small Businesses
Yes, the first way is bootstrapping, otherwise known as self-funding. Bootstrapping allows you to leverage your personal resources to fund your business. You scrape together your funds from your savings account, credit cards, and maybe, any home equity lines you may have.
This is a profitable approach to starting your business. And in fact, many entrepreneurs will continue to bootstrap until their business becomes profitable. Bootstrapping relieves you of the burden of taking extensive loans and paying monthly.
Well, this also means you take on all the risks yourself. Hence, you have to be prudent with your spending, especially if you are tapping into your retirement funds early.
Get Venture Capital From Investors
Similarly, investors can give you the financing to Kickstart your business in the form of venture capital investment. Simply, venture capital is usually given in exchange for ownership share and an active role in the industry.
Consider that venture capital is mainly offered to businesses with high growth potential, preferably in the technology industry. And venture capitalists generally provide a longer investment horizon than traditional funding.
Ensure you have written terms and conditions. This is very important to avoid losing the ownership of your business to someone else.
Another way to finance your business is crowdfunding, raising funds from many people. Crowdfunders are different because they don’t expect to have something from your company or expect a financial return on their money.
Instead, they expect a gift from your business as an appreciation for their business. Crowdfunding is common because of its low risk. You still retain ownership of the company, and if things go south, you’re not obligated to repay your crowdfunders.
Small Business Loans
Small business loans are quite common among business owners. It’s a seamless and reliable way of financing your business, although you will need a business plan, expense sheet, and financial projections for the next five years.
Small business loans, like the ITIN loan, leave you with complete ownership of your business and get you the funds you need quickly.
There are quite a handful of small business loans you can apply for. Here are a few;
Loan Options To Boost Your Business
Do you need fast financing coupled with flexible payment plans? Kabbage is the right option for you. Kabbage offers a comprehensive package of tools for small businesses.
Moreover, Kabbage charges zero amount on application fees, the requirements are transparent and seamless, and there are no application fees.
Fundbox provides lines of credit to business owners, and the good thing is that you can qualify for this online without so much intrusion on your credit report.
Fundbox is an expert on business lines of credit, and they offer to fund as early as the next business day. With Fundbox, you monitor your payment plan and save money by paying off your loan early.
If you only need a small amount of money, Kiva is your best pick. They offer microloans a 0% interest rate and flexible repayment duration of up to 36 months and three full years.
Kiva is a platform where investors lend money to business owners worldwide. You can apply for the loan online without bulky paperwork and requirements.
It’s not enough that you have a great business idea. Financing the concept is also very important; else, the idea might remain an idea forever.
We’ve discussed some reliable ways of getting money to finance your business apart from taking a loan. And if taking a loan is your best option, be sure to go through any discussed options. They are seamless and quick, especially the ITIN loan.