Starting up a business can be tough. It requires time, and money, that you don’t necessarily have.Although there are plenty of ways you can compromise on time spent on your new venture, you might be at a loss for how to secure the funding you need to fully realize your vision.Don’t worry, we’re here to give you the low down on funding options!Here are 5 ways you can get the money you need to start up your business:
Minimize your costs
One easy way to finance your business is to minimize your outgoings.Need equipment?
Try renting instead of buying.Just you running the business?
Work out of home and forgo extra rent.When your business is still in a start up stage, it’s important to be as frugal as possible. Work out a lean budget, and stick to it!
Finance your business with your own credit If you have good credit
, why not use your credit card to help pay for business expenses?If you’re not in need of a massive injection of funds, it’s probably safest and easiest
to use your own credit cards.Obviously this could be a risky option if your business is not guaranteed to grow.
Ask friends and family
If you don’t have enough personal finances to put up, why not ask close friends and family if they’ll invest in your business?It’s important to be realistic when asking for help
; let your friends and family know there is no guarantee on a return for their investment.Often times you’ll find friends and family members are more than willing to invest because they believe in you, as a person.
Peer 2 Peer Lending
As a step up from asking friends and family, you could always get direct funding from strangers using P2P lending sites such as Prosper.com
and Lending Club
.The amount you can get from a P2P loan depends on the state of your credit.It’s important to remember that it’s difficult to get large loans via this method; these are strangers after all. The interest rates are often very high
as well, so use this method with caution.
Yet another step up from getting loans from friends, family, or strangers, is to get funded by an entire audience.
Crowdfunding for new ventures is now allowed under the JOBS act, and is an easy way to access a larger amount of early stage investors to pool together to fund your business.Some Crowdfunding websites that work for businesses are Fundable
, and IndieGogo
Need more $?
If your business requires a bigger injection of funding than any of these options can offer, that’s when you’ll require a larger business loan
.The issue here is that lenders only really provide secured loans; that is, they’ll ask you to pledge existing assets against your loan, to protect the lender in case your business goes bust.For many Americans, they simply don’t have the collateral needed to get approved for a large secured loan.That’s where unsecured business loans come in.
You can get up to $500,000 in funding from an unsecured loan, and you won’t need to pledge a penny’s worth.A lot of work goes into getting an unsecured loan, so you may need help in underwriting your financials, and ensuring your credit profile is as strong as possible.The ACS team is well versed in securing $500,000 worth in funding for business owners, and can help you gain access to the unsecured loan you need.Give us a call for a free consultation, and see how we can help finance your dreams.