4 Easy Ways to Finance Your Small Business
The biggest factor concerning any business big or small is money. Once you fund the initial startup, if you do not have enough money to keep your business functioning on a daily basis it is destined to fail. Gone are the days of going to the local bank and applying for loans and waiting for approval, today, all you need is a computer and internet access. The following are four easy ways to finance your small business from the comfort and convenience of your home or office.
Apply for a small business loan
The first and most common way to finance your small business is with a small business loan. Simply Google “small business loan” and in a matter of seconds you will be presented with pages and pages of funding sources. The first thing you want to check is that they are reputable, so it is always a good idea to do a little research via the Better Business Bureau on any potential lender before you sign any paperwork. Always compare rates, terms, and loan options to ensure you are getting the best deal on the amount of money you need. You also want to be sure that you have enough cash flow to repay the loan under the terms of the contract. Nearly every lender allows you to apply online and in some cases, you may even get immediate approval.
Online crowdfunding sites
Over the past few years, there has been an explosion of online fundraising platforms. Sites like Kickstarter and GoFundMe allow you to solicit funding from any corner of the world. Although these sites take a percentage of the amount you raise, if other resources are not working out, it can be a viable option. Be sure to read all the terms and conditions of the crowdfunding platform thoroughly before you sign up so you know up front if you must reach a set goal to keep the money or you can keep the money whether you reach your goal or not. The largest benefit of crowdfunding is that you do not have to pay back the money, but you must be sure that you report any donations received come tax time. Once you sign up and start your campaign, use all of your social media resources to promote it.
Grants and local community incentives
Researching available grants and local community incentives can also help you finance your small business without a debt hanging over your head. Depending on the nature of your business, the size of your business, your location and other considerations such as your gender, there are grants available to help your business grow. There are also many cities that will help fund small businesses to help contribute to the local economy. They may or may not directly offer a grant (free money for your business), but tax breaks and incentives are as good as money in the bank. Many organizations allow you to apply online, those that do not will usually provide you with all the necessary paperwork to print out from your computer to complete and submit.
Appeal to your friends and family
If all other sources to finance your small business have still not provided you with the funding you need, you can always go in with friends and family. Although you may not want to give up a percentage of your business, depending on the deal you can work out, it may be the only alternative. Before deciding on this route, be sure to contact a lawyer so that everyone’s interests are covered. Appealing to friends and family may not be your first choice if you are in need of funding, but it can help you build your business and make applying for loans from other sources easier.
These are just four ways to finance your small business but they are some of the easiest. Taking advantage of online resources allows you to both research and apply for funding without ever having to leave your office. As with any funding, always borrow what you need and what you know you can pay back.