Where To Look For Small Business Funding
Small businesses are the backbone of the U.S. economy, but it can often be difficult to get funding. Small businesses are less likely to find funding from lenders, so you need to be creative. This article is going to go over some of the many ways that you can pursue small business funding.
Traditional Lending Options
First of all, most small business funding most often comes from common sources. These are more viable if your business has been built up, so be mindful of the state of your business if you pursue this path.
Bank Loan. Receiving a bank loan is becoming more difficult. Strong collateral and good credit can help secure a traditional bank loan.
SBA Loans. Small Business Association loans are growing in popularity in today’s market. If you meet the criteria this can be a great option.
Nonprofit Microloans. Nonprofit microloans, such as Kiva, get used for small businesses in developing countries.
These sources of funding can be very useful, but generally are only available in certain circumstances. In general, these are viable but not sustainable.
Family and Friends. Sometimes, support begins at home. If your family believes in your business, they can be financial backers. Many looking for small business funding use this as a start.
Business Lines of Credit. If you have good personal credit (around a score of 700) this could be an option for you. Granted, many business owners looking for funding may have some credit trouble.
Prize Money or Contests. If you’ve got a great business idea and time to enter, this could be for you. Contest exist where the prize money goes towards funding your business. In addition, this can also serve as advertising and promotion for your new business.
Personal Savings or Assets. Selling off your assets or using your savings can provide quick cash. Just make sure you don’t risk too much to get your business up and running.
Government Funding Options
Government Small Business Grants. Grants are industry-specific generally. These also have guidelines on how you use your funds, as well as outcomes that you need to achieve as a result of the lending.
National Association for the Self-Employed. NASE offers grants and scholarships for self-employed business owners. However, like a grant, you are responsible for meeting certain goals grant.
Local Government. Each state and local government has a branch which assists with grants and loans.
National Institute of Health Funding. Funding is available through NIHF. However, to qualify, your business will need to conduct certain types of research and meet certain criteria.
These off-beat sources are becoming more popular as funding is harder to find. Here are some of the many options.
Crowd Funding. A growing lending method in the financial market is crowdfunding. Crowdfunding websites allow you to create a personal web page. These pages explain the goal funding will help achieve.
Venture Capital. There are strict criteria involved with venture capital.These may block off many businesses from this form of lending. At the same time, it’s still a possibility.
Industry-Specific Funding. Certain industries have sources of funding for businesses in their category. This is a great way of tapping into your local resources, as well as getting your community involved.
Local Agreement. Small businesses and nonprofits may be willing to work with you. These can help increase patronage of your business, in turn generating extra cash flow. This is especially applicable to businesses selling goods.
Franchising. Franchising your brand is a great way to raise funds for your business. Businesses that are is thriving but need extra management and capital to expand are good candidates. At the same time, this isn’t for everyone.
Community Agreements. Try reaching out to small businesses or nonprofits in the community. These increase your presence in the community and the market, while increasing foot traffic. As a result, you could develop new customers. You might need to do some volunteering as a part of the agreement.
Merchant Cash Advances For Small Business Funding
Another one of the more popular options out there are merchant cash advances, such as those provided by eBusiness Funding. Our aim is to support businesses that may struggle with traditional lenders. To do this, we provide merchant cash advances that are accessible to a wider spread of businesses than bank loans or private lenders. 95% of businesses that meet our simple requirements qualify for funding. All you need is to be in business for at least six months, with over $10,000 in monthly revenue. With us, it’s not about past credit history or collateral, but about your business’s potential.
It’s important to us that you use the funds we offer in the most helpful way possible, so we put no limits on your spending. Payroll, expansion, repairs, spend on what you need! We also get you your funds fast, sometimes as soon as 72 hours after you first apply. Repayment is also simple. Rather than large monthly payments, we take an established percentage of your future sales. This percentage stays the same, so if business slows down, you pay less.
Sounds good? If you’re ready to begin, all you need to do to start is fill out this simple contact form. We’ll be waiting, and are looking forward to helping your business get the funding support it needs.