Getting Funded for your New Business
Starting a business and watching it grow into a successful one gives you great pride. There is a lot of info out there about how many businesses fail, it is refreshing to read about those that succeed. This should give you hope as you launch your business than in trying other alternatives. You will if you get the right tools in place. Your source of funding is crucial. Here are some sources you can turn to.
You can use a home equity loan. At the start of a business, you are intertwined with the business so much, taking a personal loan to fund it makes sense. The equity on the house serves as perfect collateral.
There is also equipment funding. This was designed to help businesses acquire the necessary equipment for their operations. With the help of your accountant, you will discover more about this product.
You can go for an SBA loan. This comes from the government via a bank where you can access it. The government guarantees the loan in part, which makes them less risky. The loan gets used for so many things, like finance inventory. Your local SBA lender should advise you on how to proceed accordingly. As long as you can handle the bureaucracy, you shall get the funding you needed.
There is also a personal loan which you can apply to the business. You can approach a bank when you have good personal credit. You will also not need to give collateral. You can also go for online lending where your credit is not good. Such loans are short term, and come with high interest.
You can also get a few investors to fund the project. You can approach your family members for the funding, but be prepared to deal with the gift tax that ensues. A good way to do so is to sell them shares in the business, thus managing to avoid the tax. You shall pay them back by buying those shares. Apart from that, you can approach angel investors and venture capitalists. They usually give interest-free startup money for shares in the business.
If all else fails, you can go for the business credit cards. These cards give you a chance to take out money for a low fee. They even allow you to pay back that money without any interest charged, provided you do it within a specific period. As soon as that period is over, the provision of interest rates resumes. If you do get to pay before that day, you shall enjoy a big saving.
These ideas shall see to it you get the funding in time. You can learn more about funding on this site.