Although it’s easier than ever to start a small business from home today with just a small amount of capital, many business owners find themselves facing the need to apply for funding at some point during their entrepreneurial career. If your company is not yet bringing in the type of capital that you need to take it further and make important investments in marketing and developing, then it’s likely that you have already considered applying for a business loan from the bank. However, bank loans are becoming more and more difficult to obtain, or you could only be in need of a small amount. So, what are your alternative options? Let’s find out.
#1. Short Term Loans
If you are in need of a smaller amount of funding and are going to be able to repay it in a short amount of time, then a short term business loan could be the perfect option for you. For example, if you are struggling with unpaid invoices from your clients then a short term loan will be able to cover you until the payments are finally made, allowing you to keep up with your business expenses without having to worry about lengthy repayment terms or borrowing more than you need.
When it comes to raising money, crowdfunding has recently become an increasingly popular method. You may have already seen crowdfunding in action; for example, raising money for a charity, or even with students who are asking for financial help to go to college. When it comes to getting business capital, crowdfunding has quickly taken off as a popular new method. There are a number of crowdfunding sites that you can use, which will allow you to ask for donations or investments from members of the public; allowing you to raise the funds that you need but from a potentially unlimited number of people. Since crowdfunding allows anybody to invest, you can take small amounts of funding from multiple people, rather than asking for a large amount from a lender.
#3. Angel Investors
If your business has a lot of potential then you might want to consider pitching your ideas to an angel investor. Although this is more of a long-term option when it comes to business funding, many angel investors are certainly worth having around since once they have invested their money into your business, they will be just as emotionally invested as you are when it comes to making sure that the company does well, therefore many will also act as a mentor to you. Since many angel investors are experienced business people, this can be the perfect option for new or inexperienced entrepreneurs who may be in need of advice or support to get their business off the ground and achieve their goals.
As a business owner, there are many reasons why you might decide to apply for extra funding. However, it’s good to be aware that the bank isn’t your only option!
Would you like to share your opinion on this? We’d love to hear from you in the comments.