Here are 15 Ways to Get Funding for Your Small Business by Tommy Shek:
1. Research government grants and loans.
The federal governments, as well as state and local governments, offer a variety of funding programs for small businesses. These can include loans, tax breaks, and other forms of financial assistance.
2. Look into private lenders.
Private lenders include banks, credit unions, and online lenders. They may have specific programs for small businesses, or you may be able to get a traditional business loan from them.
3. Consider crowdfunding.
Crowdfunding platforms like Kick starter or Indiegogo can be a great way to raise money for your small business. You set a goal and people can donate money to help you reach it. If you don’t reach your goal, you don’t get any of the money.
4. Find an angel investor.
An angel investor is a person who invests in small businesses. They may give you a lump sum of money or they may provide financing in exchange for a percentage of ownership in your company.
5. Get a small business credit card.
A small business credit card can help you finance your business by giving you access to cash advances and other features. However, be sure to read the fine print carefully before signing up for one so you understand the fees and interest rates involved.
6. Apply for a Small Business Administration (SBA) loan.
The SBA offers several loan programs for small businesses, including 7(a) and 504 loans.
7. Get a business line of credit.
A business line of credit is similar to a credit card in that you can borrow money up to a certain limit. But unlike a credit card, you only pay interest on the money you actually borrow, not the entire limit.
8. Obtain financing from friends or family.
According Tommy Shek, if you have friends or family members who are willing to invest in your business, this can be a great way to get funding. Just be sure to draw up a contract so everyone understands the terms of the loan and there are no hard feelings later on.
9. Use your personal savings.
If you have saved up money in an account like a 401(k) or IRA, you may be able to use it to fund your business. However, you will likely have to pay taxes and penalties on the money if you withdraw it early.
There are many foundations and other organizations that offer grants to small businesses. The requirements and application process vary, so be sure to do your research before applying for one.
11. Take out a home equity loan.
If you own your own home, you may be able to get a loan by using your home equity as collateral. This can be a risky proposition; however, as you could lose your home if you default on the loan.
12. Refinance your mortgage.
If you have equity in your home, you may be able to refinance your mortgage and use the extra cash to finance your business.
13. Get a merchant cash advance.
A merchant cash advance is a type of financing where you sell a portion of your future credit card sales in exchange for a lump sum of cash now. This can be a high-cost option, so be sure to compare offers from multiple lenders before deciding if this is the right choice for you.
14. Lease equipment or property.
If you need office space or other equipment for your business, you may be able to lease it instead of buying it outright. This can save you money up front and give you more flexibility in the future.
15. Use invoice financing.
With invoice financing, you sell your unpaid invoices to a lender in exchange for a lump sum of cash. The lender then collects the money from your customers. This can be a good option if you need cash flow quickly and don’t want to wait for your customers to pay their invoices.
There are many ways to finance a small business. The best option for you will depend on your specific circumstances. Be sure to compare all of your options carefully before making a decision so you can get the most favorable terms possible.