There are many sources who offer business funding today. Knowing the different sources will help you find the best funding options for your business. Remember, most of these funding sources you can access right through your funding suite with us. So, reach out to me to receive more information about the specific funding that will work for you and your business.
In the meantime, look at some of the many sources of funding that are available today.
Business Charge and Credit Cards are a fast and easy way to access cash for the business. You can use the money for any purpose, and you can be approved for business credit with no personal guaranty or credit check. Many merchants will approve you for individual credit cards of $10,000 or higher.
Angel investors have been responsible for funding over 30,000 small businesses every year. With over 250,000 active angels in the country, you may want to consider an angel investor network to simplify your search. Manila angel investors and startup funding Philippines are great source of funding when banks won’t approve you, and perfect for projects where you need a lot of money.
Asset Based Funding is perfect if your company has collateral such as accounts receivable, inventory, equipment, purchase orders, or real estate. These assets can be used to secure the financing you need, and you can secure asset-based funding even if your credit isn’t very good.
Bank loans are still available, although they have become harder to get approved for. Many large banks tend to be much more conservative in lending, so you may want to consider a community bank or credit union for a small business loan.
Lines of Credit are perfect sources of working capital. A line of credit works like a revolving credit card but with much lower interest rates and higher available credit limits. You can get credit lines over $150,000 and write checks from the account or use a debit card to withdraw funds or use for purchases.
Merchant Cash Advances and Merchant Lines of Credit are perfect for businesses who process credit card payments. This type of financing will advance you money against future credit card transactions. You can even get a debit card to use the funds you secure.
Venture capital is neither easy nor fast to be able to tap into but can be a viable source of funding. This is a great source when you need higher loan amounts, and don’t mind giving up a potential stake in your company. Plus, you don’t have some of the headaches that come with conventional funding.
To get your business off the ground, as well as keeping it there, you need the cash to do so. Getting this cash can however often be a difficult process and will be made more difficult if you have other commitments already such as a mortgage, car and a family to support.
The traditional route of gaining business funding has always revolved around visiting your bank for a bank loan; however this route isn’t always the best to approach when you are looking for start-up business funding as banks are known to not like providing new, small businesses with money as your business will have no financial history and you will more than likely have no assets on offer to secure the loan.
When starting a new business venture, it is important that you get the start-up funding from somewhere that can provide you with what you need and that you will be able to have a good working relationship with.
One thing that you could do to get the start-up funding that you need is to look at your personal finances, your ‘inventory,’ to find out if you would be able to fund your business yourself. This concept is highly unlikely, but some people have managed it. You should look at the money being brought in by a part-time job, a life insurance policy and family and friends as well as any money that you have at your disposal from a credit card.
By using personal finances, you in effect become your own boss, which gives you control over your money. If like many you can’t afford to use personal finances you have the option of borrowing money or getting the help of an investor. You may want to borrow finance to cover aspects such as day-to-day expenses. The main way that this is done is through a loan; however, as previously mentioned, many banks are reluctant to give a loan to a new business venture.
The best way in recent times for a business to gain the finance that is needed is through the use of equity funding. Equity funding is share capital, which is invested in your business in return for you handing over a share of your business. Whatever business funding you decide on you need to ensure that within your business plan you have stated how much funding you are hoping to gain as well as what you want this funding for.