Unlike a loan, a line of credit can be open long-term, whereas a loan closes once it’s paid off

If you get paid by your customers via invoices, invoice financing (which is different from invoice factoring) is a convenient, albeit usually expensive way to avoid cash flow issues caused by long invoice cycles. This is a speedy option-you can get your financing in as little as a day-that requires little paperwork.

7. Crowdfunding

Popular crowdfunding platforms like Kickstarter allow anyone with a vision, including entrepreneurs, to raise money for their project or venture.

A business startup seeking capital through crowdfunding will require the business owner to share their business goals and objectives with a large group of people in hopes that multiple people (the crowd) will help fund their request.

These campaigns take lots of marketing effort, but the end reward, should you raise your funds, is startup funding and validation of your business idea by many potential future customers for your business. It’s worth noting that equity crowdfunding may be a more accessible funding option than angel funding or venture capital for businesses looking to raise up to $5 million.

8. Line of Credit

Business lines of credit work a little differently than business loans: rather than you getting a lump sum of cash up front, you are approved for a certain amount of capital that you can borrow from at any time.

9. Short-Term Financing

Another option, especially if you don’t qualify for traditional financing, includes short-term loans. These tend to have-you guessed it-short repayment periods, typically of a few months to a couple of years. They may best payday loans in Mckenzie have higher interest rates than other options listed here, but also less stringent requirements to qualify.

10. Personal and Friends/Family Funding

Yes, personal funding is a viable option and is one of the ways many small business owners access capital. But using personal funds or personal loans is a gamble, and you’ll need to do a solid job of calculating all of your costs so that you don’t run out of money before the business can support itself.

Even if you use personal funds to start, we advise you to start taking steps to establish business credit right away. That way you can start to leverage business credit and access more capital in the future. The business should be able to stand on its own without commingling personal assets and credit. There are a few different options when it comes to personal funding:

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