You have decided to plunge into the murky waters of entrepreneurship and try your hand in generating wealth. You are armed with great vision, supportive friends, and family members. However, you don’t have enough money to kick-start your business. You are not alone; sufficient capital is the biggest challenge that faces all new small businesses.
The good news is that alternative lending has grown in the recent years. conversely, entrepreneurs are still finding it hard to business to locate business loan options. Understandably, who would want to lend their hard-earned money to a business that isn’t generating revenue? That’s why we have compiled some financing options for you to consider.
Friends and family
the most common and perhaps the easiest to get funding for small businesses is to get a loan from friends and family. You may need to convince them to support you, but you can be sure that they can be more charitable and sympathetic than commercial loans. Trim the list of your friends and family members to those that will support your ideas and stand with you.
Credit cards offer another option for small businesses to get funding. However, the credit cards are another expensive to finance your enterprise. Especially if you have bad credit because those who issue credit cards calculate annual percentage based on personal credit scores.
Crowding is the latest way for small business to raise capital, thanks to crowding sites such as Indiegogo and Kickstarter, which help to raise funds online through the online platform. Many other avenues are opening up such as equity crowd funding which give you a chance to tap into a wider of investors supporting small enterprises in exchange for equity.
You can also tap into grants by government agencies and private foundations to raise funds for your start-up. They are not easy to get, but if you want them that much, you shouldn’t mind putting in more efforts. The Internet might be a good place to search when looking for grants.