You might have the best idea for a business possible, but without funding your idea is going stay as just an idea. Banks are usually the first place that new entrepreneurs go to get their capital, but, unfortunately, brand-new businesses are very unlikely to be accepted for a bank loan, which leaves you back at square one.
You need to think bigger than a bank loan and come up with some other way of getting the cash that you need. Still stuck for ideas? Well, you’re in luck; Here are four alternatives ways that you can use to fund your small business.
It’s always sensible to have some money saved in the bank for an emergency. Just taking five to ten percent out of your wages and putting it in a savings account each month will quickly add up. If you do this, then you will have a nice chunk of money ready and waiting for you when you need it. Although your business might not necessarily count as an emergency, as long as you know what you’re doing, it’s an investment that you should take a risk on. At least if you use and lose all of your own money, you won’t get into debt doing so.
Your family and friends are there for you 365 days of the year, so why wouldn’t they be there for you when you need a loan? There is no harm in asking a loved one if they can lend you the cash to get your business off the ground. Just be aware that they might say no, and don’t take this rejection to heart. Although this method usually won’t get you into debt, it can put a strain on relationships, so bear this in mind before you take the risk.
Crowdfunding websites, such as Kickstarter, are incredibly popular these days, and have been shown to help plenty of small businesses out in the past. They allow many different types of people to make smaller investments into your business, rather than you having to find one large investment. Just make sure that you always read the terms and conditions thoroughly, as some of these crowdfunding websites require you to hit your target before getting any money, or will charge you fees before you get your money.
Quick Cash Loan
Online loans are becoming increasingly more popular these days, which shouldn’t really be too much of a surprise. After all, the applications are relatively short and quick, you have the convenience of being able to apply online, rather than book an appointment at the back, and once you’re accepted, you get an instant cash advance. Just be aware that these loans usually have a high-interest rate, so make sure you are always making your payments on time, or you could get in a lot of debt.
There are so many different methods that you can use to fund your business, so don’t feel downtrodden if you’re not accepted for a bank loan. Do your research and find the method that suits you best.