Are you planning to start a new business or fund the growth of an existing one? There are many ways to source capital for your business and ensure it runs smoothly. It pays to be wary though, as there are scammers out there and technology makes it all too easy for malicious activity to occur, and the last thing you want is to be taken advantage of. Here is a guide on ten times tested ways to raise capital for your business, which will help you remain on top of your establishment and keep working towards your dreams.
1. Rapid loans for your business
One reliable way of getting capital for your business is through Rapid Loans Business Finance. They are devoted to offering convenient online applications and faster cash disbursements for approved businesses. The application takes just a few minutes, and consultants work hard to assess your situation and come back to you in a timely manner and if your application is approved, you can receive funds usually within 24 hours for your next project.
2. Online personal loans
Such a source is reliable and can help you find the most attractive interest rates through online comparison websites and good old fashioned research. Moreover, there are many benefits associated with such a capital source, as fewer documents are required, and you can choose the terms or payment mode. Before applying for a loan, you need to have all the required documents and proof of a business to make things easy. Bank loans remain to be a popular and reliable source of capital for a business startup, but there are many alternative online lenders to explore as well. Expect nothing but the easy application, easy personal loans, and the potential for approval within a few days.
3. Advance payments
You can also choose to fund your business project by requesting advance payments from your customers. Such contributions show that your customers are committed to participating in your business growth. This strategy can make it easy to grow a business fast with limited resources. All you need to do in return is respect your investors and continue creating new business opportunities.
4. Ask for money from friends and family
It sounds outrageous, but the people close to you can help you start a business by giving you financial support. Their support is in labor, which still saves you the money needed to run a business. However, if this is your choice, you must choose friends and family with business skills to help you make the right choices. Agree on the type of funding you will use for your business, for instance, business loans or investment capital raising.
5. Bootstrap your business
Bootstrapping your business is an easy way to fund your business without relying on external factors. This process involves borrowing money without incurring any interest. However, it would be best to show your lender that you are a committed investor willing to risk your money with this source. You can then find a primary money lender to support your business and then pay the actual amount without interest.
6. Savings
If you have been saving money, you can use it to start your business. This strategy works well when you want to start a small business to make all your dreams a reality. Your savings alone might not be enough but can help you start budgeting and looking for online lenders if necessary.
7. Bank loans
Besides rapid loans, you can choose banks for the short term, mid or long term financing. There are several banks ready to finance all asset needs, such as capital and equipment. Understand that with banks; they assume your establishment can generate enough revenue to cover all interest rates. You have to assure repayment, the same way you would for a mortgage. Also, the bank may provide some flexibility if you can pay your loan early and terminate your contract. It’s worth asking if this is an option for you, or if there are fees for an early pay out.
8. Crowdfunding Campaign
You can start an online campaign selling some products and allowing people to contribute more to the sale and fund your plan. You will connect with like-minded people and raise money to fund your business. This process is easy, as all you need to get started is a video on what your business has to offer.
9. Venture capitalists
If your business is established, you can also raise money from people who want to invest in more mature companies. There are many structures that work in favour of both the business and the investors, and it could be worth seeing a financial advisor to see what you could pursue. If your business meets all requirements set by investment firms, you could be in luck.
10. Find an angel investor
Nowadays, many things are done online, including finding a reliable capital source for your business. Angel Investors are willing to fund your business idea at a low return rate. Partnering with them allows you to run your business successfully knowing you have the capital behind you to do so.
By: Raymond James
About the Author:
Ray is a sought after thought leader and an expert in financial and money management. He has been published and featured in over 50 leading sites and aims to contribute articles to help novice financial planners. One of his goals is to impart his knowledge in finance to educate and help ordinary people create and achieve their financial goals.