Ways to Get your Business Funded
Today’s number of funding resources available for business owners in this country is higher than at any other point in history. And they encompass far more than the traditional business funding avenues.
A key part of any business plan is its financial section. In it, you must detail all of those things which will attract investors and make them want to offer you funding. This includes having a riveting executive summary as well as sound financials. But when you need funding for your venture, you will also need to provide more information, such as your credit rating.
The Short Term Loan
Many of today’s businesses have short-term needs that require an almost-immediate access to cash. Where this is the case, the short term loan can be an effective solution. There are many ways to access these loans online, which has made it much easier for business to access the loans they require.
A good credit rating is required in order to secure a short term loan. However, you will also likely have to divulge the ownership of any valuable assets, as well as be able to demonstrate how you will generate a dependable income.
The Business Grant
Business grants can be a solution if you’re just starting out, or if your business is small, because it provided needed cash as well as helping you improve your prospects. This country has a host of grants for businesses that have been funded either by the EU or the British government itself.
Business (Plans) Grantscan be great for you because they have a local focus. Many of them will also be industry-specific, which can net you more money, depending on the industry your business is in. If your business provides some kind of vital service or helps people in some way, you may be more likely to be selected for funding via business grant.
If you’ve decided to go for a business grant, be aware that it can take a long time to get the cash due the application and selection process. Plus, it is a gamble that you will get any money at all. One way to go if you need quick cash could be applying for a shorter-term option whilst applying for a grant so that you have capital while you’re waiting.
Crowdfunding is becoming an extremely popular way for businesses to get the money they need. And every one is different; some require a piece of the business equity their members will generate in exchange for listing their need for cash. Others will offer loans from third parties. The ideal scenario is that both the investor and you, the business owner benefit. You get fast access to the money you need, whilst the investor enjoys a good return.
Just as with a business plan, if you’re using crowdfunding you will need to convince potential investors that your business is worth investing in, as well as demonstrate your ability to pay the money back.
Angel investors also take an equity stake in your business in exchange for capital. Angel investors will usually make their investments into a business that’s in its early stages. They can also offer you much in the way of business advice. The process is quite competitive, however, and so you must be prepared for this if choosing this option.
Regardless of the funding avenue you choose, it’s important to get as much expert advice as possible. This will help you avoid pitfalls that can delay your funding, as well as allow you to place the bulk of your focus on running your business.
Image by: Nick Youngson http://www.nyphotographic.com/