Got A Business Idea? Know Your Funding Options

Got a business idea? Ready to run with it? Funding a problem? You aren’t alone. Small business funding can feel like it’s out of reach. But not to worry! You’ve got lots of choices. So isn’t it time you knew your funding options?

Dream big, live big! If you’ve got a great idea don’t let lack of money hold you down! Don’t let your dreams turn to dust just because funding is a problem! History shows that those with perseverance and creativity see their dreams become a reality.

Interest rates are low and there hasn’t been a better time to borrow in a very long time. But too often small business finds themselves shut out from traditional forms of financing. So what’s a small business owner to do to get start up funding? There are dozens of alternatives.

Use the old barter system. If you don’t have cash on hand bro expenses you can always work on exchanging goods and services for things you need. It’s a great way to get things you need and many companies are willing to play!

Never be afraid to ask for help from your employers. People want to keep their jobs and many will be more than willing to help. Let them invest in the company. This gives you working capital and them a feeling of ownership. It’s a win win.

Find a private investor who is willing to put money up. Some investors want no part of the actual running of the company while others may want a share. There are plenty of investors out there if you just look!

Never be afraid to ask family or friends for help. It’s a bit awkward but if your business plan is solid many of them would love to get involved. Just be sure you are willing to deal with the consequences if the idea falls flat and you parents are left with their nest egg lost. It can make for some strained relationships. Much better if you can get a group of relatives each to invest small amounts so nobody would loose their life savings.

Don’t forget to use supplier financing. Many suppliers offer their own finance terms which can give you anywhere from 30 to 90 days to make payment. This allows you some time to move the product and then pay. It’s beneficial to many companies.

If you’ve got credit cards use them! It’s got less red tape than any other type of financing. Yes you are going to pay a higher interest rate but you aren’t going to have any assets tied to the funds either. It’s definitely worth considering!

They are also excellent for gap financing. This means you sell the goods on a 30 day account but you owe the supplier now. So you pay the supplier with your credit card, then when the customer pays you, you pay the credit card. It’s a lot like bridge financing.

The surest, safest, and cheapest way to start a business is to keep your day job and start your new business in your spare time. That way you still have your regular income to live off and you can take the necessary time to nurture your business into a successful full time venture.

Be frugal, often referred to as bootstrapping. Figure out ways to start your company that require little cash investment. For example start your business in your home, print your own business cards, and use the net for advertising. There’s all kinds of ways you can keep your costs down by being creative and doing things yourself.

You might also want to look for specialty lenders such as Community Development Corporations. They tend to be more willing to lend money to small business. In fact one of their criteria is that traditional banks have turned you down. Just make sure you understand the conditions attached to these loans because just as fast as they help you they can sink you by calling in a loan unexpectedly.

When cash flow is low do what the big boys do, lease. Leasing requires little down and a good credit record. That way you can obtain the equipment you need for your business and simply make the monthly payment. It may also have some tax benefits for you, but check with your accountant.

These are just a few of the alternative financing options available. Remember you can combine them as you need. If you’ve got a great business idea and you know your funding options, there’s nothing left to stop you!


Deon Melchior is the Editor and Publisher of Article Click. For more FREE articles for your ezine and websites visit ArticleClick.com. Article Click is a free content article directory. This means that as a publisher you may reprint the articles that are included in our site, as long as the article is unedited and the author box is included with it's live hyperlinks.