Every business needs capital to keep going. However, if you want to expand the business or have a lower-than-average cash flow, you might need funding. This funding can come from different sources. So, what are these sources?
Bank loans are very common because they are familiar and easily understood. The only hurdle you have to overcome is proving to the bank that you can repay the loan. This can either be through showing them a history of paying debt or having a solid business plan that takes into account the loan repayment.
Banks provide different types of business loans with the most common being secured and unsecured loans. You can also ask about Small Business Administration loans to see if you qualify.
Bitcoin Crowdfunded Loans
Bitcoin is becoming mainstream with the number of businesses accepting it on the rise. What many people do not know is that you can get crowdfunded bitcoin business loans to grow your business or handle business expenses.
There are companies that offer crowdfunded bitcoin loans. All you need to do is register, say why you need the loan, and how much you need. You then wait for backers to fund your business. To pay back the loan, you can buy bitcoin Canada- CryptoVantage makes this very simple to do. Once you have the bitcoin you can send the funds to the website you registered on so your backers can be repaid. Remember that the faster you repay your loan, the higher your approval gets. This decreases the interest rate and makes backers much more likely to find your business.
Online crowdfunding has exploded over the past few years with more businesses choosing this option when they do not have another funding source. Crowdfunding is usually set up to help businesses that need funding for a new product,
Crowdfunding offers another benefit in that it is an option to presell your product to your backers to see if there is interest. If there is not enough, then it is not worth it going through the lengthy and often frustrating crowdfunding process.
Business Incubators and Accelerators
Startups can apply for funding from business incubators and accelerators. These programs are meant to assist businesses in the early stages.
However, before you apply for funding, you need to know how they differ. Incubators nurture your business and provide training and the networking you need to get the business going. Accelerators, on the other hand, help your business take the next step, usually if you want to introduce new products or enter a new market.
Microfinance is a service for those who cannot get funding through a traditional lender due to factors like low credit rating. There are lots of microfinance options and a simple online search will help you find some near you.
Just remember that the funding you get will still be a loan and will be subjected to the terms and conditions of a traditional loan, such as interest rates.
There are some funding options you should not accept unless you really need the funding. Such options include anything that requires you to give up part of your company. However, there are lots of other funding options that do not require you to give up part of your business, are relatively easy to get, and offer enough funding for what you need to do.
James Daniels is a freelance writer, business enthusiast, a bit of a tech buff, and an overall geek. He is also an avid reader, who can while away hours reading and knowing about the latest gadgets and tech, whilst offering views and opinions on these topics.