When you are starting out in business, one of the major things that you need to ensure you get right is the funding. Without proper funding, there is no saying how short-lived your business might be, and that is not something that you want to happen. However, finding appropriate funding can often be quite a difficult challenge – especially as most businesses will require that funding to be ongoing, and not just a one-off thing. In this post, we are going to look at some less well-known ways to fund a new business.
- Crowdfunding
When it comes to getting money fast, there are few better ways than crowdfunding. This is where you ask strangers for donations to your cause, in return for a small gift or perhaps a share in profits of the company. These days, there are countless websites aimed to help you do just that, and using them can definitely be one of the best ways to get your business properly funded. If you want to go down this route, then you should think about what it is that you can offer those people who are willing to give you money. A real benefit of this is that you don’t need to repay the money, unlike with a loan, but that doesn’t mean that you get money for nothing, so be careful about how you treat your investors.
- Cash Advance
If you have never considered a cash advance, it can be a surprisingly powerful solution to that two or three-year bump in sales. Most businesses go through a rough patch a year after opening, and often you need more funding at this point than ever before. But it can be hard finding a decent loan or grant at this stage, so you need to cast your net a little wider. That’s where the possibility of a cash advance comes in. This is a useful alternative funding solution where you use the receipts from card processing terminals to temporarily borrow against. More and more businesses are doing this every day, and it can help to spur on any business, provided that they use the right merchant cash advance company. Done right, this can save your business from underfunding.
- P2P
Peer-to-peer lending is quite simple, and yet it is powerful because you can borrow any amount at any time, and often without very big interest rates over your head. With peer-to-peer lending, you can go online and find a lender whom you do not even know, and borrow whatever you need to from them. This can be useful particularly if your business is in something of a rut, or even if you just think you could do with a little extra something. Done right, you might find that your business comes out a lot better as a result of this type of borrowing. If you want to give this a go, have a look online and try to find the best lender you can for your type of business.
