Starting up a new business venture is an opportunity to move up to success. But not everyone would have the drive to do so. The first reason is money. Raising up enough money to fuel one’s business is no joke. If you only open your eyes, you will realize that how to find money for your business is not as difficult. In fact, the amount of choices of available could get overwhelming. Here, we will give you ten of the most amazing paths toward business financing or simply finding money.
10. Get a revolving line of credit
In this case, you will pay your bills with your credit account, which in turn will be paid once your goods or services are paid. The thing is, this is not as easy to get as other forms of loans. You need to have a flawless credit history and/or an impressive and convincing business plan to assure the bank that you will be able to return back the money you borrow in time. If you are sure your business plan is going somewhere, you can try out this kind of credit account so you will never have to worry about financing it and paying off the daily expenses to run it.
9. Use your tax refund
Your income tax check is a nice source of money that you could use to fund a business. Although it is not as big, you can put the amount into good use by using it for your investment.
8. Get a job
A part time or contract job is one of the easiest ways to draw your business money. You can get a job for the meantime you are still preparing the nitty gritty of your business and while there, earn a decent amount that will help boost you capital. Short-time and relatively easy work like serving at restaurants, working as a private shopper, doing the laundry for another, and babysitting are all good ideas.
7. Get a partner for your business
Generating the amount of money you need for your business to stand is easy if there is someone helping out. You can partner with family or friends who may have the same interest as yours and who would want to get a hand in fueling your business venture. Two heads are better than one so expect the task of finding money to be easier if you share it with another. Then again, this could be a disadvantage to those who do not like working sharing the entire business with another. You cannot just kick out a partner, not even after you have paid back his/her investment.
6. Buy and sell
This is a business on its own but you can also do it on the sidelines to finance a different venture altogether. You can buy items on sale and then re-sell them for a profit. The turnaround can be measured, depending on how interesting or how much of a good buy the product is. If you are a smart shopper and you are good at discount hunting, you can certainly draw money from this simple but effective scheme. You can also sell other people’s stuff and be paid with a commission in return.
5. Put out your possessions or valuable items for sale or for lease
This is a nice way to have money reserves. When selling stuff, make sure that they are still functional only they are no longer useful to you. Your stock of valuables just lying around in your yard can generate a good size of money that will help you start up your new business venture. In case of leasing, you will put out equipment for rent for a specific period of time at a flat rate. When the contract is through, the borrower could either pu8rchase the equipment at a fair market value, renew the leasing contract, or return the equipment. Through leasing, you will have a sure monthly income that you could use for running your business.
4. Get a family loan
If you do not want tension between family members to rise, you will go away from this idea. But if you have a close-knit clan that’s willing to help each other, this is a nice path to follow. Family loans are easily approved because there will be different person backing up to pay the debt back. Once you are able to obtain this, make sure you treat it like any other loan. Pay it on time, pay it off as quickly as possible.
3. Get a microloan
Microfinance is pretty helpful if you are just starting a small entrepreneurship. This is basically about small business loans that will help proprietors get the money they need for a working capital and to pay for furniture, supplies, machinery, fixtures, and equipment. The average microloan is about $10,000. That is enough for startup companies to take shape.
2. Apply for a new credit card
A credit account with low interest and a decent limit is one of the easiest ways to get your hand on easy cash. The catch is, you will be charged per purchase so make sure to use your credit card sparingly. You should also pay off your debt as soon as your business starts to roll. That is so, you will be able to draw money again from your credit account when you need to.
1. Get a startup loan
Banks offer startup loans to help businesses take off. Just make sure you qualify. Afterwards, have a go at getting it by going through the application process. If you have no valuable possession, this can be hard to get. If you have, putting them at risk as collaterals can be hard to decide on. But getting into business is all about taking risks. This is your rite of passage to the business arena. Be aware that it can either go two ways – success or failure.