Getting funding for a business, especially if the venture is new can be difficult and time-consuming. However, there are specific ways where you can have an edge and may secure financing soon. Under mentioned are the six ways to get funding for your business.
Start with Personal Investments
If you can spare some personal equity for your business, this is the best option to go for before you venture outside looking for business capital. Not only you will save money on borrowing plans, but it will also show other investors that you have faith and confidence in your venture, and it will be easier for you to secure further investments in the future.
Find Support from your Network
If you cannot cope with the immediate finances of the business and have no option other than going for funding, a good option is to look at your network of family, friends, and coworkers. For a small business, a good option is to raise capital from its circle as they may not have the collateral or ability to meet the other requirements to secure loans from financial institutions. However, take this option of borrowing as seriously as you will take borrowing from a lending institution. Make proper documents and reach out to the people you know for financing. Tell them clearly when you will repay them and what interest they can expect to make if they loan you the capital for your business.
Look out for Angel Investors
Angel investors are businessmen who carry potential investments and are keen on putting their capital as a loan to new businesses. If you have a company that is in its commercialization stage, you can reach out to these investors with your proposal and borrowing requirements. Be well prepared as these investors will not part with their money unless you show them good potential in your business with a good repayment strategy.
Venture Capital Options
These investment options are similar to the Angle investing; however, venture capital can loan a much higher amount to small businesses. Usually, this form of equity comes from financial firms or wealthy investors who show interest in providing private equity to startup businesses that have good potential for high growth. They, however, demand more return on investment and may also want to have a say in your trade.
Go for Government Grants
If you can build a valid application and fulfil all the requirements of the government to set up the business venture you can apply for a government grant as the government has loan and subsidies option for new business. What is better is that with these schemes you will get huge discounts on repayments and in some cases, you do not have to pay back at all! Sounds exciting? Unfortunately, it is difficult to get this loan as requirements are strict for many startups to oblige with for the financing. However, you should give this option a look.
Apply for Bank Loan
You can always head for the bank to ask for a loan. However, for a new business, a bank would either ask for collateral for security against the funding all with grant a small working capital with higher interest on repayment. If you have no other option you can apply for the bank loan to get some footing before you build your business, gain reputation, and bargain with the bank for better investments.
Radium2 Capital
At Radium2 Capital, we offer small business the best opportunity to succeed by securing working capital on easy repayment terms. Getting funding for a small business is not easy, and this is where the services of Radium comes in, we make financing straightforward. We have unique products that will help you get funding from as little as $5,000 to as much as $1,000,000. You can trust us with your financial needs and reach out to us online by filling over simple, no obligation application form.