Finding a small business start help must be the very first obstacle you must handle properly. Funding for your small business is crucial but it will not be as easy as your imagination. Even when you have been running a business for a while, you might find it difficult to find a small business loan. It might be harder to find funding for your small business startup. Yet, there will always be some options you can try.
According to a survey, many small businesses use credit cards for small business start help. This option of funding is not only used for building the business but also for expanding it. Why do many small business owners use credit cards? It is convenient and easy to use a credit card for funding your business. Yet, you have to be careful with this choice because you might have to deal with expensive interest rates and penalties if you cannot make the minimum payment.
Of course, you can also try to apply for bank loans. This might be the most traditional financial help that you can consider for your small business. You can look for the banks that offer special programs for business startups.
Taking bank loans might be a common option for funding your small business but you must not close the door for other opportunities such as grants for small business start up or SBA loans. This option can offer you up to 90% financing of your small business loan application. The repayment terms can be up to 25 years as well. It might be more convenient for you in terms of payment aspects than the loan from the bank.
You also need to consider a kind of alternative funding method for your small business. crowdfunding is not a new thing for many people these days. You should not remove this option from your funding list especially if you have a big potential supporters’ network. You can find crowdfunding platforms based on donations. It means that the supporters can only donate instead of investing in your small business.
Friends and Family
Of course, you can also get the funds from your family and friends. You can try to pitch them to invest in your business or lend money to start your business. It is important to keep the pitch specific and professional so the personal relationships with your family and friends can be preserved while you can also get the small business start help.