If you are a small business owner wondering how you can finance your small business, there are limitless options you can obtain today; however, the only challenge that remains is to choose one that is right for you.
By Chris Richardson
Many business owners tend to go for standard bank loans as their sole source of financing their businesses, but there are plenty of other methods which are even more appropriate for small businesses than traditional bank loans.
Note that as John Clerks a financial adviser at Essay Geeks service states that “It doesn’t matter whether you want to start your business or you want to boost a running one, getting the finances to do so can be a difficult task”. Thankfully, we will help you with some of the resources.
In this post, we are going to highlight some of the favorable small business funding resources so that you can get a better feel for the opportunities that exist.
This is a project funding site that was founded in 2009 and has funded thousands of projects. As a crowdfunding site, Kickstarter allows business owners to set up their profile pages that describe their businesses and initiate a fundraising. People who donate are given some rewards such as being allowed to test a newly launched product of the business.
2. Kiva Zip
Kiva Zip as a non-profit program that provides business owners with access to capital worldwide. The program has raised more than $1 billion from more than 2.5 million donators. The good thing about Kiva is that your character is what determines whether you get financed or not and not credit. It is the best community-based lending program currently. Kiva Zip allows small business owners to access funding where other lenders may not.
Another crowdfunding solution where small business owners and investors come togetherthat has a membership of more than 200,000 business people and investors is the Crowdfunder. This funding resource is aimed at financing business startups and features a great pool of investors. This crowdfunding option does not take a percentage of your earning but charge a certain monthly fee.
If you want to get a small business funding then you need to use Kabbage. Here, you will get quick access to your business working capital by following a 3 step procedure.
You first need to submit your business funding application; it will then be reviewed according to performance so that Kabbage can assess the amount you can access and then you get your working capital. Kabbage is one of the better resources to fund your small business since they don’t focus on your credit scores but also look your other money transacting platforms such as PayPal and other e-commerce sites to know if you qualify to get funding and the amount you can access.
5. Small business partners
Reaching out to someone to start a small business with can be a good source of funding. Your partner can be an employee of the small business or not.
Business owners can also get small business loans from banks, but they will be required to provide a track record as well as guarantors of the loan being applied for. Banks are sources for both long-term, mid as well as continuing business funding. Business owners can access working capital, real estate capital as well as equipment capital from banks.
7. Business owner’s savings
Another way to fund a small business is through savings. However, this method is ideal for business owners who can afford to save to start a small business. The best thing about this method is that business owners have complete control of the amount they can access and there is no justification to investors.
8. Family contribution and friends
This is a common method business owners can access funding for a small business. You can ask family members and friends to fund you for your small business startup. However, this method is sometimes risky since if things don’t work your way your family members and friends get affected.
In this funding resource, business owners can lease equipment to get started via finance firms.
Another crowdfunding option that vets small business owners as well as investors during and until a funding application is completed. Small business owners create their profile pages then Onevest helps to create a line of communication with investors.
11. Customers and traders
Suppliers and customers can be great funding sources for small businesses also. Customers can finance your small business by paying in advance for their orders. Although this funding option is sometimes hard to obtain, however customers can pay in advance if they are in need of your products or if you provide them with unique products.
12. Funding Circle
Funding Circle is another source of funding that has financed more than 35k small business startups from funds that are donated by community of many investors from people, local government and many other institutions. However, most beneficiary of this funding source are UK and US business owners.
13. The Lending Club
Lending Club is also another funding source that has been used by many consumers and business owners. The Lending club site follows a peer-to-peer strategy thus beating traditional banks and this approach has made it to continue to dominate the business loan industry.
Another great funding source for small businesses that offers short-term finance is the FundBox. As a business owner you just need to create your profile page and enter your unresolved invoices and FundBox provides you with money so that you can pay for your outstanding invoices.
15. PayPal working capital
PayPal offers business owners with a working capital that can be repaid as your business grows. PayPal loan is repaid as you continue getting your money from your customers. With PayPal working capital, you get flexible payments, immediate funding as well as a one affordable fixed fee.
There you have it; 15 Financial Resources for New Small Business Owners. If you want to start your business by you are wondering where to get your startup funding, feel free to check on the above-mentioned resources.
Chris Richardson has been working as an editor at a publishing agency in London, UK for 5 years. He is also a professional content writing expert in such topics as career growth, self-improvement, blogging, and technology innovations. Feel free to connect with him on Google+