Running a small business isn’t easy. And when it comes to financing your company, you have a lot of options to choose from. Don’t feel overwhelmed! We’ve outlined three ways to fund your business below:
The first idea that probably popped into your head is a small business loan. If you’re looking for a lot of money at once, borrowing might be right for you. However, keep in mind that nationwide banks only approve approximately 17 percent of small business loans. If your credit isn’t where it should be, a loan may not be a viable option.
Companies like Kickstarter and Indiegogo are all the rage right now. They give you the tools you need to crowdfund, a relatively new way to directly appeal to the masses for funding. However, if your business doesn’t have a sexy or relatable story, you might have trouble finding support.
Factors can help you unlock cash within your business by speeding up your accounts receivable. If you’re used to waiting up to 90 days for payments from your customers, you’ll find factoring to be a huge help. With the influx of cash, you can have to ability to expand your operation, take advantage of early payment discounts from suppliers, or purchase that piece of equipment that could take you to the next level.