Looking to get your business idea off the ground in 2016? The first question you need to ask yourself is how you’ll secure funding. From bank loans to angel investors, you have a lot of options to choose from — but not all are created equal.
1. Community banks
Banks are notorious for rejecting small business loans, especially for new companies. Nonetheless, plenty of business owners continue to apply. Why? Because many banks offer low interest rates — a huge draw for money-smart entrepreneurs. If you’re convinced a bank loan is the best way to fund your new business, consider community banks. Time reports that, in April 2015, small bank lending approval rates were 49.6 percent, while big bank lending approval rates were just 21.7 percent.
2. Angel investors
Did you know that Google and Yahoo got their start with funding by angel investors? An angel investor is constantly on the lookout for the next big idea. If your company is chosen by an angel investor, know that you’ll be expected to give some share of equity in your business. Learn more about angel investors here.
If neither of these options is for you, consider factoring with RMP Capital. If you have invoices with strong, credit-worthy clients, and experience in the industry, we’ll front you the money on invoices to help you close the pay gap between billed jobs and payments to suppliers. Our creative funding services allow you to effectively grow your business while we handle speeding up your cash flow. To learn more about factoring, watch our animated video: