Do you own a small business? Could you use a little cash now and then to cover payroll, day-to-day operational expenses, expansion, marketing, inventory, and more? We all need help here and there. But what can you do?
From hiring staff and buying goods to renting production or office space, you need money to run a small business. Unless some benevolent relative left you a nest egg or you’re independently wealthy, some funding will likely be necessary along the way.
What kind of assistance is there for funding small business owners when they need it? Let’s find out.
You’re less likely to have a crowded warehouse and/or make too many products if you pre-sell your products. It’s a great way to make money if your business is based on a single product and its sales.
It’s true. For entrepreneurs and businesses, financing and monetary rewards are sometimes offered by organizations through contests.
Loans from Family and Friends
There are numerous pros and cons, and it can be tricky, taking money from family and friends. Before using a loan from these people, make sure you scrutinize the situation closely and have everything written and signed.
Financing From a Vendor
With one or more of your vendors, you may choose to negotiate longer payment terms if the sale of your product determines whether or not you can pay your bills. Before implementing penalties and late fees, 30 days may be given for payment on invoices by some vendors.
Finance Purchase Orders
So a business can get the materials needed urgently, an advance is essentially extended by an organization that finances purchase orders. Once the goods are sold, the money is paid back.
Keep in mind that unfortunate consequences may arise, but if you want to take out a second mortgage, or are willing to refinance your home – or if you have significant savings – personal financing may be an option.
For individuals who might not ordinarily qualify for a bank loan on a traditional level, some institutions grant micro-loans. Note: Nonprofit organizations are frequently the benefactor in this instance.
SBA (Small Business Administration)
So the small business sector can grow and succeed, a vested interest has been shown by the United States government. To help entrepreneurs get started, numerous small business loan types are offered by the SBA.
Venture Capitalists And Angel Investors
Angel investors and venture capitalists are somewhat similar. If an up-and-coming, young business has a high potential for monetary returns and growth, venture capitalists and angel investors may want to invest in them.
In exchange for their investment, a share of equity may be asked for by venture capitalists. In the direction of the company, however, they may also want to have a voice.
Always on the lookout for the next great business investments, angel investors are different from other funding option types. Angel investors have funded some of the biggest companies today including Yahoo and Google. Some share of company equity will likely be required if you take money from an angel investor.
With the general public, many entrepreneurs, inventors, etc., especially over the last couple of years, have created crowdfunding sites for the funds needed. Some of these include Fundable and Fundly, Rocket Hub, Indiegogo, and Kickstarter. Your goals and needs will help to determine the right platform for you.
Alternate Sources for Loans
Lenders such as these fall just outside the perimeters of government institutions or banks. Make sure if you’re doing business with one of these alternate lenders, they are legitimate. Be sure to investigate all of the conditions and terms.
Need Funding for Your Small Business? Contact VIP Capital Funding
Turn to VIP Capital Funding when you need small business funding. We offer early prepayment discounts on flexible business loans. With minimal paperwork, we can help to facilitate substantial amounts of working capital. When you need help funding your small business, before you turn to someone else, confer with us.
For early prepayment discounts, no upfront fees, a tax deductible interest rate, and more, speak to one of our representatives at 800-735-7754 or email us at email@example.com.
You can also hit the “Apply Now” tab on our homepage and use our convenient online form to get started.