It’s always difficult to secure the financing you need for your startup company, or for business expansion and growth. In order to help you secure the financing you really need, the list below has been compiled, so that you can consider opportunities that may be available to you.
Invoice Factoring
This form of financing will put cash in your hands immediately, in exchange for selling your company invoices to a factoring company. You will receive something like 80% of the face value of those invoices, and the remaining 20% after the factor collects the invoices from your customers.
Use Your 401(k)
While this may not be the most desirable option, it can certainly provide you with funding, especially if you’re in a pretty dire situation in terms of your current business financing.
Business Credit Card
This can be a very viable option, assuming that you have sufficient balance on your business credit card to handle whatever purchases or expenses you need to cover.
Conventional Bank Loan
Not very many applicants are actually approved for conventional bank loans these days, but you may be one of the few with a good credit score and a good business profile who is eligible for approval.
Pledge Against Future Earnings
A new online marketplace has sprung up which allows you to pledge future earnings against loans made to you by any investors who become aware of your need for financing.
Crowdfunding
This is another online option which can generate cash fairly quickly. It calls for you to set up a website where you explain your company’s purpose and objectives, and calls for investors to support your business.
SBA Loans
SBA loans are a little more difficult to acquire, but they are very appealing to banks, since they are backed by the federal government up to a certain percentage of the loan value.
Angel Investors
You may be able to convince a private angel investor to finance your company, on the promise of receiving a significant return when your business becomes super profitable.
Microloans
There are various sources, for instance federal government loan programs, which offer microloans to businesses in various categories. You may be eligible for one of these, in which case it would be an excellent source of financing.
Friends and Family
When all else fails, you may be obliged to tap into family and friends to secure the financing you need. Keep in mind that this is always a risky proposition, and a good way to lose friends if your business venture fails.
Need Financing for Your Business?Â
Most small businesses are in need of financing at some point, either for day-to-day operations or for business growth. If your business would benefit by having extra working capital, contact us at Star Capital USA to discuss some options which may be available to you.
