So, you want to start your own business? Great! Do you have the capital for it? If not, you need to find a way to get funding for your
new business. There are different ways by which you can get a business loan quickly nowadays. In this article, we’ll look at a few options.
Fast Cash Loans
One way to secure a business loan quickly is to rely on
fast cash loans. Like its name suggests, a fast cash loan can give you an influx of cash at a faster rate than banks. However, the amount they can lend might be smaller than that of bigger lenders.
To qualify for a fast cash loan, you will need to satisfy some or all of the following requirements:
* You must be of legal age to get a loan (usually 18 years or older).
* You must be employed and submit a proof of income.
* Your bank should allow you to receive fund transfers into your cheque or savings account.
* You must have a valid cell phone number.
* You must have an email address to receive communications from the lender.
* Some fast cash lenders may require a good credit score such as a minimum of 650, while others won’t use your credit score to determine whether they’ll fund you. If you have all these requirements, qualifying for a fast cash loan could be easy. Many lenders who offer fast cash loans can be found on the Internet, so that makes it easier to find them. But before you use their services, research them to make sure they’re a legit company. Ask for testimonials and visit popular rating sites like Trustpilot to see if other people have had successful dealings with them.
Small Business Loan From A Bank
Some banks are quite strict about lending requirements. But the good news is that many will agree to small business lending. Banks are understandably wary of lending to just anyone. For that reason, you must have a stable financial record to get a small business loan from them.
If the bank waives your credit score requirement, your small business loan will typically have a higher interest rate. This means you have to weigh your options carefully before you enter into a contract with the bank.
Credit Card Loan
If you have a good record with your credit card issuer, it is possible to rely on your credit card for funds to start your own business. However, this can be quite risky if you aren’t able to repay your credit card bill monthly. So, use your credit card only if you know for sure you will be able to repay the loan on time and in full. Paying only the minimum per month can easily let your debt snowball to an extreme, unmanageable size. For that reason, you’ll have to put in extra effort to settle your credit card debt as soon as possible.
If you are good at managing your business, you may qualify for a business credit card. Keeping your business and personal finances is important for bookkeeping and to ensure that you don’t live off the business’s money. As soon as you can, hire an accountant to make it easier to monitor your credit payments and to gauge whether you have enough credit to keep your business running.
Crowdfunding
Have you heard about this before?
Crowdfunding is a fund-raising project from which you can get financial support from the online community. It’s sometimes better known as Equity Crowdfunding.
Basically, you set the amount that you need and the public will donate money towards your project if they believe in your business concept. This works if your project is something that appeals to the community and they really want to help your project take off. However, if you need substantially more in a short period of time, you need to be upfront with your ‘donors.’
Your initial crowdfunding investors may be family and friends, but eventually, you can solicit from the general public. You can find over 600 crowdfunding groups on the Internet today, so that gives a lot of support to upcoming businesses like yours.
The disadvantage with crowdfunding is that you might make business decisions that your ‘donors’ disagree with. So, there could be a tug-of-war regarding the future and image of your business. On the other hand, the people who are willing to invest in your idea are also potential future customers. By listening to their ideas and feedback, and using it to shape your product or service, you’ll prove that you care about their needs and desires, giving you a competitive advantage from the start.
Angel Investor
This is one of the better ways to get business funding. An angel investor is a person who agrees to invest money in your business in return for a share in the company.
To convince an angel investor that you are a good business risk, you must assure the profitability of your venture. To convince them, draw up a solid business plan in which you explain your vision, mission, potential market share, and strategies in detail. Also, be willing to listen to suggestions the angel investor may have to help steer your new business in the right direction. Leaning on their knowledge is a powerful tool at your disposal.
Takeaway
Getting funding for your business doesn’t have to be a headache. If you can prove you have a viable concept, lenders will be more inclined to give you the necessary funds.
Take some time to research each option discussed in this article and decide which one can work best for you. Then create your business plan and start reaching out to potential investors.
