Top 5 Ways Small Businesses Can Borrow Money
Setting up a business is a great way to earn a sustainable income. However, if you’re still starting out, you need to have a capital.
There are some business owners that have already saved money for their venture, but there are also some people who do not have enough capital to kickstart their dreams.
Fortunately, there are many ways to get some money. In this article, I will talk about the 5 ways small businesses or startups can borrow money.
If you’re still new and you require some capital, getting money from angel investors will do the trick. Angel investors are people who help startup companies and businesses and they require about 20-25% of the total shares.
Despite their willingness to help your cause, you may want to be prepared as some investors will only pitch in if they know that your company is going to flourish in the years to come.
One way of attracting angel investors is by being highly knowledgeable about the product you’re trying to put out.
Crowdfunding is another great way to get some money for your business. Platforms such as Kickstarter and Indiegogo have been helping small businesses take off by providing funding for them.
The way this works is that you use their platform and have people pledge their help to you (in this case, their “help” is something monetary).
If your venture has something to do with creativeness (art, books, etc.) or technology, you’re in luck because people from Kickstarter platforms are willing to help businesses in this field.
Small-Business Administration (SBA) loans are also there to help people who are still starting out in their business.
The SBA Loan is great because the money that you get is secured. Furthermore, you can apply for this type of loan if you have a very good credit score.
However, there are some guidelines you need to follow. Some of which is that your business needs to qualify as a “small business” and that you need to let them know what it is all about (like what types of products are you selling, does it fit into their criteria, etc.)
Cash Advance Schemes
Cash advance methods have been all the rage these days. You can get money as fast as 60 minutes and their repayment terms are flexible.
This is also convenient as well because there are storefront lenders (in which you can get money locally), and there are also online cash advance programs that are easy to apply for as well.
Just make sure that the lender has a license so that you are assured that the transaction is legitimate.
Home Equity Loans
If you do not have a pretty good credit score, but you still want to push through with your biz, you can apply for home equity loans.
In this type of loan, you will be putting your house as the collateral. This type of loan is a bit risky because failure to pay up on time will result in the bank having the rights to take your humble abode.
There are many ways to borrow money for your business. But, if you’re starting out and in need of a quick way to get some buck, you might want to try the online cash advance method first.