Starting my new business was a difficult task, from payroll to inventory; much money was needed to survive and to help me thrive against my competition. Currently, there are many ways to secure funding for a new venture like mine as well as to gain money needed to expand or grow an existing company. Once you secure the capital to start or grow your business, you can execute your business plan in a manner that increases your overall wealth and stance in your industry or business community.
Business Funding Options For New Businesses and Start Ups
When considering places to tap for financing, banks and lending networks like Lending Club come to mind. Although there are many loans available for startups and existing businesses, they require good credit and much paperwork to obtain. Many also require that you pledge collateral (and many times, something of great value) in order to acquire financing with secured bank loans.
Unfortunately, many businesses aren’t able to meet several of these financing requirements, so they must turn to alternate forms of funding. Some entrepreneurs decide to take on credit card debt to operate their ventures. But a merchant cash advance is what I’ve used as a great option for my funding needs as these advances are easy to get and can be obtained by any business looking for capital that expects credit card sales. I paid my advance company back through revenue my business earned via credit card purchases. From my experience, I believe that retail and food businesses can obtain quick funding rather easily. The amounts I paid back were variable based on my sales for the month, so flexibility is one great advantage to a merchant cash advance.
Besides bank loans and merchant cash advances, there are also government programs that can help small business owners find sources of funding and can sometimes provide capital to businesses in some cases. Government grants are also available and these grants are free money to help fund business ventures. They are difficult to come by, but information can be found online about the government grants that are available for your situation.
While there were many options for funding my new business, each had its advantages and disadvantages. Depending on your credit and level of collateral, you can find the right loan to satisfy your capital needs to expand or start a new business in your town. With thorough research, you can assure your company’s well-being and overall prosperity.
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