Finding capital to fund a startup is often the biggest hurdle that new entrepreneurs face. They write a great business model and develop awe-worthy products or services and now all that is needed is large stacks of cash to get the business off the ground. The most traditional methods of attempting to secure business assets are by applying for bank loans or credit cards. However, such options aren’t always a guaranteed approval, especially if the credit report is less than impressive.
Nevertheless, there are many other ways to get money that is needed, below are five ways to get money to fund your startup.
5 Ways to Get Money to Fund Your Startup:
- Installment Loans: An installment loan is a type of short-term loan that doesn’t discriminate on credit score. Installment loan companies such as Blue Trust Loan offers secure and confidential loans that can be directly deposited into your checking account as quickly as the next day. To be approved, you have to show a verifiable source of income, and you have to have an open checking account and be at least 18 years of age. You can choose to pay back your loan in weekly installments or bi-weekly, semi-monthly or monthly. The Blue Trust Loan LinkedIn page shares more information on the company and loan requirements.
- Crowdfunding: To raise money via crowdfunding you will have create a profile-pitch of your business on a crowdfunding site and then set the maximum amount of money that you wish to raise. Once your pitch-profile is live, people can view and give as much as they want. Most crowdfunding sites allows you to offer rewards as incentives. Some sites allow you to keep any amount of funds that was raised even if it was less than your maximum, while other sites only fund you project if the amount you set or higher was met.
- Friends and family: The best way to avoid negativity while borrowing money from your loved ones is to pay back your debt in the time that was agreed on. You need to treat this loved-ones loan with professionalism and respect – draw up a loan contract that states the amount of loan and the payback duration and then make every effort to honor it.
- Find angel investors: Angel investors are investors that are willing to fund your projects in exchange for a percentage of the company. Many angel investors become involved with the start-up by offering their expertise and valuable connections.
- Honest hustling: Honest-hustling can be a great way to accumulate money to start your business. The practice refers to doing odd things to make money such as working longer hours at your day job, selling off the stuff you don’t use, freelancing, taking a second job and other such things.
If you believe in the concept of your business, then you owe it to yourself to try to make it a success. Money shouldn’t stand in the way of your dreams – find the way to get the collateral you need and then use the funds wisely and pay it back long before it is due.