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Seven Sources of Funding Your Business |
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Submitted by Rosemary Lane
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Are you all ready and raring to go to launch your small business, but still lack that financial boost? There are many ways to get the capital for your business idea. I have here several really good sources for finding the funds to get your business started or to make it grow.
1. Family and Friends
Some people are lucky they can borrow money from friends or family to start up a business. Compared to credit cards, this doesn't put your credit rating at risk, but it surely can put your family reputation on the line.
2. Government Loans (SBA)
This is short for the U.S. Small Business Administration, a government agency that helps Americans start and manage small businesses by providing loans, disaster assistance, advocacy and training.
3. Peer to Peer Lending (Prosper)
Prosper is an online auction site where people can lend money directly to each other. Borrowers set the maximum rate they wish to pay and lenders set the minimum rate they want. Prosper matches borrowers with lenders and manages loan repayment. Lenders can get started with as little as $50 and borrowers can receive unsecured loans up to $25,000.
4. Venture Capital Firms
A venture capital firm is a financial intermediary that pools the resources of its partners and uses the funds to help entrepreneurs start up new businesses.
5. Home Equity Loan
It is sometimes called a second mortgage. Borrow from a bank or mortgage company using the equity in your home as collateral.
6. Credit Cards
It can be tempting to start-up your business with money from a credit card. Be careful to at least make the minimum monthly payments to protect your credit rating.
7. Angel Investors
The typical angel investor is a retired business executive or business owner. Angel investors can usually provide more money than friends or family, and credit cards.
The loan usually ranges from $20,000 up to 2 million.
All of the above resources are equally useful in their own rights. You just have to know which one is more beneficial to your business and situation.
Choose Wisely.
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