Small Business Finance Finance Equation

Small Business Loans

Finding money for a business can be tough no matter the economic climate. It’s even more challenging to secure funding during tough times like the ones the world is experiencing now. Here are some of the best small business finance solutions for business owners.

A small business loan from a commercial loan broker is a good idea if you need a lot of money to get your business off the ground. These loans can offer thousands of dollars to get your business up and running or keep it going during hard times. Even if you borrow more than you need, you’ll find a small business loan from a commercial loan broker is one of the most inexpensive ways to fund a small business.

Crowdfunding

Crowdfunding solutions like Indiegogo and Kickstarter offer a great way to get money directly from the masses. You’ve likely heard about these platforms and how they work; someone pitches their idea, and people will pledge money if they like it. Some platforms allow you to choose flexible funding options where you keep all the money generated, while others insist that you hit your goal if you want to get anything. The downside of using crowdfunding services is that they have high transaction costs of up to 10% of the money generated.

Advance Orders

If your value proposition is so good that people are already lining up to buy your goods, you may be able to generate some money through presale and advance orders. Advance orders give you a bit of working capital and validate your business idea in a way that market research can’t.

Use Personal Assets

The easiest way to secure funding for a business is to use the money and assets you already have. You can reduce the interest rate on a personal loan by offering your car or home as collateral against the loan. Just be careful that there are risks involved with taking out a guaranteed loan, using emergency funds, or tapping into a 401(k) before retirement. When you work for someone else, your money will generally be more spread out. You’ll have guaranteed money from your wage, cash in investments, and guaranteed healthcare benefits. That’s on top of the money you have in your home and your deposit account. If you cash those investments and savings in, everything comes down to your business. Either your business succeeds, or you lose everything. That’s why using personal assets is such a huge risk.

Business Grants

Last but not least, you can get money from business grants offered by the government and non-profit organizations. Businesses that deal in high-tech and high-growth may qualify for a Small Business Innovation Research Program grant, for example. Some states offer businesses incentives to businesses too. Check out what grants, if any, are available to you.

Speak to a Small Business Finance Expert

There are plenty of ways to secure funding for a small business. The easiest way to get funding would be through a small business loan, but you do have other options. You can ap into your assets, run a crowdfunding campaign, secure a business grant, or take advance orders with a presale campaign.

Or you can do it the easier way by working with finance experts with over 30 years experience of working with businesses who require funding. We have a database of companies who are ready to help businesses with funding. Call us on 020 3086 7472 for a complimentary consultation to see how we can help you.