Refinancing
One of the first options many business people take in order to raise funds, especially during those tricky early days, is to refinance their home. Provided you have equity available in your property, banks may consider allowing you to increase your mortgage in return for providing cash support. You have to be realistic and confident about the viability of your business to do this, as you could end up risking and even losing your home if things do not go according to plan.
Start up Funding
Owners of newly formed companies should explore start up funding; there are a number of sources where entrepreneurs can access financing from banks, private investment or government schemes. Banking assistance normally includes loans and finance advice, while government schemes and bursaries exist to help companies get off the ground.
Credit Cards
A quick, although expensive way of accessing cash, is through the use of credit cards. Such financing can be a costly affair and unless you are able to repay the debt within a month or so it may cost more than it is worth. Definitely one to look at if you are in need of a short-term loan and are in a position to pay it off quickly.
Venture Capital
Venture capitalists are a reliable source if you can convince them of your business’s future success. These benevolent individuals do not risk their money wantonly and will demand a percentage of your company’s equity and may also charge a monthly retainer. This type of financing can be costly, but if you have an idea that is ready to explode onto the marketplace venture capitalists can be a good source of funding.
Investors
If your business has wide appeal and looks certain to succeed, you may find investors out there who are willing to put in money for a percentage of your profits. You can sell shares in the company for funding or offer benefits to investors who act as guarantors for loans. The benefit here is that finance can be raised without necessarily losing control of your company.
Self-funding
One possible way of funding a small project is by holding a yard sale and clearing out your old junk. This may be an excellent idea for the small business looking for funds to get an idea off the ground. Selling off old books, clothes and unused gym equipment, for example, will not only clear a space in your home, but also provide much-needed funds.
However you manage to secure funding it is important for companies to continue growing. Consistent growth and success lead to more sales and a rise in profits. The more profitable a company appears to investors the easier it is to attract finance and customers.