This is a continuation of Part 1.
Crowdfunding can be a great alternative to traditional financing options. Crowdfunding allows you to raise money from the public to fund a cause or dream. Although you don’t have to actually bring these people into your business as traditional investors, they can give you money allowing you to have the capital necessary to fuel your endeavor.
Crowdfunding has grown tremendously in popularity over the last several years from entrepreneurs, as well as individuals, going directly to the public to solicit the capital and support they need to reach their goals.
It has become a wonderful way for people to have another option to source funds. This can work particularly well when there is a compelling story or need connected to a business or cause of which the public can emotionally sink its teeth into. It is not always the best option for ordinary businesses and companies that are just in need of capital to grow, but it has certainly created its own lane in the world of alternative financing which is sure to be around in the years to come.
4. Use Credit Cards
Using credit cards has been a common practice in obtaining capital to fund a business. Traditionally, many entrepreneurs are forced to use them when all other options fail. But when used strategically, credit cards can be a viable option to support the growth of a business.
With a variety of promotional rate options and balance transfer incentives, often times this can be the easiest and fastest way to option funding for an ever growing business.
There have been tons of companies built on the backs of their owner’s personal credit cards as well as business credit cards. When entrepreneurs are in the trenches of growing their businesses by all means necessary is what they apply to see it through.
5. Apply for a Personal Loan
A personal loan is another option to access capital for your business. If you’re unable to get a business loan, you could potentially be a candidate for a personal loan depending on certain factors such as your income, credit history and assets just to name a few.
A personal loan can be obtained from a credit union, financial institution or a private lender. But you want to make sure you are clear about the terms of the loan and the repayment plan before obtaining it.
If you own real estate that has equity, you can potentially take out an equity line that will tap into the available equity in your home. Be mindful that if you take out a home equity loan, unlike a personal loan, your home will be used as collateral for it.
Home equity loans, like credit cards, allow you to access your available funds if or when needed. This can be a tremendous benefit for business owners who will need ongoing access to funds at different points in their growing businesses.
Although the goal of a business owner is to make their business profitable, it is often a process that takes considerable time for most businesses to get there. So, having access to capital along the way can assist you in building and sustaining the ultimate business of your dreams.
There are a variety of options when looking to fund your business. The reality for many is that it will be some combination of the strategies described in this article. Whatever option you choose, it is always important to consult with the appropriate legal and financial expert to make sure you are choosing the best option for you, your business and ultimately your bottom line.
For more information on the Top 7 Steps to Grow Your Business to Multiple Six-Figures and Beyond, Click Here.
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