You have a business idea that might disrupt a specific industry? Now, what do you do to make that dream a reality? In order to get the ball rolling, you need to fire up the money machine. You need capital and you have a ton of options to raise money for your business.
We list down some of the best ways to fund your business from home equity loans, business startup loans, among others:
If you have been religiously contributing to your 401k or IRA, you can do a ROBS or Rollover For Business Startups so you can use funds from these accounts to fund your startup business. Through this, you do not have to pay early withdrawal fees or taxes.
Home Equity Loan Or Line Of Credit
If you own a home with some equity you can tap into, you can apply for a home equity loan or a home equity line of credit and use the funds for your startup business. A HEL is perfect for business owners who need a large amount right away while a HELOC is ideal if you just need funds that you can draw from as the need arises.
Using credit cards, be it a business card or a personal credit card, can be a cost-effective way to fund your business. With these cards coming with rewards programs, cash back offers, and even 0 percent APR for certain periods. Credit cards can be a great tool to answer some business needs but not the ideal answer if you need a bigger capital for your business.
If you need machinery, vehicles, and other equipment, there are banks, online lenders, and even equipment dealers who are willing to give you a hand. If operation of your business will greatly depend on the machines that you need, then this funding solution can be perfect for you since you will be able to keep a good cash flow and have a budget for other aspects of your business.
Business Startup Loans
You can get a loan from the Small Business Administration to fund your business. It has programs that are friendly to underserved or newly established businesses. There are also other lenders who are willing to fund your business even when you have a bad credit score. They are willing to risk it based on the potential of your business, your current cash flow, and projected earnings.
From Family And Friends
People close to you who love your idea can also be good sources of funds. You can negotiate for better repayment terms and good interest rates especially the loan is given as a form of a support and not as a profit-earning business move.
Crowdfunding is another popular method to raise funds by asking people through an online people for help. You can return the funds in the form of a product or reward, or you can also give some equity.
If you’re not keen on getting loans or borrowing from friends, you might want to get in touch with angel investors. These are individuals willing to give you money for your business in exchange for some stake in your company.
VCs are investors that belong to a company or firm looking to fund your business for some equity in it. The funds will not be a debt but VCs want to have some control of your business.
Need business startup loans? Our team at StartupBusinessLoans.co has compiled useful information for you so you know your options as a business owner.