A lack of financing will put an end to a new business idea faster than just about any other factor.
Luckily, there are plenty of ways to fund your business idea. The trick is finding the right one for your business.
Keep reading to learn 7 business financing options that can help you fund your business dreams.
1. Utilize Credit Cards
If you’re trying to figure out how to finance a business with low overheads, a credit card might be a good option.
While credit cards can be dangerous if you need large sums, if you just need to make ends meet and pay a few upfront costs, they can help close the gaps. This includes inventory financing, startup costs, etc.
Choose a credit card with cash or point rewards. You’ll earn free money on your business expenses that you’ll be able to use later on.
If you know you won’t be able to pay off your credit card balance within a few months, it’s best to search for other financing options to keep from ruining your credit score.
2. Crowdfunding
If you have a business idea that’s unique and that you think the public will love, you might want to try out crowdfunding!
With a catchy profile and a clear business plan, you might just get the funding you need.
3. Take a Partner
When you have a great business idea, it can be difficult to give up any control.
But when you’re stuck trying to figure out how to get capital for a business, taking a partner might be the best option.
4. Cash in an Annuity
If you receive an annuity from a settlement in a lawsuit or other source, you likely receive a monthly sum that’s set to continue for many years, or perhaps the rest of your life.
While this income is useful, it may not be enough to fund your business.
Luckily, there’s a way around this. By cashing in an annuity, you’ll receive a lump sum that’s perfect for financing a small business.
5. Tap into Your 401K
If you have a 401K with decent savings accumulated, you might be able to tap into it to fund your business.
This is a complicated, tricky process. Make sure you know the rules and guidelines you need to follow. Otherwise, you may end up affecting your future financial stability.
6. Small Business Loans
The U.S. government helps support small business owners by offering loans designed to help them launch their new business ideas.
The Small Business Administration, or SBA, provides loans to help small business owners buy equipment, refinance debt, pay a mortgage for a brick and mortar location, and more.
7. Contests
Does your new business include a cutting edge product, new tech, or other groundbreaking ideas? You might be able to enroll in a contest to win funding for your big idea!
A quick Google search will help you find contests in your industry you may be eligible for.
Choosing the Right Business Financing Options
The need for business financing options doesn’t end once your business is launched.
Keeping a new business going depends on cash flow. When customers don’t pay their debts, your bottom line suffers.
Check out these tips to learn how to get small business clients to pay up on their debts.