Access to finance when you need it is essential for growing and established businesses. So where can you find it? There are more resources that are easier to obtain than you think. Your capital raising strategy may involve a combination of funding sources. Diversification is wise and a combination of debt, equity and possible subsidies is a good idea. Here are some options:
- If your business needs money to cover costs, can't wait for a normal receivables cycle and has invoices and purchase orders, consider an asset based loan.
Potential sources include your neighboring bank as a factoring financial company, which you can find online by searching for "factoring" and the name of your city.
- If your business needs money to pay expenses, can't wait for a normal debt cycle and has a strong credit card sales history, consider down payments from buyers. .
Potential resources include http://Advanceme.com and other services that you can find online by searching for the keywords "merchant promotion".
- If your business needs start-up or expansion capital and is ready to borrow, consider business loans, loans from friends and family, and microloans.
Potential resources include your neighborhood bank, Small Business Administration, http://Prosper.com, http://TheSnapLoan.com, and http://Count-Me-In.org. * If your company needs start-up or expansion capital and has time to request processing and wait for processing, consider government grants as other types of grants.
Potential sources include http://Grants.gov and an online search for "small business grants."
- If your business needs start-up or expansion capital and is ready to sell the company's equity, consider investing, venture capitalists and friends and family.
You can search for potential sources by searching online for the keywords "angel investors" or "venture capital" plus the name of your city.
- If your company needs to buy equipment or has other capital costs (eg expensive software), consider renting the equipment.
Your neighbor's bank is a potential source.