Are you wondering where you can get funding to finance your business ideas? If you are starting, which means you don’t have established financial statements to show to the banks, and if you don’t have assets to back up your loan, banks are out of the options. To give you more options on where you can get funding to kickstart your project, here are some other possible funding sources.
1.Lending Companies. The lending companies are less stricter than banks and other cater character loans which don’t need collateral. Lending companies are also more flexible in terms of the requirements and do not require as much as the bank. Lending companies offer financing loans, car loans, and savings and current without your going into the bank. The downside for this is the higher interest they charged for your loans to cover up for more risks that they are taking.
2. Angel Investors. Angel investors are mostly individual investors that are searching for promising business ventures they can invest in. You need to pitch them your business ideas and their potentials. Many large companies also started accessing funding through angel investors. And look where they are now. So show the angel investors what you’ve got to persuade them to invest in your business. Angel investors can also be a source of advice and connections that are crucial to the growth of your business.
3. Crowd funding. You must present your business ideas and how they will work. You also have to specify how much you need for the project. The crowd will then decide how much funds they want to put in and get the reward according to their investment later on. This kind of fund sourcing is on the rise today as it is one of the easiest ways to raise funding.
4.Using a Credit Card. It can be a viable option if wisely used since you can use it anytime without asking for approval as long as you do not reach the credit limit. It is quite handy in paying your vendors and will give enough time to pay for your credit card bill. You must use it with caution, though, since the penalties and finance charges can file up if you have unpaid balances and only pay the minimum payable amount.
5. Factoring. This funding is mainly used by businesses which needed extensive inventories and longer account receivables turnover. Factoring is a funding option in which you sell the account receivables in a discount for upfront cash. Usually, you need to pay a certain percentage of the accounts receivables as a fee. It is a costly option and must be used with caution.
The financing options presented above will now give you an idea of what funding sources would fit your business needs and kind of operation. In doing the financial modeling for your business, you can access widely available business model templates to aid you in the preparation. eFinancialModels can help you provide a variety of financial model templates fitted for your needs.