As a new business owner, one of your biggest concerns is likely where you’ll get the money to fund your company. When you have the right financial setup, you’ll be able to get the necessary equipment for your company, and you can create a marketing campaign that will attract more customers to what you have to offer. Luckily, there are a number of alternative finance options that are available to you.
One of the alternative finance choices you may want to consider is angel investing. This is when a wealthy investor decides to fund the majority of your business for a small portion of company ownership. If you don’t mind sharing ownership of your business for a specific period of time and need significant funding to get your company off the ground, this may be an option. However, you should be aware that there may be other terms you’ll have to adhere to in order to get the funding.
Crowdfunding is another unconventional way to get the money you need to keep your company thriving. This method involves a number of investors giving you a small donation, and the money can add up quickly in many cases. It’s important for you to make your intentions clear when you set up a crowdfunding account so that donors know what you plan to do with the funds. You should also keep everyone updated on the improvements or advancements you’ve made with your business after getting the donations. Keep in mind that you may not always get all the funding you need from this alternative finance method, and it could take a while for donors to start giving. So, depending on your business goals, you may not be able to use crowdfunding as a consistent source of business income.
Merchant cash advances can prove to be a lucrative option for your business, especially if you’ve tried other alternative finance systems that haven’t worked well. You won’t have to submit a credit report in order to get approved for this type of funding, and you can repay the loan when you make credit or debit card sales since a portion of these sales will go directly to the cash advance company. You can also arrange for a specific amount to be debited from your business bank account on a consistent basis until the balance is paid off. To get approved for a merchant cash advance, you’ll need to submit a small report to the lender, explaining the nature of your business and what you plan to use the money for. You can also mention professional accomplishments that are associated with your business so that the lender knows that you are serious and moving your business forward and plan to pay the money back in a timely manner. You also won’t have to worry about putting any of your valuable items up for collateral, so you can run your business with the peace of mind of knowing that your equipment won’t be in the hands of a lender if you can’t repay your loan.
If you’re interested in a merchant cash advance, talk to your finance team about connecting with a lender that can help.