Let me tell you the story of how I raised $100,000 to fill a gap needed to purchase a new home for my young family years ago. I had located a beautiful home that would be a stretch to finance, and had arranged for a first mortgage from the bank, and a second from the seller.
Qualifying for a loan can be difficult for entrepreneurs who have poor credit history. Luckily, there are quite a few alternative methods to attain financing for your small business, aside from the traditional bank loan.
There’s never been a more exciting time to be a small business owner. Whether you are a sole proprietor or have a team of employees working for you, never before have so many innovative tools been available to improve your business.
Too many people still believe the urban myth that you can sketch your idea on a napkin, and people will throw money at you. Fundraising is indeed brutally tough at all stages, and the seed funding is the hardest to find.
One of the first challenges new entrepreneurs face is finding a way to finance their businesses. You have a great business idea but little money to implement it; and, like every entrepreneur before you, you try to scrounge enough money to launch your startup—your dream.
The new hot topic for entrepreneurs the last couple of years is crowdfunding, which is anticipated to at least supplement, if not replace, the slow and mysterious process of current Angel and venture capital investors. The problem is that crowdfunding means something different to everyone, and even I have been confused by the different ways the term gets used.
Finding a loan without collateral is never easy. Unsecured loans are hard to come by in the best of circumstances. Throw in some iffy credit history and it can seem almost impossible. It is not impossible to get one, however.
Knowing the most common funding options gives you the foundation you need to develop your customized fundraising strategy. So here is a quick(ish) overview of the most common funding types for early-stage startups.
Crowdfunding, sometimes also referred to as “how to get strangers to pay for your stuff,” is a relatively new concept. If you’re not familiar with it, popular crowd funding sites like Kickstarter or Indiegogo can help people to fund projects that they wouldn’t be able to get a traditional loan for.
If you are in the start-up phase of owning a small business, give yourself some credit because it’s unlikely anyone else will. Small businesses have an extremely difficult time getting credit from the one place they really want it: lending institutions.
Small Biz Club is the premier destination for small business owners and entrepreneurs. To succeed in business, you have to constantly learn about new things, evaluate what you’re doing, and look for ways to improve—that’s what we’re here to help you do.