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Funding Options for Your Small Business

13 December 2017, 18:26 CET

For a startup business, finding financing can be challenging.

The money to start or expand can be tough to find. It is easy for an entrepreneur to plan for their businesses success but get turned down by banks when seeking a loan. Small business owners often run for small business administration loans, but they are increasingly competitive which makes getting the necessary funding very difficult. Although, there are numerous challenges that small business owners face, there are plenty other options that make financing easy. Here are a few options to consider for easy funding.

Baking cakes

Venture Capitalists

This is the money that aims at building startup businesses with consideration of both high-risk and high-growth potentials. Such companies advise on exiting strategies to ensure that the investor has a higher chance of making profits and growing their business effectively. They also advise on the best services or products to bring to the market and become successful within a short period. However, venture capitalists often deal with offers that are short term. In other words, you must have a plan that will help the venture capitalists to recover their money within three-to-five years.


Sites such as Indiegogo and Kickstarter are well known for financing small businesses. These sites make it easy for a small investor to pool funds from various investors instead of directing your focus on a single investment. However, different sites have different schemes of raising your capital. Before settling for a particular site, ensure you understand their goals and if they require a processing fee before you receive funding.

Credit Card

Although using business credit cards can put your investment at some serious business risk, it can be a good option for funding your business. You will need to be disciplined in the way you use the credit card, though. Partial payments of affordable figures will eventually accumulate to a bigger amount and reduce the risks of flossing your other accounts. Additionally, you can responsibly use your card and avoid the occasional jam.


If your business has a poor credit score record, factoring is a simple way of accessing funds to boost your investment. Factoring is a method of selling company's receivables at a discount for up-front cash. This method guarantees you funding for your business before your invoice is fully paid. However, this style is often expensive, and it can negatively affect your business's credit score. If you take this investment option, you will be pushed to pay 2 percent interest within 30 days. However, some receivables companies can help you sell all your invoices at once. Finding a good company to sell you invoices will guarantee your business is running and it has all the funding required before your customers pay all the business dues.

There are several other options that you can put in place and see your small business grow to its full potential. Most importantly, ensure you understand every option with its ups and downs before you settle for one. Steady business cash flow provides opportunities for enlarging business wings.

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