It is quite reasonable for a start up business owner to struggle financially for the first few months or even years. Sales may come slow until the time that you establish your niche in the market. There may be a period where you would have no revolving funds or might be in a deficit. You would always be thinking, how are you going to pay your rent, bills and even employee salary? These day to day operational problems can sound discouraging, but it is not only you who is going through this phase. Many have come out of this problem with dedication perseverance, hard work, and a sound business plan.
Even if you look through things at different angles, you will soon realize that money can solve eighty per cent of all your business problems. So, what can you do to raise funds for your business? Luckily there are a lot of alternative options for you to choose from. Here are some things that you need to learn, so you would no longer get to experience significant problems in your day to day operations.
Small business loans
You may have heard of online platforms like Become.co that offers loans to small to mid-scale business owners. The advantage of acquiring loans through these financial platforms is its straightforward loan application process. Most companies encourage their applicants to apply and get the loaned amount within twenty-four to forty-eight hours. You do not have to worry about presenting collateral for your loan because most small lending companies no longer require one.
You may ask help for additional funding from your long-time clients and local business. Crowdsourcing is a process that is being practiced for some time already. The good thing is that some financial platforms support crowdsourcing by allowing the public to invest their money in small businesses. This kind of system offers a win-win solution for the investors, the financial company, as well as the business owner.
Traditional bank loans
You can try a conventional way of borrowing money which is from banks. They offer short and long term business loans that can range from one to twenty-five years, depending on what is agreed on. Banks are known to provide the lowest interest rates compared to other lending institutions. However, applying for a loan can be a stringent process. Banks want to make sure that their borrowers would be able to pay what they owe on time; that is why they are all required to undergo a rigorous background check. Maintaining n excellent credit standing is very important.
Most of these loans would require you to pay specific interest rates each month. One more option is for you to invite some investors to join your company. You also have the option to borrow extra money from your parents or close family members. Although some of them would be willing to lend you a substantial amount without any interest, it is still essential that you repay the amount that you owe on the promised date.