Every small business owner knows that startups require money—and lots of it—to get off the ground. However, the economic uncertainty of the past few years has left many entrepreneurs feeling wary of applying for traditional bank or government loans.
Luckily, you’re not required to go the traditional route. There are plenty of unconventional funding solutions at your disposal to boost your business startup.
Startup Funding Solutions
Use one or more of these options to finance your business without falling into debt-
Do you have a large network of friends and family who want to see you succeed? Set up a crowdfunding operation on a platform like Kickstarter or Indiegogo. Give your loved ones the opportunity to invest in your success, and consider offering free products or services and other perks to individuals who donate.
Venture Capital (VC)
If you’re new to the world of business, the guidance of an expert can benefit you greatly in the long term. Financing your startup through a venture capital firm can garner both startup funds and built-in business mentoring. Venture capitalists invest in promising businesses in exchange for a seat on your board of trustees; they will have some decision-making power, but it can ultimately work to your business’s advantage.
Peer-to-Peer (P2P) Lending
Because so many entrepreneurs are shying away from government loans these days, peer-to-peer lending is a growing financial trend in the business world. P2P platforms allow you to connect with potential investors who want to help small businesses grow without the intervention of a traditional bank. Interest rates for P2P loans are often much more manageable than those for standard business loans.
If you’re generally in good financial standing but need cash quickly, you can secure short-term capital by borrowing against money that your customers owe you. This method works well for temporary cash flow problems in businesses with customers that are known to pay their bills on time.
Does your business startup need a quick boost in cash flow that can’t be secured with a traditional loan? Think outside the proverbial box with these unconventional funding solutions. Take the reins of your financial future and make decisions that will benefit you in the long run.