You don’t want to die with your song still inside you. That’s why you’ve been pursuing a side hustle. Every day after you get out of your 9-5 job, you’re reading books and googling resources.
So far, you have some promising prospects, but you’ve run into the same brick wall every time – funding. To advance your ventures beyond the early stage, you need THOUSANDS of dollars you don’t have.
As someone who struggles to save a few hundred bucks each month, you have NO idea where you’ll come up with that kind of money.
Well, today’s your lucky day – you’ve stumbled across this blog! In today’s article on BusinessFinanceArticles.org, we’ll highlight five ways you can fund your startup.
Let’s jump right into it, shall we?
(1) Online Lenders
Getting a loan from the bank can be tough at the best of times. It’s bad enough that you have to pull together piles of paperwork and prepare a business plan. But then, you have to persuade another human being – who is inclined to say no – to give you money.
And even if you pull off the best presentation you’ve ever done? You’ll still have to wait WEEKS for a verdict. That’s crazy even if you aren’t in a rush, but if your business hangs in the balance – it may come TOO LATE.
It’s an inherently inefficient process, which makes lending a fertile industry for disruption. Online private lenders have done just that – they offer smaller loan minimums, higher acceptance rates, and quicker turnaround than the banks.
Don’t believe us? These fast small business loans start as low as $5,000, with decisions often rendered within an hour. If you are having trouble getting financing or you just need money fast, online private lenders may be the answer.
(2) Revolving Lines Of Credit
If you’ve been in business for some time, you likely know a thing or two about surprise expenses. If the fridge in your cafe dies, you’ll have to spend $5,000 to replace the unit and stock. What if a vandal pours sand into the gas tanks of your company trucks? That’ll be $1,500 per vehicle for repairs and labour.
Time is of the essence in these matters. This is where a revolving line of credit comes in handy. Rather than waiting around for an emergency loan, you can borrow what you need in SECONDS. Instead of your world stopping, easy access to capital keeps things running smoothly.
However, beware that interest rates on revolving lines of credit tend to be HIGH. Some vendors can charge an annualised rate of 40% or more. So, if you draw on a line of credit, pay off your balance owing as quickly as possible.
(3) Secured Loans
Own a significant asset, like your own home? If so, you might be able to qualify for a secured loan. Unlike an unsecured loan, the borrower (you) backs up a secured loan with something of value, AKA your house. In finance, this is known as collateral.
By putting up an asset worth more than the loan, it protects the lender from risk. Consequently, the likelihood of acceptance is far higher, and the term interest rate will be lower. Whilst getting a secured loan can be tricky in today’s economy, it is certainly worth the effort.
(4) Invoice Financing
Here in Australia, the economy hasn’t been doing so hot lately. The last time things were this slow was 30 years ago – when we last slipped into a recession.
Whether it happens in 2020 is anybody’s guess. What we do know is that the slowdown has walloped many small businesses. These conditions have impacted their cash flow, forcing some firms to skip bills to make payroll.
Want to avoid this dilemma? We recommend getting into an invoice financing arrangement. With invoice financing, you don’t have to wait 30/60/90 days for clients to pay – the lender pays you most of the amount owing every month. In return, the lender takes a percentage of each month’s invoice upfront.
That way, you experience less instability, even when times are tough. Ingenious, right?
(5) Direct Financing From Amazon/PayPal
Of all the companies out there, none have had an effect on today’s economy quite like Amazon and PayPal. PayPal pioneered internet money transfer, making it possible for e-commerce to exist, whilst Amazon streamlined it.
So, it doesn’t surprise us one bit that both have waded into the online lending market. PayPal offers PayPal Credit, which provides lines of credit up to a few thousand dollars. And Amazon offers e-commerce entrepreneurs the liquidity needed for growth.
If you are starting out, PayPal Credit might work well. However, with a credit ceiling of only a few thousand dollars, seasoned entrepreneurs can find better options elsewhere.
If you have a growing e-commerce business that interacts with Amazon, Amazon Lending is a viable option. With loan minimums of $1,000 and maximums of $750,000, they have the capital you need to scale up your operation.
There Are An Abundance Of Funding Sources Out There
Ready to take your business to the next level? Despite what you might think, there are scores of options out there. From traditional secured loans to exotic options like invoice financing, there’s a solution that’s right for you.
A happy mom, professional article writer, SEO practitioner, blogger, guest blogger & freelancer. She’s in digital marketing since 2018. She loves reading books and spend time with her family. Reach her on Email