I’ve been talking quite a bit lately about the new equity crowdfunding possibilities for small firms but there are still plenty of other ways to raise capital for your small business. The key to success of all of these funding possibilities is good business planning.
Online Lenders have high rates but may be good for short-term financing. This is good for a niche of projects with short duration and high returns. The lenders tie directly into your accounting systems and the loan is based on transactional data. This option offers fast approval, does not require a credit check or personal guarantees from the owner.
Crowdsourced loans are quite different than crowdsourced equity. Rates are higher than banks but lower interest than credit cards.
Factoring and merchant advances – advances 85% of receivables by linking to your accounting system. Cost is lower, averaging 5%
Small Business Administration – redesigned programs like Section 7(a), CAP Line of Credit, Export Loans have breathed new life into small business financing.
Government Grants – Grants are generally geared toward hiring people and can be difficult to understand.
Industry Grants – Some companies offer small business development grants.
Whatever route you choose, I am pleased to offer help in helping your firm gain access to the capital to help your firm grow.