Every day, thousands of small businesses and start-ups wrestle with the challenges of finding the cash that they need to finance the growth of their business. But most of those new business owners don’t know what are all the avenues that they have at their disposal for getting some cash. Thus, in this blog post I am going to provide you with few ways through which you can raise some capital for your business.
Ask your friends: This is the easiest way to raise some money. Most of the startup businesses start by taking some money from their friends or family. I know, it is really uncomfortable to ask some money from your family/friends, but it doesn’t hurt to ask. Don’t just go and ask them for money. Try to explain your business plan to your friends, and tell them about your strategy to pay them back. This approach provides them with more confidence in investing in your business.
Real estate loans: These are simpler kind of the loans that anyone can take for their business. These loans are based on the value of the real estate offered as a collateral. Most of the first time business owners take these kind of loans by putting their primary or secondary residence for collateral. But you can also include office buildings, warehouse space, retail storefronts, industrial facilities, and stand-alone buildings in the mix too. This might be the easiest way to take some money out of your existing assets.
Equipment financing: Let’s say, you are opening up a manufacturing plant, and you require some money for buying a new equipment, then you can use this particular way of financing to finance your business. When you finance an equipment, which are strictly used for your business, the equipment purchased, itself, can be considered as a collateral for the loan. Although equipment financing is used exclusively to acquire business-use equipment, it is sometimes used to obtain cash by borrowing against business equipment you already own.
Merchant cash advance: Most of the small businesses in good standing can borrow some cash against their future earnings. Once you get that kind of financing, you can repay that loan by a daily/weekly withdrawal from the business merchant account. Repayment terms are typically six months to a year. For more information about this kind of a financing option, please visit this link.
Franchise loans: If you own a franchise like Subway or Mc Donald, you can opt for this kind of financing for your business. These loans are similar to common business and commercial loans, but they are generally designed to finance the purchase of a franchise that can demonstrate an established history of profitability. Since this kind of a loan is dependent on the sale of the established franchise, these kind of loans are comparatively easier to get.
Microloans: There are various services available out there for Microloans. These kind of programs generally provide very small loans to new businesses or for some small business growth. Most of the lenders are non-profit organizations that offer government funding, while others are private investors who wants to invest some small amount of money in a small business in return of some interest. For more information about these kind of loans, please check out this link.
I hope, my tips will help you to raise some cash without selling the part of your business to a heartless venture capitalists. Please share your comments here, if my blog has helped you in finding your own cash.
Thanks – Bhavin Gandhi
June 5, 2014 at 12:00 PM
Merchant cash advance loans is viable option rather than selling part of your business. It is a very efficient options for financially benefiting your small business and paying back the loan.
June 20, 2014 at 3:58 PM
@Caleb: Thanks for providing your feedback – Bhavin Gandhi
November 3, 2019 at 5:53 PM
This article is very helpful. I think that this article will definitely help me to finance my business.I think that the easiest way to raise some money is from our customers. Thanks for sharing this very helpful article.
February 12, 2020 at 6:49 PM
Yes, I totally agree with what you said. I think that one of the best way to raise money is from our friends and relatives. This article is very informative and useful. Thanks for sharing this article.
February 20, 2020 at 10:23 PM
I need a cash for my business but I don’t want to sell a part of my business. This article is a big help for me.I’ll definitely try equipment financing. I think that I will be able to fund my business with the help of equipment financing.