By Jason Holmes
Starting your own business can seem like a great idea. But the time and energy that will be required to build your business will be immense, not to mention the funding that it will require to get it started.
For those of you who are interested in starting an online business, you may be able to bootstrap your startup costs or have family members assist you with the funding. But for those of you who need major capital to get your business going, finding funding can be a tricky matter.
So, what are the business financing options you can take advantage of without incurring huge amounts of debts?
Check out the funding options discussed below:
For those looking for $25,000 to $250,000, angel investors can be a good solution. An angel investor is an individual or a person who has experience as a successful entrepreneur. Such angel investors invest their money into the first stage businesses. You will have to first decide on your needs and find the angel investors based on that. There can be some who are simply interested in the returns while there are many others who can help you with their experience too other than the money. Now, if you think that you are going to get the funding through an angel investor, you will have to research for them. They can be found almost in all kinds of industries. Angel investors are not much interested in controlling your company like the venture capitalists do.
Unlike the angel investors, venture capitalists are the corporations which actually uses the funds of different investors to invest in businesses. While the angel investors are more interested in the businesses that are just starting to form, venture capitalists are interested in the ones that are in the stage of establishment. So, if you have been in business for at least a few years, you may be able to get funding from the venture capitalists. Letting the venture capitalist invest in your business however will mean that you are willing to exchange parts of the equity in your company in return for the money.
Small Business Loans:
You may also be able to get funding for your business in the form of small business loan. Small business loans are the ones that can help you gain control of your business. But, before you take out a small business loan, you will have to first decide on your business needs. Based on the needs and your affordability, you can apply for a small business loan.
These are the three main business funding options that you can have without much fuss. These are the easiest options that you can avail of in order to start up a business or expand and transform the same to the second level. However, you should also be aware of the fact that getting a small business loan as a start up business can be a tough task. It is a situation like that when you have no credit and when you can’t get any new credit too. Similarly when you are just going to start your business, the lenders might not be sure about your business and so you may have to face difficulty in getting a loan.
Jason Holmes is a regular writer with Debt Consolidation Care and is also a contributory writer with other financial sites. His expertise is woven around various aspects of the debt industry and with his e-books he tries to impart to people the different situations and simple solutions to get out of difficult situations. Some of his works include e-books like ‘Credit Score The Quintessential Therapy for a Happy Pocket', Take Creditors and Collection Agencies to Small Claims Court' and, My Story- From Depression To a Smile'.