There is something about the flexibility of being your own boss that makes taking the leap into entrepreneurship so intriguing to many people. These businesses are also great for the country — small businesses employ more individuals nationally than their larger counterparts, making small businesses play a vital role in driving diverse economic growth.
Alternatively, 82 percent of all small businesses close due to lack of capital. If you want to follow your passion and turn your dream into a thriving operation, you have to get your business running on the right path and that starts with adequate capital. Ready to get going?
Take a look at these 5 ways you can fund your small business.
Friends and family
It’s vital to be strategic as you seek loans from people you know and love. You must focus on borrowing from those who support your goals and dreams. These people need to know the risks attached to lending money and understand the benefits of getting to help you fulfill your passion and make your dreams come true. One of many ways to make your startup successful is to ensure you have appropriate funding in place, and what better place to find that funding than through your friends and family.
It can be a long road trying to secure grant funding; there is a lot of paperwork required to start the process. The good news is that the return might be worth all of your effort if it comes to fruition and can bankroll your hopes and dreams. Check both USA.gov and Grants.gov - each site has a database of loan options, some specific to women, veterans or minorities.
If you need a loan quickly, same day payday loans can give you a loan in as little as 5 minutes. You’ll submit a form for a payday loan or cash advance online and get your decision immediately. Make sure you work with a reputable company like Paydayr and repay your loan as soon as possible to avoid additional fees. If you have bad credit or no credit, no worries. There are payday loans available for these situations and borrowers that traditional banks would have to decline. Once you secure some money, you can focus on the ways to earn more customers and grow your business.
The United States Small Business Administration offers businesses microloans up to $50,000. One thing to remember is that it’s not simple to obtain this type of funding – the qualifications are strict. More established businesses often take precedence over newer ones. Don’t let this deter you though; go ahead and apply and see what happens.
With Square Capital you can get a loan relatively fast and easily to grow your business. The application process is much more simple compared to traditional bank loans — and the payback is effortless. Application only takes a few clicks and there are no long forms to fill out or long waiting periods. Upon approval, your small business loan is deposited in your bank account as soon as the next business day. Pay off your loan with convenient automatic deductions from your daily card sales so you never have to think about it. You can also prepay at no additional cost.
Microloans from nonprofits
This capital is simpler to secure for many small business owners. The relaxed requirements make it a good reason to pursue, and the lenders often support minority business owners, businesses located in troubled communities and those businesses with unstable finances.
Each form of funding has its pros and cons. Make sure you fully grasp the benefits of each and consider which is right for you and your business needs. After you secure the funding you need, the sky is the limit for you as a new entrepreneur.