Finding financing for the business can be challenging. Whether you’re searching for financing to start a new business, expand your existing business, in order to repay what you owe to help you get via a rough patch.

At some time your business is have to some extra capital.

The capital is out there to assist your business, you need to simply know where you can look.

This capital for the business may come from the number of options. The choices to pursue depend on several factors.

But where would you look, and which option(s) are perfect for you?

We’ve compiled a list of various financing options for your business.

Business Grants

What is a Business Grant?

A Business Grant is money provided to a business through the government, a company, or a person for any specific purpose, meaning the money given can be used according the grant guidelines. Unlike financing, money given through a grant need not get paid back unless you neglect to follow the guidelines from the grant.

Advantages of Business Grant

You does not need to pay the money back
You does not need to give up any charge of your company

Disadvantages of economic Grant

Competition is difficult. There's a small group of accessible grants each year there are a large number of people/companies applying
The process is extremely time-consuming. If you need capital fast, a business grant isn't for you. The entire process of getting approved for a specific grant could take up to and including year.
You must follow the strict guidelines on how the different options are the grant money
The quantity of the grant is set. This may not be enough to cover your project’s cost, thus you will need to find another source for additional funding

How To obtain a Business Grant

To get a business grant you need to know where to look, determine if you'll qualify in line with the grant guidelines, and then complete the grant application.

Here are several resources to locate business grants:

Small Business Administration – the SBA works with organizations to supply grants for small businesses
Grant.gov – a database of federally sponsored grants

Here are a few specific annual business grants:

FedEx Small Business Grant – FedEx will award 10 small businesses up to $25,000
Eileen Fisher Women-Owned Business Grant – awards as many as $100,000 to up to 10 women-owned businesses each year

Conclusion for any Business Grant

If you get a grant that fits your business needs, you've got a strong case to qualify, and you can wait for a funding, then a business grant is clearly the way to go. Essentially, it’s free money – forget about must be said.

Angel Investor

What is definitely an Angel Investor?

An Angel Investor is an individual looking at your company being an investment. They provide you with capital in exchange for an equity stake in your company.

An Angel Investor must meet specific criteria based on the Securities Exchange Commission (SEC). They need to possess a net worth of at least $1 million and earn an annual salary of $200,000.

Companies seeking an Angel Investor are usually beyond the startup phase, they’ve been generating steady monthly revenue, but need additional capital for marketing, product, or purchasing more inventory/equipment.

Advantages of Angel Investor

The cash is not really a loan. If your company starts growing, you both win. Whether it fails, you don't need to repay the Angel Investor.
Angel Investors could be a good business resource. They've years of experience you can tap into.

Disadvantages of Angel Investor

You give away a portion of the company. Typically, between 10% – 50%, for the way much capital is supplied. At some point the income may far exceed an investment amount.
You won't be in full control of your company. The Angel Investor is going to want a say in the way your business is run and how the cash is spent.
You may receive some opposition on how you are running your company.
Finding an Angel Investor who would like to fund your specific business may be a challenge.

How to find an Angel Investor

Many Angel Investors enjoy being active in the business, so they prefer to invest in companies that are close. So do some local research.

Network. Meet as many people as you possibly can by visiting industry events, events, enroll in a local chamber of commerce.

There are also online learning resources you can investigate. One from the top websites is Angel Capital Association – they offer resources and tips about finding an Angel Investor. Plus their network includes over 14,000 angels and also over 275 angel groups.

Conclusions for Angel Investor

There are several reasons to consider an Angel Investor:

You need capital to consider your organization one stage further.
You need help running your business. Maybe you created a revolutionary cool product, but you don’t know how to sell it off or you need help automating some process. The right Angel Investor could help.

If the pluses of the above reasons outweigh giving an ownership stack and several control at the time to day decisions, then an Angel Investment may be the approach to take.

Financing with an Alternative Lender

What is Financing With Alternative Lender?

There are several kinds of funding options – Working Capital Advance, SBA Loan, Line of Credit, Term Loan. Your options depend on how quick you'll need funding, just how long you’ve been around, the funding amount, as well as your personal credit score.

Small Business Funding has Funding Managers which will partner with you to find out which choice is best for you.

Advantages of Financing With Alternative Lender

Quick funding – In most cases you'll have a decision within Twenty four hours and funding within 72 hours
Minimal paperwork is needed
Put more emphasize on the health of the business and less in your personal credit score
Access to unsecured business funding solutions

Disadvantage of Financing With Alternative Lender

The cost for financing is typically greater traditional bank

How are you finding Financing With Alternative Lender

You can complete a no obligation funding request form with Small Business Funding. If pre-qualified, a Funding Manager will be in touch to discuss your choices.

Conclusions for Financing with an Alternative Lender

If you don’t wish to give up an equity stake in your company and also you need funding quickly, financing with an alternative lender might be your option.

Other good reasons to consider an alternative lender is you possess a healthy business, but you’ve been declined with a traditional bank or perhaps your credit rating isn't strong.

Factoring

What is Factoring?

Factoring is really a financing method in which a business proprietor sells accounts receivable to a third-party funding source to raise capital.

For example, you would make a sale, match the product or service, then invoice the client. A 3rd party would then purchase the to collect on that invoice by receiving pay out the value of that invoice minus a discount.

You get money for your invoice immediately without needing to wait the relation to that invoice to obtain paid.

Advantages of Factoring

Immediate cash flow. You can then use that cash for business operations such as purchasing materials or payroll.
It won't require collateral.
Factoring has become popular, so the minute rates are more competitive.

Disadvantage of Factoring

High costs. The factoring company pays you a discount on the value of the accounts receivable. Plus, factoring companies also change an interest around the cash advance.
Your customers pays the factoring company directly. Some customers may prefer dealing directly with you and could be switched off by the concept of paying someone else.

How to obtain Factoring

Small Business Funding has financial partners that offer factoring as a service. We’ve done the study and vetting for you personally.

Conclusions for Factoring

If month after month you find yourself needing fast capital as you watch for your invoices to become paid, then factoring may be right for you.

Crowdfunding

What is Crowdfunding?

Crowdfunding is a way for individual or business to invest or donate to a project to acquire a reward or profit. It’s not only a person investing (or donating), it is multiple parties (hence the “crowd”) providing money for your project.

There are several different types of Crowdfunding:

Loan-based – a loan is built to you with a set interest rate paid back
Reward-based – you give a reward in return for the money. An example of this can be a free product that you're designing
Donation-based – money is provided to you for a project as a gift
Investment-based – you provide investors a small equity stack in your company

Advantages of Crowdfunding

Can be a quick way to generate capital for any project.
Your investors may become your visitors. Those who provide companies money are typically doing so because they have confidence in the product/service.
Sharing your idea may generate valuable feedback

Disadvantages of Crowdfunding

You will need to perform a lot of work to have your project standout and to build interest.
If you neglect to reach your funding target, that you simply set, any financing that's been pledged will be returned towards the investors.
If it’s something new, you are putting it online just before its launch. This might result in people copying your idea.

How to find Crowdfunding

An online search will yield some options. The most well-known Crowdfunding website is Kickstarter.

Conclusions for Crowdfunding

Crowdfunding isn’t for everyone. If you want funding to buy equipment, make payroll, additional marketing, or overall business operations, then crowdfunding isn't your selection.

However, if you have just one project which will have mass appeal that you'll require funding for, you might want to consider this option.

In to achieve success raising money through Crowdfunding, you'll need something which lots of people can get behind. For example, Crowdfundingblog.com lists the most successful crowdfunding campaigns.

How to locate Financing For Your Business