What is Non-Dilutive Funding?

Small businesses have many opportunities for funding. These multi-million dollar deals seem like an incredible opportunity, but in reality, the strings attached to this kind of equity financing may cost you in the long run. Quitting a part of your equity may mean giving up most of the charge of your company. This type of opportunity isn’t your best option you've available. Non-dilutive funding is a much better option.

What Is the Definition of Non-Dilutive Funding?

Non-diluted funding gives you the money your business needs without forcing you to quit any treatments for how its managed. Loans, tax credits, grants, and crowdfunding all come under the heading of non-dilutive funding. You get the money you need and grow entirely control of your company and it is day-to-day operations. You will still be asked to provide data along with other information to the entity that awarded your company the working capital.

Who Offers Non-Dilutive Funding?

There are many locations that offer non-diluted capital funding to small businesses who want to maintain total control of their companies. The following sources are excellent choices if you are looking for working capital with few strings attached.

  • SBA – The Small Business Administration
  • SBIR – The little Business Innovation Research program
  • Economic Development Agency in your state
  • Government assistance programs
  • Private donors
  • Grants and loans

Crowdfunding is another viable choice.

The Advantages of Non-Dilutive Funding?

Non dilutive funding offers several benefits that small business owners can rely on. One of the greatest benefits is you maintain full charge of your business. In addition to the funds being tax-deductible, the funding terms are also better. Grants, tax credits, and government vouchers don't have to be repaid. You receive all the benefits of the capital without compromising your financial future or handing treatments for to outside investors.

Is Non Dilutive Funding Suitable for Your Business?

No matter what kind of funding you choose, you will see benefits and drawbacks. It’s your decision to understand your business and be positive about your ability to handle it effectively. For many, getting a far more qualified investor to assist manage the business may be the best option. Others might have everything they need to move their business forward once they have the money they need to keep their business growing. Because of so many funding options you've at your disposal, you need to look over each one of these to find out which one is the best fit for the business. Non-dilutive is among the most effective forms of financing for smaller businesses. Understanding what options you have available and having a financial plan in place will give you a chance to find the money you need without giving control to a person else. With this type of funding, you'll be able to chart your own path and build your company to your specifications. It’s important that you know your business, its needs, and also know your own management abilities. With that information, you may make an educated decision.