Running any business can be challenging. One of the key challenges is to secure adequate financing and creative financing offers good options to answer the need.
Why is Financing Critical for Businesses?
Every business needs funding to maintain sufficient working capital, purchase new assets and inventory, acquire additional human talent, operate, and grow efficiently, and compete vigorously. Creative financing offers the means to get funding.
Creative Financing Options for Your Business
Consider these creative financing options:
Conventional term loans as provided by banks and credit unions.
SBA-backed loans are provided to startups and small businesses. They typically offer more favorable rates and terms compared to conventional term loans.
Microloans are short-term loans with lower capital limits than conventional loans and they typically offer low interest rates.
Angel investors are investors that have a specific interest in assisting promising small businesses and startups.
Venture capitalists are investors who are interested in enterprises with high growth potential and that can provide a large return in five years.
Credit cards are often used to fund new and growing businesses, but the credit limits are typically small and the interest rates substantial and therefore risky.
Friends and family often are found in the “mix” of funding sources for businesses, but this comes at the risk of damaging relationships if a business experiences financial difficulty.
Bootstrapping refers to a combination of doing everything possible to secure funding. Actions may include cashing out one’s 401(k), operating a low-capital side business, selling assets like a boat, getting a home equity loan, and renting out your home.
Crowdfunding may be an option for a business that has some socially appealing purpose.
Factoring can provide funding by selling accounts receivable to improve cash flow.
Know that once a great idea is developed, creative financing can provide the means to achieve success.
Seek Expert Financing Assistance
Contact 360 Commercial Capital based in Leesburg, FL, for fast and flexible business financing. We offer a large portfolio of business loans for a variety of commercial finance needs.