7 Types of Funding for Small Businesses

These funding options will help you get the dough your small business needs.

There are numerous ways you can obtain funding. You’ll need to plan and research which ones will be best for you. While some require will your own money, there are other options available too.

Here are 7 types of funding for small businesses.

  1. Product Pre-Sales

If you’re selling a single product, one of the easiest ways to raise funding is to pre-sell. This will ensure you don’t have too much inventory. You’ll need to have a solid timeline and follow through with orders on time.

  1. Crowd funding

Multiple crowd funding sites are popular among inventors and entrepreneurs. Some of the top choices are the following:

  • Kickstarter

  • Indiegogo

  • Rocket Hub

  • Fundable

  • Fundly

Each of the mentioned sites has different pros and cons. You should research which options work best for your small business.

  1. Small Business Administration

The U.S. government has invested in the continued growth of successful small businesses. That’s why the Small Business Administration (SBA) offers multiple small business loan types. You can discover the available SBA loan options online.

  1. Personal Financing

You may have an easier time getting outside funding once you invest some of your own money into the business. A smart way to raise your own personal financing is to save for six months or longer first. If you’re willing to take out a second mortgage or sell some assets, you may be able to reach your personal funding goals.

  1. Angel Investors

Angel investors are different from other options because they’re constantly looking for the next investment. At its most basic deal, you’ll exchange some share of equity in the small business for funding. If you find an angel investor, make sure you follow any regulations required for transactions.

  1. Small Business Grants and Local Funding Options

Once your small business is up and running, you can begin searching for free cash in the form of grants. They usually have specific requirements you need to meet to apply. You can start your search using government databases and check with your local small business administration chapters.

  1. Obtain a Choice Cash Title Loan

A Choice Cash Title Loan uses a vehicle’s equity to provide funding. Their differences make them beneficial for borrowers, for instance:

  • Bad credit isn’t always a deterrent

  • They have easy, low payment options

  • No early payment fines or penalties

  • And more

You can learn more about available funding options online.

Funding for Small Businesses

You should network with entrepreneurs and other small business owners. They may be able to offer more advice about different funding sources. Remember that until you have proof that you’ll use the obtained funding effectively, it could be difficult receiving funding from any source, including family and friends.

Time to Get Funded

Now that you’ve read about the 7 types of funding for small businesses, you can create your plan and act on it. Visit our site for more advice and tips to improve your finances.

About RJ Frometa

Head Honcho, Editor in Chief and writer here on VENTS. I don't like walking on the beach, but I love playing the guitar and geeking out about music. I am also a movie maniac and 6 hours sleeper.

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