Have a great business idea but not the money to get it started? Here are some options that offer business funding for startup companies.
Apply for a Business Loan
Get started with a business loan. New business owners with a positive credit rating, a reliable income source, and a solid business plan can apply for a business loan. Banks, online lenders, non-profit microlenders, and the Small Business Administration are great resources for new business owners seeking funding.
Work with an Angel Investor
An angel investor is a wealthy individual who invests their money for a stake in the company. Angel investing can get business owners the upfront capital they need to grow their businesses, but they might also want to be part of the business’s decision-making process. Also, angel investors must be paid back if one sells the company. Some angel investor contractors stipulate that the investor’s investment plus interest must be paid back within a specific timeframe.
Pitch to Venture Capitalists
Startups with high ambitions to grow their company into million-dollar companies often seek the assistance of venture capitalists. Working with a VC can get startups a lot of initial funding, but it comes with some caveats. Often, VCs will insist on bringing on their own people to strengthen the team to drive the company to future success.
When getting started with a business idea, it’s always a good idea to start small using a proven funding source that’s sole purpose is to provide business funding for startup companies. Look for funding sources that offer lending platforms for early-stage startups.
