If your investors recently pulled out, or if your loans simply aren’t enough to cover your start-up costs, it may be time to get creative with your business funding. You may be surprised that there are many types of financing that you can take advantage of especially if you have a great credit history. Other than these, there unique ways for you to get the capital you need for your business.
1. Downgrade Your Lifestyle
You might be surprised at how much money you can raise from selling your home or trading in your vehicle for an older model. If you’re confident that your business is the next big thing, a year or two in a cramped flat will be a small price to pay for future success.
2. Take Advantage of Your Life Insurance
This isn’t a good idea for everyone, but if you’re a fit, healthy adult working in a non-hazardous industry, you might able to borrow against your life insurance policy to get your hands on a little extra money. You can always set things right again once your business takes off.
3. Hedge Fund Lenders
Hailed as “the new corporate ATMs” by Business Week, Hedge Fund Lenders offer capital to businesses that can prove their worth. If you have a strong pitch and a global-minded idea in a financial or technological field, you should take advantage and find Hedge Fund Lenders in your area. It only takes one wealthy individual believing in your business to start an empire.
If there is a demand for your services, consider asking your consumers to pitch in and get the ball rolling. Kickstarter is probably the most famous platform for crowdfunding, but there are plenty of others. You can also set up your own website and solicit donations.
5. Credit Cards
How’s your credit? If you have a strong, solid history of paying your debts on time, you might be eligible for financing from your credit card. Although with a good credit report and securing a credit card loan is easy, you will have to be careful when it comes to things like interest rates. However if you are running out of time and in need of quick, easy cash, this might be your golden ticket. Unsecured loans from bank are also an option. You can get 4.9% from Clydesdale Bank, which is an extremely competitive rate.
6. Cash Advances
This is another risky venture, but if you’re the responsible sort, you can get at least part of your start-up capital from getting a cash advance. Again, you need to be careful with this method as most people wind up owing a lot of money because they borrowed too much or don’t make timely payments on the loan. However if you avoid these traps, there is no reason why a cash advance can’t work in your favour.
7. Barter for Equipment
Sometimes you just can’t get enough money together to launch your business. But that doesn’t mean you have to give up the dream! Talk to hosts, suppliers and manufacturers to see if any of them are willing to barter their goods in exchange for future products and services. You never know when you will find someone who likes the old-fashioned way.
8. Amateur Shares
Let interested parties buy into your business with minimal shares. If they are reluctant to take the risk, promise to return their investment at a profit. Not only will shareholders improve your financial standing, but their support will also look attractive to other potential investors when they see that your idea is gaining traction.
If conventional funding methods aren’t giving you what you need to get your business off the ground, these are just 8 ways to get creative (there are even more options open). The money you need is out there. You just have to attract it.