Looking back at the dark years of the Great Recession, it is refreshing to know that finding money to start a business has actually gotten a lot easier now, than it was back then. Although the days of just walking into your local bank with your shiny business plan and expecting to get a loan are long gone, the flip side to that “farewell” has been the emergence of a large number of alternative lending source, with an almost unlimited amount of available capital. Entrepreneurs that are looking for funds to launch their startup, may be inclined to believe that it is next to impossible to get funding if you are not somehow, involved in the technology sector or already have connections to people with money. This may not always be the case, but you have to know where to look.
Here are 4 strategies for finding money to launch your startup:
Friends and family: Where would we be without them? For a lot of entrepreneurs, this is their primary “go to” source for funding. Most do not have such an option, since the family is either unable, or, for whatever reason, unwilling to provide the funds. Usually, it’s the former.
Credit cards: This may be a viable option if your card(s) have sufficient funds available at a good interest rate. For many startup entrepreneurs though, their cards are usually maxed-out before they even get to the execution phase of their launch.
Angels / Venture Capital: If you have a compelling enough business plan and don’t mind giving up equity in your company, then considering an angel investor or venture capitalist could be the way to go. These investors are generally interested in companies with new technology, so it might be a bit difficult to even engage their interest if you do not fit the profile.
Alternative Financing Brokers: If none of the above are workable options, then maybe it’s time to seek the services of an alternative financing broker (money broker). These professionals have access to multiple private lenders, many of whom you may have never heard of, but any one of them could step in and quickly provide you with the funding that you need, without you having to surrender any equity in your business. Brokers are generally compensated by the lender for helping you to get money, so you do not have to pay them a fee for their services, unless you have a prior arrangement where this is disclosed and agreed to. A growing number of entrepreneurs have discovered and used the services of money brokers with great success.
Fairfax Funding, LLC., is an Orlando-based alternative financing brokerage that focuses on helping small businesses and startup entrepreneurs to gain broader access to a wider range of funding options than are traditionally available. Visit www.FairfaxFunding.com for more details.