Baker in Shop Doorway
The way you finance your business, can have a substantial impact on your business’s success or failure. It is a good idea to have a number of different financial sources to gather capital because financing this way can save you money and prevent bankruptcy. Here are 6 sources of business financing that will help you get the funds you need to start your business.
Angel equity – If you are looking to get your company started it is a good idea to look for an industry executive who is interested in investing. On top of the capital investment, you can benefit from the advice and networking opportunities that an investor can bring.
Smart leases – Leasing a fixed asset is a good way save your cash for working capital.
Bank loans – Banks will provide provide short-, mid- or long-term financing. They can also finance different business needs from capital, equipment or real estate.
Local and state economic development organizations – These institutions provide low interest rates, compared with a bank. In some cases development organizations will provide extended terms to assist payment.
Customers – Advance payments from customers, can assit you to keep your business growing. This is possible when you have a strong relationship with your customers and when they truly believe in your product or service.
Friends and family members – Your loved ones will be the most willing to offer you business support. Just remember to be clear on the terms of interest and the repayment period.
