Smart ways to finance your small business

By Henry Brown

It doesn’t matter if you’ve heard investors talk about it being a bull market or a bear one, there is no economic climate that makes finding financing for your small business a simple task. It’s one of the challenges every single entrepreneur will face at some point in his/her career. It could be finding funds for a startup idea, working capital to leap on an opportunity, capital to scale up, or just money you can put into an emergency fund in preparation for any tough times that may lay ahead. It’s all a tall order.

To help you find the money you may need, whatever it’s for, we’ve pulled together a thorough list of (sometimes creative) financing options, strategies, and techniques to give you the very best chance of surviving or thriving – whatever your circumstance.

– Pinching personal pennies

If you’re looking at that subheading and thinking “personal financing is about as far as you can get from creative,” you’ve clearly not done your research because the majority of wannabe entrepreneurs and startup owners still don’t think about putting any money aside or saving up before they try to jumpstart their idea. What’s worse, a lot of the time it’s not that these people haven’t thought about saving start-up funds; it’s that they don’t want to use their own money to start a business. The reason this attitude makes no sense is simple: no investor is ever going to hand over their hard-earned cash if they see that you haven’t put anything in yourself. They want to see you believe in your idea enough to put your money where your mouth is. They want to see you have some skin in the game.

In an age of disruptive technologies and attitudes, this has to be one of our absolute favorites. Online peer-to-peer lending platforms enable people to come together to lend money to one another without the use of an official financial institution as an intermediary. The reason this has taken off recently and become the popular kid in class is that it removes the middle-man, meaning those who need loans get a better chance of attracting lenders, while those investing get higher returns because of the risk involved in such lending. It’s an absolute gem.

– Crowdfunding is creative

Some of the most incredible ideas have only been allowed to catch some traction because of crowdfunding sites like Kickstarter. This is because it let’s those brave enough to put an idea out there find like-minded people who will back the idea and efforts one little donation at a time. That’s right. You’re not looking to impress investors in the typical sense; you’re looking to impress consumers, usually by offering them your product at a discounted rate once it gets all the funding it requires. It’s one of the most fascinating ways to launch a product, brand or business – but you do need to know what makes a great Kickstarter campaign.

– Asset-based lending

The reason why it is so important a business secures a loan is because no business can function without cash. But jumping through the hoops that come with applying for a bank loan is not everyone’s cup of tea. The result: asset-based lending has popped up all over the internet. If you’re interested in this, then we recommend you visit now. These companies have specialized in developing asset-based lending services that will help businesses use the money hidden in their equity for loans. It’s simple and yet incredibly effective.

Some companies require a serious-sized bag full of cash to get their idea up and running. However, there are some entrepreneurs who only need a bit and that is where microloans come in. These are offered by private companies and non-profits that want to promote entrepreneurship and help individuals who would be shown the door if they went down the traditional bank loan route. Microloans – usually no more than $35,000 and often much less — can be a major lifeline for so many would-be entrepreneurs who don’t know where else to look.

– Purchase order financing

If there is one thing all entrepreneurs, startups, and small-businesses have in common it’s wanting to grow. That’s the aim of the game. The problem with scaling is most startups and small companies don’t have the ability to accept large orders. This is because they lack the cash and resources to build and deliver a large number of products. If this describes your current headache, don’t despair just yet because there are purchase order financing companies that are open to advancing the required money directly to your supplier. This is great news because it allows the transaction to be completed and the profits start to flow straight into your bank account.

This is by no means a complete list. So, If you are curious about other ways to fund your business, subscribe to our blog because there will be plenty more articles on this topic.


Henry Brown is an online marketing executive. When he isn’t talking shop he’s roaming the streets of London, uncovering the extra-ordinary in the ordinary.

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