Whether you are just getting started or are ready to expand, every small business reaches a point where they need extra money to take things to the next level. It's easy to say that you will simply have the money available when the time comes, but that rarely happens. Instead, small business owners need to look at what options for raising additional funds will work for their situation.
1. Run a Sale: If you run a service-oriented business and need to raise capital, you can always just run a special. Drumming up extra business by running a sale is a way to earn that extra money that you need to invest in new equipment. You are simply trading your time --and free Saturdays--for more money.
2. Crowdfunding: A new and popular trend is to raise money online via a crowdfunding platform. Basically, this means raising money through small monetary donations from a large amount of people. For example, if one person gave you five dollars, it wouldn't make a dent in your needs. If everyone you knew gave you five dollars, however, the amount would be significantly larger.
3. Payday Loans: For immediate cash needs, a payday loan may be the best avenue for your business. You simply borrow money until your next paycheck. This is a great solution when you need to only borrow money for a short term, like a few weeks, and can pay it back in full at that point in time.
4. Micro Loans: Most people do not realize that you cannot go into a bank's business division and borrow just a few hundred dollars for your business. That may be all that you need, but it is simply not worth the paperwork for a larger institution to make that small of a loan. Luckily, there are many sites, both online and in person, where you can borrow five thousand dollars or less. Some are dedicated to non-profits, while others are guaranteed by the Small Business Administration.
5. Factoring: A little-known, but useful source of funds for your small business is factoring. Factoring companies buy your outstanding invoices when you need immediate cash. Waiting the full net 30 or net 60 for payment can often wreak havoc on a small business' cash flow. For a small fee, usually a percentage of the balance, the factoring company becomes the one to wait and you have your cash in hand for your big ideas.
6. Angel Investor: If you are willing to sell a portion of your business, angel investing may be for you. An angel investor is often an independently wealthy person looking for alternate ways to invest their money. In exchange for a share of your business, they are willing to buy into your company and join in the future profits.
7. Family and Friends: Borrowing money from family and friends is another great way to start or expand a business. In fact, Microsoft, Famous Amos, and Jimmy John's all had a little help from loved ones in the beginning. Don't think of it as asking for help, but rather asking them to invest in the future success of your business.
8. Financing: If you need funds to purchase new equipment, talk to your supplier. Many times they can extend your terms to a net 60 or more. Having a few extra months to pay could help you afford that piece of equipment you need. Plus, if you do not have credit in your business' name, this may be a great time to start acquiring some.
Whether you need to buy a piece of equipment or expand to global position in your market, one of these ways to raise funds should work for you and your business. To learn more, visit http://www.getezmoney.com.