If you are an entrepreneur you may know the struggle. Finding money to support your business funding is not easy, but there are ways of getting exactly what you need by simply asking the right people and organisations. Below you will discover the five most effective funding methods that will help you keep your business strong and successful over time.
1) Start-Up Loans
If you have just recently launched your business and been trading for less than two years, you may want to check the options offered by the government, which usually provides generous Start-Up Loans up to £25,000. You can verify your eligibility to these types of unsecured personal loans on the following link: https://www.startuploans.co.uk/affiliates/
2) Cash advances
If you fancy getting an interesting amount of cash, you could try companies such as Worldpay, Business Cash Advance and Credit for Merchants, which enable small organisations to obtain cash upfront before invoices and debts have been paid for. The way it all works is quite simple. The financier buys a percentage of your future credit or debit card at a discounted price and then deposits the money into your bank account after a couple of weeks. All repayments are obviously scheduled in advance, as everything is agreed on beforehand, and shift between 10%-20% of every transaction. This technique allows you to quickly gather up to £100,000, without having to stress out about monthly or fixed repayments. It is usually possible to obtain cash advances if your business has been around for minimum one year and if it earns up to £3000 per month.
This could be a fantastic solution if you are trying to raise money for your business. People from a particular geographical area or even from all over the world join their efforts by donating an X amount of money on crowdfunding websites, which are designed to collect money for ideas, ventures, charities or businesses in need. All donors or investors on crowdfunding websites are usually individuals donating their own money through small donations. Popular crowdfunding websites, where you can set up an attractive campaign and engage donors, are Kickstarter and Crowdcube.
4) Peer-to-Peer Loans
Funding Circle is among one of the most used peer-to-peer exchange sites, which gives you the opportunity to interact with private donors, enabling you over time to create a relationship based on trust and professionalism with them. There are numerous and important companies on these sorts of websites which are always willing to donate their money for good causes and to extremely ambitious entrepreneurs.
5) Family or friend loans
This might be the easiest option to take into consideration if you urgently need money. If you are lucky enough to know someone in your family or among your group of close friends who owns a consistent sum of cash and who is generous enough to support your entrepreneurial plans, then this might represent the perfect funding solution for you. The benefits are numerous: first of all, borrowing some money from someone who knows you really well will not cause any trust issues; secondly, friends and relatives will probably ask you for lower interests than external organisations.
There are certainly other effective ways of getting funds in order to keep your business alive and strong but these are the most recommendable options, especially for those of you who do not wish to go down to the bank loans road.