Raising Money For A Business | Pro Advice To Obtain Startup Funding
Raising money for a business idea you have can be very stressful to plan, and then, it can take several months to implement the plan. Stories about huge sums of money granted by venture capitalists and angel investors are no more than a pipe dream for most new entrepreneurs who are attempting to gain some market traction.
Although there are various funding sources to consider, they all have prerequisites for applicants that are often too much for a new business to meet.
This article reviews the differences between 2 of the most common ways of raising money for a business that can lead to sustainable profitability: Bank Loans and Crowdfunding.
Raising Money for a Business via Bank Loans
Traditional bank loans are definitely one viable option for raising money for a business. However, with more people applying for these loans than ever before, it can be very challenging to find a bank to work with. In order to obtain startup funding or capital needed for growth, banks require:
● A well-designed business plan
● Strongly-predicted or proven profitability
● Excellent credit scores of company directors
If you’re raising money for a new business startup, then the banks are probably not going to be much help unless you’re already very financially secure. However, if can nail down a bank loan and make all installment payments on or ahead of schedule, then the bank can provide a long-term source of dependable, affordable financing. Again, this type of funding is quite difficult for most new businesses to acquire.
Raising Money for a Business via Crowdfunding
While crowdfunding is more popular than ever and projected to grow much larger as a major funding source for new and developing businesses, it is, again, difficult to obtain these funds. In short, it’s going to require a unique and highly-exciting business idea to make the firm’s decision makers notice you.There is much research and work involved in raising money for a business with crowdfunding.
There is so much competition for the funds that are available that many great business ideas get overlooked or rejected. Further, crowdfunding exposes your business idea to numerous potential investors. There’s always a risk that some of them will try to enhance your idea and capitalize on it instead of funding you.
Conclusions about Raising Money for a Business
Regardless of the type of funding source you approach when raising money for a business, the odds are that you will be rejected unless you have an awesome business plan and jaw-dropping presentation for it. You’re also going to need to meet various source-specific requirements that are nearly impossible for most new ventures.
There’s some good news! Raising money for a business doesn’t always have to be so challenging. Unsecured Business Loans has helped many new businesses launch and grow with loans up to $200,000. No income verification is required. No tax returns need to be presented.
You just need an FICO credit score of at least 700, have no active collections against you, and be lien-free. Contact our helpful team today by filling out this short inquiry form to get started Apply Now. You can have your money as fast as 2 weeks.
References:-
App Institute – How to Raise Money to Start a Business – 4 Methods
QuickBooks – 12 Different Ways to Fund Your New Business