Start-up Capital For Your Business
Are you planning to capitalise on a new business? Securing the capital you need to compete in your industry will be your next move once you clarify your business plan.
Funding opportunities often come in the form of contributions or grants. A number of grants exist and it includes millions of pounds offered through government programs. However, most grants are intended for established businesses that have particular purposes, requirements and deliverables and can in general be restrictive. These type of financing opportunities are also not normally available for start-ups or expansion costs.
Crowdfunding or Peer-to-peer lending is another way to gain funds for your business. P2P lending is basically a funding campaign that brings in small contributions from different individuals to help you complete a project, develop a product, or even start a business.
Although peer-to-peer lending can be great for businesses in certain situations, it is not always a sure-fire way to find money to finance your business. Thus, it is significant to recognise and consider other options.
Understanding Your Options in Loans and Business Credits
There are several options offered when it comes to finding business loans or lines of credit. To help you decide which source is best for you, you need to consider the following:
- The amount of funding you need
- The purpose of the loan and whether the funding source places any restrictions on the use of the loan
- How quickly you need the funds
- The interest rate you can afford to pay
- The amount of time you need to pay it back
Once you consider these factors, there are multiple methods of funding out there that can help you meet your goals – here’s just a couple.
1. Credit Cards – these remain one of the most common means of financing for new small business owners. But the risk of using any form of personal credit involves mixing personal liability with business liability. If you run into any problems with your business, including a loss of revenue, your personal credit is also at risk.
An alternative to this is to open a secured business credit card. By doing this, you typically deposit all or a fraction of the credit line with the creditor. You then use the credit card as you normally would and make payments to establish a good business credit history.
2. Peer-to-Peer Lending – pulls together money, which serves as investments, from a group of unrelated individuals to help fulfill a loan request. It is a process that requires a credit check, minimum credit requirements, and a formal loan agreement with terms of payment and a set payment schedule. Rates vary depending on the credit profile of the lender, but loans are often approved quickly.
If you want to learn more about P2P and how it works, this website is a good reference and starting point. Stratosphere is a peer to peer lending company that provides a channel to help businesses and individuals access competitive & flexible finance quickly by directly connecting them to savers and investors who want a higher return on their money.
If you are looking to raise property finance without using the mainstream channels of banks, mortgage lenders and bridging loan companies, we can help you.
We will work face to face with you to understand your individual needs. Together with our knowledge and wide experience of the property sector, we can quickly assess the best solution for you. It’s far easier and quicker than dealing with inefficient funders who simply do not understand, or cater to your circumstances.
To know more about alternative funding options, our free eBook “Cheque It Out! – What The Banks Don’t Want You To Know” can downloaded (to the right of this page).