Are you looking for startup capital for your new business? Before you start any business, having the cash to get things going is important. For one thing, you need a place to conduct business and you need the capacity to create prototypes and samples of your product. Of course, there are ways to start your business on a bootstrap budget, but you’ll need some scratch to get to the place where your business is really rolling. The first place people think to look for money is the bank, but this can often be a bad idea – most banks won’t give new businesses loans. If they do, the interest rates can be quite high. Here are some places to look for capital for your startup.
The first place you want to look is within your network. In most people’s cases, this network is their own family. There is a good chance that if you have a strong business plan your family will be able to lend you the capital you need to get things off the ground. The best part about getting a loan from your family is that the repayment agreement is very relaxed and you won’t need to worry about defaulting. If you go with a bank or investor too early, you could give too much of your business away.
Another option is to go with an investor. However, you want to make sure that the terms are agreeable and that the return rate doesn’t swallow your business too soon. This is why you probably want to go with a venture capital firm and not a private investor – a private investor may only be interested in cashing in and cashing out. A venture capital firm will have the wherewithal to stick out and wait for your business to grow. Plus, they won’t be begging for their returns too soon.
Next, you could go with a cash advance firm, like Express Capital. Getting a cash advance is a little bit like getting an investor, but instead of having an abstract amount of capital, the money is guaranteed by purchase orders, so it is a little more exact. Basically, if you have purchase orders from clients and customers, you can take those agreements and prove that you have money coming in. The cash advance firm will then give you the capital you need – based on those purchase orders – to pay for the production of your product. Once payment goes through, you can pay back the advance and keep the profit.
Lastly, starting a business with no capital is extremely difficult – you need some amount of money to get things going. Luckily, there are a number of avenues to take if you want to raise capital for your new business. If it will hurt your pride too much to ask your folks for the money, you could go with a venture capital firm or a cash advance firm. When it comes down to it, once you get an initial cash injection, running your business will be easier and easier.