If you’ve had a great idea for a new small business, you’re probably on a mission to get it funded. The amount of funding that you need will vary depending on the type of startup that you’re launching, your plans for the future, and what’s necessary to ensure that it is a success.
Today, getting a business loan from the bank might still be the first point of call for many new entrepreneurs, but sadly, business loan applications aren’t accepted as often as they used to be.
As a new small business owner, this could leave you in a position where you need to determine which alternatives are available and which is the most suitable option for funding your new business idea.
1. Small Business Loans
If you’ve applied to the bank for a business loan and the decision has come back as a no, you’re probably wondering what to do if denied funding. But the good news is that bank loans are certainly not the only option for getting the finances you need to get your new brand off the ground. Small business lenders are cropping up everywhere, and they tend to offer much higher acceptance rates compared to the banks.
You can use comparison sites dedicated to small business funding in order to find a lender that’s suitable for your needs and willing to provide you with the cash. Numo is a great site to compare business bank accounts.
2. Angel Investors
Angel investors are becoming an increasingly popular option when it comes to funding today’s startups. These individuals tend to be experienced business people who are looking to invest their money into new, innovative companies with the potential to go far.
Tech startups, for example, are often funded by angel investors who are looking to get their teeth into the next big thing. With this type of funding, the investor will have control over a certain percentage of your business.
For new entrepreneurs, it can not only be useful in terms of finance but also when it comes to the assistance and support that a more experienced professional can provide.
Crowdfunding for business is becoming increasingly more common. With this type of funding, you will be asking members of the public to invest small amounts of money into your business, with the idea that many people will invest and eventually, you will raise the amount that you need to launch.
There are several crowdfunding websites that you can use, such as Kickstarter, to provide potential investors with information on your company and set a funding target.
Friends and Family
Finally, perhaps you are thinking of starting a business that will be relatively cheap to launch. If this is the case, ask yourself whether or not it’s actually necessary to borrow money from a lender or pitch to an investor.
In some cases, a small amount of money gifted or borrowed from friends and family could be all that you need to get started. Startup history has it that even Amazon CEO, Jeff Bezos had to collect $250,000 from his parents when he wanted to expand the business at its early stage
When it comes to getting funding for your new small business idea, don’t worry if you’re not accepted for a bank loan. There are plenty of alternatives to consider.