Access to funding when you need it is essential to both emerging and established businesses. So where can you find it? There are far more sources, which are far more accessible, than you may have imagined. Your capital acquisition strategy may include a combination of funding sources. It’s smart to diversify, and a blend of debt, equity, and possibly grants is a great idea. Here are some options:
If your company needs cash to cover expenses, can’t wait for the typical accounts receivable cycle, and has invoices and purchase orders, then consider asset-based lending.
Potential sources include your neighborhood bank or factoring finance companies.
If your company needs cash to cover expenses, can’t wait for the typical accounts receivable cycle, and has a solid history of credit-card sales, then consider merchant cash advances.
If your company needs seed or expansion capital and is willing to take on debt, then consider business loans, loans from friends and family, and microloans.
If your company needs seed or expansion capital and has time to apply and wait for processing, then consider government or other types of grants.
If your company needs seed or expansion capital and is willing to sell equity in the company, then consider angel investors, venture capitalists, and friends and family.
If your company needs to buy equipment or incur other capital expenses (such as pricey software), then consider an equipment lease line of credit.
One potential source is your neighborhood bank.