When business is booming and customers are in surplus, life for the entrepreneur is good…but not stress free. Ironically a busy business can cause headaches for the small business owner that can’t match working capital with increasing demand.
Luckily there are multiple funding outlets available to entrepreneurs in need. By educating yourself and organizing your efforts you can find the right funding source for you and your business. Read on to explore just a few of the options nourishing the soil of growing small businesses.
Seek out an SBA Loan
Backed by the government, a secure SBA loan may be just what your business needs to gain some palpable growth. Ironically, one of the many requirements asks that you already be turned down from a private lender (like a bank).
Other requirements to securing an SBA loan relate to size; but the specific requirements are vast and wide and vary from industry to industry. Applicants should note that the government is not looking to bail out sinking ships, you have to have good credit, some money of your own, a promising future (for payback) to likely be considered.
Get a grant
Different from a loan, which is looked at as borrowed money that needs to be paid back, the beauty of a grant lies in the “free” or “gifted” funds. Just imagine the heights you could take your business without the heavy pressure of payback weighing your plans down.
The downside of grant programs lies in the very specifics of which businesses stand as viable candidates (for example, non profits, educational programs and medical research groups are usually in the candidate pool). Keep in mind that many grants ask you to match funds; meaning, you may be eligible for $20,000 in grants, but in some cases you’ll have to put up that money first.
Find a direct lender
Unlike the strict lenders mentioned earlier, direct lenders (for example, merchant cash advance companies) can provide unsecured funds with flexibility, speed and ease of repayment that works with the flow of your business.
While the merchant cash advance industry has increased in popularity over the last few years, the funds remain expensive. Entrepreneurs that take out a $10,000 loan should expect to payback around $12,500. Like most loans, the idea is to invest the money back into your business for expansion and growth purposes (not bailout) if you want optimal results.
If you’ve got a great business, brand and growing plans for the future, one unique way to consider growth is by franchising your small business. By finding the people who admire your output and love your brand, you may just find some eligible franchisees.
Of course you are giving up your exclusivity within your business, you’ll have to welcome strangers in and train them to be great brand ambassadors. In return, as the franchisor you’ll be able to collect a royalty fee, which in turn could produce the funds to expand and grow your business that much more.
Where do you find funds to grow your small business?
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