Armed with an excellent idea for a new business and the drive to make it happen, you’re effectively half-way there. But only half-way – given that you won’t be taking a step further without the financial resources to fund the venture.
But while there’s no denying how challenging it can be to secure funding for a new business, it’s worth remembering that there are countless options and avenues to explore. So if you’ve been looking to get a new business up and running but aren’t sure how you’re going to meet the initial establishment costs, be sure to consider the following options:
Personal Credit
Depending on how much you need, one of the quickest ways of financing a new business can be to use your own personal credit. That being, the credit cards, overdrafts, savings and so on you already have access to. The key benefit in this instance is that not only is the cash instantly available, but you could be looking at very low interest rates. Plus there’s no risk of being turned down, as the money is technically already yours.
Bridging Loans
If you meet the required lending criteria, a bridging loan can be ideal for new business startups. Designed specifically for those looking to both borrow and pay back potentially large sums of money as quickly as possible, bridging loans can be uniquely affordable and accessible. Not to mention, tailored to the exact needs of the borrower and their new business.
Bank Loans
It’s worth remembering that banks aren’t in the habit of advertising literally every type of loan and financial service they offer. Depending on your requirements, your current position, credit score and so on, banks may be able to offer you any number of creative and flexible instruments to help fund your new business. The only problem being that it can often take quite some time for things to be finalised and the cash to be handed over.
Extend Your Mortgage
While an extension on your mortgage can also take some time to arrange, it is one of the easiest and cheapest options for raising solid sums of cash for a low price. While these kinds of loans are more typically offered for things like home extensions and alterations, they can also be secured for business purposes – depending on your needs and whom you borrow from.
Business Loans
Of course, conventional business loans, and consolidation loans, are offered specifically for the purposes of business establishment and development. Flexible, tailored to the needs of the business and typically available with interest rates of around 6% to 7%, they represent a good option to explore. That said, it isn’t always easy to qualify for a conventional business loan and the overall repayment costs can be high.
Crowdfunding
Last but not least, if you have an idea that’s likely to be interpreted as an unmissable investment opportunity by investors in large numbers, crowdfunding is a great option to explore. Cheap and carrying minimal overall risk, the only downside with crowdfunding being its time-consuming nature and requirement for hefty proposal marketing.