4 Creative Funding Options for New Businesses
By Ernest Hamilton
Oct 23, 2020 09:00 AM EDT
Oct 23, 2020 09:00 AM EDT
4 Creative Funding Options for New Businesses(4 Creative Funding Options for New Businesses) (Credit: Getty Image)
Starting a new business is pretty easy these days, thanks to the rise of the internet and online selling. Unfortunately, finding funding for that new company isn't as simple. As most entrepreneurs will agree, getting a business loan is much tougher today than you might think. Most traditional funding providers simply won't give money to business leaders that can't prove the potential of their business idea from day one. If you can't convince the bank that your organization is a good investment, then you need to find other, more creative ways of finding the cash that you need. Here are just some of the options that you might not have thought about yet.
Crowdfunding might not be a new idea, but it's something that has gained a lot of popularity in recent years. Before you start building your campaign, however, it's important to ask yourself whether you've got an idea that's really going to stand out. There are plenty of other startups out there using Indiegogo and Kickstarter to get attention. What's going to make yours special? It's also crucial to ensure that you don't jump into crowdfunding until you're sure that you know how much cash you need to make your business a success. Don't run the risk of being under-funded.
A viatical settlement is the process of selling your life insurance policy for a price that's higher than the cash surrender you would get for simply giving it up. If you can go on the insurance policy of your partner or get a new one after your business makes an impact, then there's nothing to stop you from cashing in on your coverage now. The key to taking advantage of this funding option is making sure that you have the right viatical settlement provider in mind. Do your research before you jump in.
If you're part of the technology startup landscape, you might notice that there are a lot of competition out there for people who can solve pressing social and economic problems. If you think that your business could change the world, entering a competition or hackathon with your new product is a great chance to grab investor attention and earn money. If you win the contest, then you might be able to walk away with some serious grant money and extra support. Even if you don't snatch the prize, you might get more attention from people who can help you in your industry.
If you can't quite manage a loan, you might find that getting a business credit card is a lot more affordable. Business credit cards are an excellent way to control spending in your business. You can look for extended promotional periods with 0% financing, and even other rewards included. For instance, you might be able to earn points on your business spending that gives you cashback in the long-term, or money off travel and flights. Remember to check out all of your credit card options before you agree to using one. There are plenty of great deals out there.
You need to make your first venture capital Series A Funding for a startup business a success. Don't run the risk of being under-funded.
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