Looking for instant funding options to inject new cash into your business?
The first thing you – as an entrepreneur – need to know is that nothing is instant in business. Nevertheless, don’t let lack of money prevent you from launching that business idea.
Do you want to start a business but lack the funding to get it off the ground? Then, don’t be discouraged; you can still launch your business in several ways.
The Challenge of Starting a Business
The truth is, it is not an easy task to start a business as an entrepreneur. According to in-depth research, about half of small businesses launched will not survive up to 5 years. And, approximately 30 per cent of companies that do survive only make it through to 10 years.
So, it should be clear to you by now that failure is much more frequent than success in the business world.
But that is not to say that your business will not be an exception. And it is also important to let you know that starting a business is a rewarding prospect.
Instant Funding: What Can You Use Them For?
You can pretty much do anything with the instant funding you receive from the numerous options out there.
But if you need concrete examples, then read on:
Business is not all that different from life itself, especially in one particular aspect: springing one unanticipated surprise after another.
Most times, many entrepreneurs push for fast funding for innovation or to grow their businesses. But that is not the case all the time.
Read more: How to grow your business fast
Sometimes, instant funding may be required just for riding along with the steady flow of things in the business world.
A business thrives when you can maintain meandering paths to resounding success while putting out distracting fires.
So, access to a quick business loan may be what you need to keep the tide running smoothly.
On certain occasions, you may need capital to expand your business. It may have to do with building on a preexisting business or opening a new location elsewhere.
With instant funding for your business, you will not only get what you need but will also get it on time to execute your plans.
One of the most expensive purchases for any small business has to do with acquiring new equipment. It could be machines, computers, automobiles, etc.
By getting instant funding for inventory as well as equipment purchases, you will not have to tamper with your existing cash flow.
Instant Funding Options to Explore
There was a time in the not too distant past that the only option for getting funding for your business was through banks. And you will have to cross lots of I’s and dot a lot of T’s to get them to approve your request for a loan.
In most cases, the requests are not approved.
Fast forward to today, there are several options that you can explore for funding. Here are a few of them:
Unsecured Business Loans
The majority of fast business loans out there do not require you to provide collateral such as savings or property. This is why it is known as an “unsecured loan” since the lenders will not take anything to secure the repayment of the loan.
However, the fact that the loan is unsecured makes the interest rates to be extremely high.
Angel investors will usually ask for an equity share of your business in exchange for their investment. You can also exchange their funding for what is known as “convertible debt.”
Most times, money is the motivation of angel investors. At other times, however, they can be genuinely interested in your small business.
A few of these investors are usually former entrepreneurs or even existing ones who may be interested in the growth as well as the development of specific industries.
So, if you are lucky enough to land the right angel investor, the benefits you will derive from them will be immense. You will gain a lot, both from their management skills as well as expert advice.
Term loans – also known as medium-term or short-term loans – are specifically designed to fill a need. The need in question is based primarily on their description, i.e. a short- or medium-term loan takes care of short-term needs.
If you are looking for a lump sum to take care of an urgent need – such a quick, single purchase – a term loan is a perfect alternative.
Family and Friends
This is perhaps the #2 quickest way to get instant funding for your business. Your friends and family know, love, and trust you.
At least, a handful of them will believe in your dream. So, do not be afraid to approach them to request for a loan or funding.
And in most cases, you don’t have to pay any interest from monies obtained from your friends and family.
Therefore, talk to your grandparents, friends, siblings or even parents. The fact that you received funding from people you hold dear to your heart will even motivate you to achieve success, no matter what it takes.
Final thoughts on instant funding options to grow your business
Starting a business can be an exciting – but also challenging – prospect. Make sure you start your business with a good business plan. Keep all costs as low as possible until you start having a steady flow of income.
By following the tips for instant funding above, you will be on the right track toward getting the money you need to kickstart your business.