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Learn 15 proven ways to get your business financed without using your own money. I will give you the information on some companies and methods to help you on your journey.
I would never tell you to start a business using a Business Loan. While if you are an already established business that is just looking for some new equipment then go for it. I understand finding ways to finance your business can be hard. I do not recommend financing a business that is not already established with any of these besides Crowd Funding but I do understand that it hard to resist chasing your dream. Just know that there is some serious financial risk and it can put your credit back into the 400s.
If you are familiar with any one of these methods then you will understand they are all great. PayPal Capital gives you a loan not based on your credit but sales history. This means that if you are an online business that uses PayPal for the majority of your sales it should be easy to get a loan from them with no credit check. Find out all about Small Business loans here.
Getting a Kabbage Business loan is a great way to get your business financed. Some of the requirements are making at least $4200 a month for the last 3 months or $50000 annually. Kabbage will run your credit when financing a loan from them. The good thing is credit is not the only factor that determines if you will get approved.
The SBA is an organization where you can find lots of information on their website pertaining to business. You also may be eligible for a small business loan through them. There are lots of grants and opportunities that you may have available to you so you might want to look into this before anything else.
The Lending Club is a great tool also. They will take a look at your credit and determine if you are eligible with a loan through them. It is a great place to get a loan and build your credit by paying off the loan.
Using a credit card to finance your business can be expensive. Not only will you accrue interest but your credit score may temporally drop if you are using more than 30% of your limit. If you decided to use a business credit card it can increase your business credit. The Great thing about financing your business with a credit card is that you can pay a low amount back each month. Again this can cost you lots of money in interest. If you already have great credit I am sure you can find a card that you can get 0% interest for the first 9 months. That means that you can purchase equipment and not pay interest for the 9 months.
Finding an investor can be a great option for financing your business. This, of course, depends on the terms that you agree on. Finding an investor can be challenging. Are you looking for an investor to start a business or to help finance an established business? If it is to start a business then just like a bank loan they may want to see a business plan. They may also want a large stake in the business if they are putting up the funds.
Make sure that you keep your options open and stay networking. The investor that you find might not be the right match for this particular business but maybe for another one of your business venture. There are things such as a silent investor or partner. They may actually own the majority of the company or half but likes to be behind the scenes. There are actually alot of companies like this.
You can find a small business investor at something like a trade show. You will find others that are in your line of business. You will find manufacturers and suppliers and others that may have the same type of business as you.
If you are in need of business financing for supplies or a product that you are regularly ordering you will want to ask the company for net 30, 60 or 90 terms. This can be a great way to free up some cash from your business. You can get what you need when you need it and repay them within a certain amount of time. The great thing is that most manufacture won't charge you interest as long as you repay the amount as your terms are stated. Another thing that is great about net 30 terms is that you will be allowed to order as much as you need to take advantage of free shipping. This is something that we do for our custom t-shirt business.
Most companies offer free shipping as long as the amount is above a certain amount. Our normal amount is around $150 to take advantage of free shipping.
Finding a business partner may be a great solution for you and someone else. You may have a very large customer base and a strong online presence and another business owner may have a large shop with lots of equipment but a weak customer base. There are a lot of business owners that even outsource everything. This can be a good option for you.
You can find a business partner at events like trade shows. This is a perfect place to mention your business and meet with others.
If you have any comments or advice please let us know in the comment section below.