If you are a new business, of course, having money to get going is a necessity. Unfortunately for you, though, private party lenders may reject your request for funding due to a lack of credit history for your business or any business assets. You need some form of collateral. Hopefully, these six tips will help you fund your new business after you’ve been rejected by private lenders.
- Take Out a Loan Against Your Home
If you own a home, you may have the best asset available to you. Taking out a loan against your home can help fund your business. You should, of course, be confident in your business to pay this back as well. Check out some of the options on ukhomeandpersonalloans.co.uk.
- Check Out Some Crowdfunding Options
Crowdfunding is another growing popularity for alternate funding options. On the websites, you’ll set up a page for your new business so prospects can determine if they want to help you out. A few options include:
As you can imagine, each site offers some beneficial terms. Examine each one to determine which is right for your business.
- Presale Your Products and Services
There is nothing wrong with doing some work before getting your business started. You can presale your products and services to give you the money you need. Not only that but think about how much market research data you’ll receive doing this. You’ll know your exact customer market, what they are interested in, what they aren’t, and so much more.
- Find Angel Investors in Your City
Just as the name states, angel investors are wonderful people looking to invest in your company. Don’t feel bad seeking them out either. Angel investors were right there helping companies that are well off today, such as Costco and Google. So, you may be wondering, what’s in it for them? Well, sometimes up to a 25% ROI. You can meet these on online platforms such as Meetup.com or even industry networking events.
- Pull From Your Own Assets
Another way to use your own personal investments is to pull money from your own assets. Use your car as collateral for a personal loan. Take a loan against your 401k, IRA, or even your life insurance policy.
- Check Out Grants
Who said to that to fund your business it had to be from borrowed funds? There are many existing grants with billions of dollars waiting for you. These grants help with research and development or purchasing equipment. There are a vast amount of opportunities with the Department of the Treasury, Department of Veterans Affairs, National Archives and Records Administration, National Council on Disability, and the Small Business Administration to name a few. Check out Grants.gov to get you started.
Now you have six alternate resources to fund your new business. None of these are a piece of cake, so be prepared to put in the time and effort on your part. The difference could be with you having total control or having to share ownership with others.