Tag: business funding

When your business is ready for that next round of funding, you might start looking for angel investors or venture capitalists to help finance your growth. However, the terms are not synonymous – even though they both contribute to your business funding, their motivations and roles are often very different. Here are a few of the main differences: Pay Schedule Venture capitalists (VCs) work for a group of professional investors who all contribute a portion of money to fund many projects. VCs […]

Securing a small business loan can sometimes mean the difference between failure and survival for new and growing companies. Yet there are many mistakes some entrepreneurs make when preparing to apply for small business funding. Putting some basic principles into practice will help you avoid those mistakes and be in a better position to get that much needed cash infusion. 1. Safeguard your Credit Both your personal and business credit histories will be important to lenders evaluating your loan […]

It is a common situation: a business cannot qualify for a traditional small business loan so the owner takes out multiple personal loans or merchant cash advance loans with high interest rates. Pretty soon those “stacked” loans with expensive fees become oppressive and can threaten the health of the company. One possible way out is to reconsolidate all that debt. Reconsolidating debt means paying off all your smaller loans with a larger loan that has a lower interest rate. While small businesses […]

If you have a new business with a mission to help your fellow human beings, registering as a non-profit organization could be a great way to get started. It can be a great way to get business funding from individuals and corporations and sometimes even the government. Yet there are several important things to understand before choosing that designation. Consider the following: You May Have to Relinquish Total Control Most non-profit organizations are run by shared leadership, usually by a board […]

Every business is unique. No two companies will have the exact same financial needs. Before starting a scramble for business funding, it helps to think hard about the specific essentials for your company. Once you have a list in place you can then determine the best source of business financing for your operating requirements. The following inventory of needs may aid you in the process: Office Space Does your business need an actual facility in order to function? Starting out in your home or […]

Having access to cash as a small business is crucial for growth and flexibility. Business lines of credit have always been an ideal source of financing…for those who could qualify. A traditional line of credit from a bank offers some of the lowest rates and largest credit maximums, but they also require good credit scores and proven track records of substantial annual revenue. Fortunately, for all those businesses that don’t fit that profile, many alternative lenders offer business lines of credit […]

People have great ideas for new businesses all the time. And yet only a tiny portion of those people ever make the transformation into entrepreneurs. What is the main deterrent? Business funding. Creating a start-up business can often require a significant amount of upfront cash. It can be difficult to find investors for a business that is only in the idea phase, and banks especially do not like to take on such risk. While friends and family can be a good source of business financing, potential entrepreneurs […]

One of the best new ways to raising business funding is through crowdfunding. With online platforms like Kickstarter, IndieGoGo and GoFundMe, going straight to the public for working capital has never been easier. Of course to successfully raise money on a crowdfunding platform, there are several essential steps to be taken even before you post your business idea. In order to make sure your product or service will be a big hit on a crowdfunding site, you need to test the market. A great way to […]

Fledgling startup companies are often in search of a cash infusion via angel investor or venture capital. The problem is these types of funding are hard to come by for small businesses without much history. Many startups will try to follow conventional business wisdom to grow until they can attract and angel or VC. However, there times when sticking to traditional paths may not be the best way to obtain the desired financing. Sometimes as a business is getting off the ground, there may be significant […]