Loan

Tips on How to Find Funding for Your Small Business

Small businesses are critical to any local community with companies employing less than 20 employees accounting for over 89% of all firms in the USA. These businesses also help to keep money local and encourage economic growth in an area, so there are a lot of reasons to help to make them successful. Small business owners take a lot of pride in their accomplishments, too. They probably started their business to pursue a passion and give them more freedom to control their personal life but, unfortunately, it also takes a lot of hard work and enterprise to start up and to maintain. If you have recently started a new business, you probably have a few funding options available but whatever route you pick, you will need some capital to get started and keep going.

Some of the potential ways a small business owner can find working capital for business are as follows:

Loans

Some people inherit the startup costs for their business, and others manage to save enough to fund it, but most people are not so lucky. In this case, one of the most common avenues is for business owners to take out loans. Banks have strict small business loan lending criteria; you need to show a profit and time in business and an excellent personal credit to qualify. You may be able to find some friends or family members willing to lend you some money for your dream but this might not be a good idea long term.

Investments

If you talk to enough people in your community and get them excited about your project, you may be able to attract angel investors. These people put their money into your business, and you either pay it back with interest or they take an equity stake in the company. Unfortunately, investors are not always readily available, and a lot of this avenue has to do with timing, not just your sales pitch. If you can’t find anyone willing to loan you money or invest it, then your best option may be to turn to a factoring service in Kennesaw, GA.

Invoice Factoring

Factoring companies in Kennesaw, GA buy your accounts receivable at a discount, which gives you the working capital funding you need for your business without waiting to get paid from your customers. Your clients pay the full invoice once its due for payment, and your business gets the balance minus a small factoring fee. Not only do they provide immediate access to much needed cash, they undertake full receivables servicing on your behalf. Sending out invoices, monitoring debtor performance and undertaking collections are a drain on your time and resources. Hiring a factoring service lets you focus on your business and not worrying about when you will get paid.


Leave a Reply