4 Finance Options for Your New Venture

by Alex Feldman

December 8, 2019

One of the main concerns, when you’re considering a new venture, is how you’re going to finance it. Making sure that you have the required capital when you enter a new venture is fundamental to success, and there are many ways you can go about raising it. However, no matter how well thought out your strategy is, or how great your idea, chances are you’re going to need some money to help get it off the ground. So, what are some of the ways you can start raising this capital?

Business Loans

Business loans are a great way of getting your hands on money quickly, and from a lender that you know you can trust. These loans can be tailored to fit your business needs and, depending on your credit score, can offer some attractive rates. Find a business loan that suits your needs from a company like biz2credit.com, and you’ll be able to get stuck into your new venture. A business loan will allow you to keep hold of all the equity in your business and pay off your debt over a number of years, meaning you get to keep complete control over your business, whilst gaining funds to help it get started. 

Crowdfunding  

Crowdfunding is a fun way to raise capital for your new venture and get some exposure at the same time. Crowdfunding allows members of the public and other businesses to invest in your company, either in return for equity or as a loan. You often see companies who have successfully crowdfunded using it as something of a marketing tool. That’s because successful crowdfunding is almost seen as social verification that you’ve got a good idea. If thousands of people are investing, then the logic goes that you must be onto something good. In reality, this is not necessarily always the case, but the funds you raise can still help you develop your business. 

Angel Investors 

If you can secure it, financing through an angel investor can offer huge benefits for your business. With an angel investor, you sell off the equity in your business to an experienced individual, and in return, you get extra funds, plus the added input of the investor. This works a little bit like the TV show Shark Tank, where the business skills and market knowledge of the investor are as important as the money itself. Securing the right angel investor can be a huge positive for your company, but it isn’t always simple to do so. 

Venture Capitalists

If you want to raise funds through selling off the equity in your business, then there’s always the option of selling to venture capitalists. It’s not easy to secure an investment from one of these companies, though, so you’re going to have to show that there’s plenty of room for growth in your new venture. Venture capitalists make their money through investing in other companies, so the chances are, they’re going to want a say in how your company is run. They need to return profits for their business and shareholders, so they look for scalable businesses with plenty of cash-flows.