Startup Funding Options

To have a startup, you need to start thinking right away about how you are going to finance it.

For this, you will come across several options, but the first one that might come to your mind is spending—or investing—your money and savings in the startup.

This is a good idea if you have saved or collected enough money to afford it.

However, sometimes, even if you have the money to fund the startup yourself, you should still consider other options that may make things easier for you.

Therefore, always research everything, including the method you will use to fund your startup even if you are thinking about using your own money.

Also, the idea of having more than one source of money is good as well.

In this way, you will have a plan B in case something that wasn’t in your plans, happens.

This will also allow you to have a better view and see the options you will have from different angles without having to worry too much about the source of your funds.

Now, when it comes to the option you should choose for your funding, it takes extra research to determine which is the best one according to your needs—and business as well.

Every business owner and entrepreneur is aware of banks and venture capital as options for their startup funds.

But since several ones have appeared during the last year, you don’t have to choose to go for one of those, which are known for not being the best choice for startups—at least, when it comes to banks.

You can also get money from your family or friends who are willing to lend you a hand or two if it is possible for them.

The options are many and you just need to take the time to find the best one for your startup.

What options do you have for startup funding? 

Some options have existed for a very long time, but others were not that frequent or possible. And others started to appear over the years that are more according to the entrepreneurs’ needs. You need to know that it is very important to analyze each one and decide which one is the best for you.

Keep in mind that even when one will seem much better than the other, that will depend on your possibilities and how do the conditions or requirements affect you when asking or getting funding for any of the options. Also, remember that having more than one source is valid as well as long as you analyze the situation and are capable of it.

The startup funding options you have, are:

Ask your loved ones or friends: if you have a united family that can help you with the money factor for your startup, do not hesitate to ask for it. Many people you love are willing to give you a hand, but you will never know until you approach them. There are many benefits if you go for this option, starting with the fact that most of your friends or family may not be interested in charging your interests when lending you the money. There’s also a probability that they won’t even ask for it in return.

Crowdfunding: you can create a crowdfunding campaign by using one of all the platforms you have available online and set your goal and purpose. This method or source is about raising money from the public via donations.

You must set a goal in your campaign and people will decide to donate or not to it. You will have access to the funds once you reach your goal.

Keep in mind that all this money comes from donations, which is why it may take more time than asking directly for money, but it is a good option if you have time and business in mind that can interest many people.

Look for an Angel investor: people with a lot of money that was—most of the time—executives or wealthy people, are willing to invest in new entrepreneurs and startups. Angel investors also have conditions and qualifications that startups and entrepreneurs need to meet, but they are more accessible than entities or places like banks. And the payment conditions are not impossible as long as you do your research and find the right investor.

Look for a funding company: many companies are focused on giving people a chance and help them with the startup funding they need. Most of these companies were founded by entrepreneurs who know how hard is to get the money you need and know very well that lenders are the ones that usually win in this trade. They are very similar to banks, but with fewer requirements and better loan and credit options for everyone.

There are other options you can evaluate and know about by researching more than the previous ones. However, the mentioned above are among the most popular, effective and accessible for every startup, which is why we decided to include them only—for now. Other options are P2P personal loans, SBA loans, venture capital, banks, microloans from nonprofit lenders, government grants, among others.

What is the best option for you? 

It depends. The option that suits your startup and yourself better will depend on your financial situation and how you can afford to pay it later on. Also, if it is suitable for the kind of business or startup you will have or keep operating. Therefore, try to investigate more about each one of them and determine what suits you better.

Knowing the one that is better for you will be determined by the requirements and qualifications it asks for to access the funds. But also, in the conditions, interest rate and the facilities of paying the loan or credit. Keep in mind that it is important to know how much money the source can lend you. There is no point in applying or resorting to one that can lend you $10.000 out of the $100.000 you need. Try to find one or different sources that at least, represent a high amount of money for each loan or credit.

However, if there is one option that is accessible and good for most startups, that would be funding companies or businesses. Funding companies are usually very flexible with the requirements and rules to ask for a loan, so most startups have a good chance to get the money they need and within only a few days. So, you should consider it as your first option when looking for a funding source for your startup.

Our company, Business Funding Team, is one of the best funding businesses in the area and we can offer you many loan options that can go according to your needs and startup. We know how hard is to get the money you need to have your startup and how lenders take advantage of it.

We want to help you to make your startup take off the ground and help you to invest the money we will lend you so you are halfway through the process. All you have to do is to enter our website, apply with your information—which is going to take you only a minute— and wait for our reply. You are welcome to call us or even visit our offices. You also need to know that we will walk you through the entire process of funding and give you the money in a very short time.

Do you need startup funding? Contact us now!