You can fund your business without a loan and there are some really great ways to do it! But where do you find the funding you need? In this training we'll show you 3 options that you can use right now to get the money you need to grow your business!
Intro
So how do you fund your business without a loan, without a credit line, without an actual credit card? Well, that's exactly what we're going to talk about during this training. We're gonna talk about how to not use debt financing, but still be able to get money to grow your business.
I'm gonna get you access to a few of the most little known options that you can use to get money for your business without taking on debt. I'm going to teach you how to get approved even if you have credit issues, if you don't have collateral, even if you're just starting your business.
I'm going to pull back the curtain and decode these options for you so you know outside of loans, credit lines, & credit cards, how can you get the money you need to start and grow your business.
We've got a lot to cover, so let's dive in.
Alternatives To Fund Your Business
So first, let me say there's a lot of alternatives to get money for your business. When we just look at debt financing - loans, credit lines, credit cards - we look at financing based on your revenue, or financing based on collateral based or on credit.
So there's all kinds of funding options there for you, even if you're using business credit to get credit without a personal guarantee and credit check, but there's also a lot of alternative ways that don't involve debt. So when we look at financing, we primarily look at two types of financing for businesses. There's what's called debt and there's what's called equity.
Now debt financing, or loans, credit lines, & credit cards, is where you borrow money that has to be paid back by paying fees and paying interest. Then we have equity financing, and equity financing you're not taking on debt, you don't have to pay back based on set terms. With equity financing, you're typically exchanging ownership interest, or stock in your business, to be able to get the money you need without taking on debt.
Now we're gonna talk about some options today that involve neither debt or equity. When you think about getting money for your business, never forget about the equity side because it also can be as equally valuable to you as being able to get loans, credit lines, & credit cards on the debt side.
Equity Financing
One of the best ways to get money without taking on debt is equity financing. Equity financing is when we tap into venture capitalists or angel investors to be able to get the money we need.
Now, angel investors are typically pre-revenue, even when you have a concept, they're usually giving you smaller amounts of money, sometimes $5,000 to $50,000 increments. They usually don't want a seat on your board. They don't take large ownerships interest in your business. This is just a great way for newer businesses to get the capital that they need.
Now, venture capital is more for more mature businesses. At this point, you have got a concept that's proven & you're typically generating revenue. You typically have an idea that could absolutely be huge and can really pay the venture capitalist a large sum of money within three to five years when you get acquired, when you sell the business, or even when you file an IPO and go public.
So there's a lot of different ways to tap into this kind of equity financing. There's networks of angel investors like Angel Investor Network. There's also a lot of places you could find venture capitalists or angel investors, including a lot of educational places and platforms online.
Equity Crowdfunding
There's also a solution called equity crowdfunding. This is where a lot of venture capitalists come to one place, a crowdfunding platform. There you can submit a proposal and actually attract investors.
Now this is a newer way to get financing, but places like Crowdfunder, amongst many others, actually pull together these investors and then connect you the borrower with the investors for you to tap in all different kinds of equity financing.
So make sure you think about equity financing & make sure you look at equity crowdfunding. These are really powerful ways for you to get the money you need to grow your business without taking on debt.
Rewards Based Crowdfunding
Speaking of crowdfunding, let's talk about rewards based crowdfunding. So we just talked about equity based crowdfunding platforms that pulled together private investors that want to give you money. There's also something called rewards based crowdfunding. This is places like Kickstarter or Indiegogo, where if you have a unique concept or idea, you can actually release that to the public and people donate or give you money to actually launch that business.
Now, usually, it's called rewards based crowdfunding because you're giving some kind of reward or incentive for them giving you money. Sometimes they're pre-buying a product. So let's say you're releasing a cool product, you release it on an actual crowdfunding platform people are making donations. If they make a donation of $100 or more, they're basically pre-ordering that product. But there's all kinds of other bonus and incentives and incentive levels that you're going to want to create to incentivize somebody for donating money to this unique concept you may have.
Maybe it's not a unique concept. There's even a lot of platforms out in the crowdfunding world that are for very specialized purposes. So there's ones out there for people that are making movies or releasing different kinds of music. There's ones out there for real estate investors.
So now that you know a little bit more about rewards based crowdfunding, you have to think about what you're actually getting the money for, and then go look for a platform that fits perfectly with what you're trying to accomplish.
Now, also keep in mind, normal businesses, typical businesses like creating an Amazon selling business, isn't the best place to go and use crowdfunding for. There's other kinds of options out there that work better for those kinds of industries. But if you have something unique, something different or something in a category that fits with a crowdfunding platform that is built for that category, that crowdfunding is a great way to get the money you need. It's not debt that has to be paid back, nor are you typically giving up equity in your business either.
Grants
Now, let me give you one of the coolest ways to get money for your business that cost you nothing. It's absolutely free money and it's actually through grants.
Grants are a powerful way to get money to start a business or grow or expand a business. There's a lot of money, millions and millions, available at any given time for business owners just like you.
There's two main places you want to go to access grants. On a federal level, you want to go to grants.gov. On a state level, you want to go to grant watch. So grant watch and grants.gov actually have all of the local community and federal grants that accounts for the largest amount of grants out there in the business world.
Don't get me wrong, there's places like FedEx that have unique grant programs that can work for you as well. But the vast majority of money that's available to be given out for free through grants comes from the federal government or at a local, state, or even community level. So now you know the sources to tap in to get those grants.
Conclusion
If you want to learn more about grants or any other kind of financing, we'll gladly talk with you more with our Free Finance Assessment. With a finance assessment with Credit Suite, we'll actually talk to you about all the money you can get right now.
We'll help you:
get your business credit reports at no cost
give you tips and tactics to build your business credit
improve your fundibility
We do this so you have the best chance of getting approved, for the most money, at the best terms!
Call-To-Action
So if you want to talk about the best path to get money for your business and access our Fundibility Mini Course that outlines fundibility, our Free Finance Assessment, and even our guide on 50 Credit Lines & Loans You Can Get NOW, make sure you check out the link below.
Video transcribed by https://otter.ai
Comments