Whether you are just starting out with your new company, or you have been in the business for years, raising capital is always tricky. Even if your business is doing very well, your profits might be needed to pay off loans and debts. Or you might even need it to cover overheads and salaries. So when you need an extra injection of capital to push your business forward, it might seem like there’s no chance. Don’t despair, though. Here are five easy ways to raise the business capital that you need.
Get A Loan
There are many online loan companies who specialize in loans for small businesses. Most of these accept online applications, making it easier than ever before to get the cash you need. If you go to your bank for a loan, it can take them weeks to accept your application and then transfer you the money. However, with an online company, the money can be in your bank account within a matter of hours.
Crowdfunding is one of the latest trends taking over the business world. The theory behind crowdfunding is simple. You are relying on individual investments from potential customers. It is a great way to fund a new startup business or an exciting new project. You sign up to a crowdfunding website and create a profile which includes your pitch. Say how much you need to raise and offer incentives to those willing to hand over their cash to you. If you get all the money you need in the set time, then those who invested will receive their incentives, and you can use the money for your project!
Home Equity Loans
Many business owners rely on their home equity to get through a difficult period. This basically means that you are using the money tied up in your home for your business. It can be a very quick way to get extra cash. Some small businesses wouldn’t be thriving today if it weren’t for getting money this way! However, some company owners prefer not to use this method. If something goes wrong, you could be putting the family home at risk of being repossessed.
Some vendors may be willing to give you credit or extend their repayment terms if you are a loyal customer. Some will even let customers pay once they have sold the goods. This helps with increasing capital as it takes the monthly stress off of paying bills. You are therefore reducing your costs, which can ultimately lead to lower operational costs for your business. Your vendors might even be able to negotiate repayments on a case by case basis. This will really help you out through your company’s dry patches.
So when you are starting to feel the purse strings tighten around your business’s budget, don’t get too stressed out. There are plenty of ways to increase your capital. These are just four out of many! It is also a good idea to have a chat with your accountant and see what he or she advises.
Updated on 28. April 2021
Home Based Business Infonet