5 New Cool Ways to Finance Your Startup : Under30CEO 5 New Cool Ways to Finance Your Startup : Under30CEO
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5 New Cool Ways to Finance Your Startup

| March 7, 2013 | 4 Comments

Finance Your Small BusinessThe amount  of money that it takes to finance the startup costs of a business is  jaw dropping. It can depreciate your budget overnight and unless you  have access to financing options, it’s going to put you in considerable  debt. Small businesses have to use new, cool ways to finance their  startup or they won’t be able to survive in today’s competitive economy.

1 – Integrate consultancy services

If your product or service takes a considerable investment in order  to get going, why not integrate consultancy services into your  offerings? Being a consultant is cost free. It takes very little  investment to offer this to your customers and consultants have enormous  value. If you are in an industry where consulting services are greatly  needed, there is a lot of profit that could be made. You could use this  revenue to finance your startup. This allows you to get going with your  business, without having to commit to a loan and put yourself in debt.

2 – Find an investor

Getting an investor to finance your startup is a great idea. There  are investors that spend their days located innovative startups that  they think are worth their investment. If you can find someone that is  interested in your product, you can turn them into your own personal  cash cow. However, some investors will be looking to own a percentage of  your business in exchange for their finances, so it’s a trade that you  have to be willing to make.

3 – Peer lending

Peer-to-peer lending is a very cool service that has originated  entirely online. It allows you individuals to lend cash to one another,  completely eliminating the need for a bank. This cuts out the middle man and provides you with access to startup funds at a low interest rate.  Peer-to-peer lending sites are innovative opportunities to get the cash  you need from a helping hand across the world.

4 – Home equity

A home is an investment and if you have been making mortgage payments  for a considerable period of time, you probably have built equity on  your home. You can use your home’s equity for startup funds for your  business. Some ways to do this are to sell your home and then purchase a  smaller and more affordable home,  find a company that can give you a  loan with the equity on your home used as collateral, or refinance so that your monthly payments will be more affordable for you.

5 – Credit cards or bank loans

While this may seem like a no-brainer, it’s something that a lot of  businesses overlook. Credit cards have high interest rates, but they  sometimes have high credit limits as well. Some credit cards have limits  as high as $30,000. This gives your business access to immediate cash  so that you can get going and pay off the debt as your company makes a  profit. Bank loans are promising alternative as well. Bank loans have  flexible terms and they have become even more popular now that payday  loans and short-term loans are becoming less desirable because of their  increasing interest rates.

Stevie Clapton is passionate on everything and anything financial and frugal, you can find him providing him advisable articles all across the financial community.

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Category: Startup Advice

  • http://twitter.com/gcpursley Chase Pursley

    Using a credit card to finance a business is never good advice. Miss one payment by one day and your interest rate is 20%+ – usury territory.

  • Pingback: Fresh Business Info – Saturday, March 9, 2013

  • Frank Kwakye Ababio

    That is great, i really appreciate all that thanks a LOT

  • Frank Kwakye Ababio

    taking loan from a bank is good, but sometimes the interest is very huge