| Capital Critters! Fundraising Methods To Ponder

Posted in Start-up Ventures at 1:00 PM by Loftis Consulting

Running an established business can come with concern after concern. When you are setting up your business, the worries come thick and fast! The most obvious one is money. The precarious position a business can find itself in during the early days means that business owners are tearing their hair out to find the easiest and quick source of money to inject into their business and also pay their staff members! And for many first-time business owners, they may not be too sure where they can go to raise capital, or what is available to them. So here are some alternative sources for your notebook!

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Microloans

While there are many different types of small loans, the microloan is one that is easier to get than the traditional ones. There are companies that provide up to $25,000 to small businesses and startups that have no access to any type of funding. Some money loan organizations provide loans based on the type of business, for example, a group like Accion has a program for food and beverage businesses. Microloans are usually under $50,000. So if you need a larger sum, you will have to go down the standard loan application route.

 

Merchant Cash Advances

This is where a company offers cash advances in exchange for a percentage of future credit card or sales receipts. It is a quick process, and for businesses that are looking for mca leads to help aid their marketing and generate leads, it is a lucrative prospect. The benefit of businesses looking for merchant cash advances is that it is very quick to apply for and generally involves minimal paperwork.

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Crowdfunding

A mainstay of the internet is the ability to crowdfund almost anything. It is a very attractive option when you have to raise capital fast. People have used it fund movies, businesses, books, you name it. If you can reach a broad spectrum of people, and each person donates a small sum, you will be able to reach your target in a short amount of time. But for each person that donates, you need to give them an incentive to give that money, and this could be a free sample of the product you are raising for, or something else. For example, a musician may offer a free CD. As the process can have a very quick turnaround, it is a great way to get funds fast.

 

Sales or Discounts

You shouldn’t overlook your customers as a way of generating quick cash. You don’t even need to be in the customer service industry to reap the rewards of this. You can offer a discount to customers who pay quarterly or pay in advance, and as this gives you the big cash injection up front, it is something you won’t notice further down the line because the discount doesn’t have to be a massive one. A discount, as small as 5% from one customer, is barely noticeable on your books, but they feel like they are gaining from it.

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