Depending upon the nature of your small business, there is a very good chance that you will need some financial assistance to help you along the way – especially at the beginning. Because the needs of business customers are often so much different to those of private individuals most banks and other lenders have dedicated departments and trained staff to attend to those specific requirements. Before taking on the added responsibility of a loan though there may be other options available which don’t require such a commitment. Here are some popular finance options:
Always use your own money first if you are able in preference to taking on interest-bearing debt – even if it means a little hardship in the short-term. There is nothing wrong with accruing debt if that is what it takes to get a business off the ground, but interest is an outlay that it would be good to avoid if at all possible.
Short-Term Online Lenders
Online operators such as Kabbage offer an option for businesses seeking very short-term finance, or which may have difficulty in borrowing from more conventional sources. Remember your own personal credit history is likely to be a factor when a lender is assessing your viability as a potential recipient.
High Street Banks
Most of the traditional lenders have lots of experience in business finance provision and will have competitive options for start-up businesses, although you will first have to present your business idea and persuade them that it is viable.
If all else fails, or if a large amount of investment is needed, you may be able to pitch your idea to a business angel, or venture capitalist, and persuade them that your project is worth them staking their own capital in. Usually though this will be in exchange for a share in your business, and by their very nature these people drive a hard bargain.