When your business is just starting off, you need money to keep it growing and succeeding. Your local bank may have money to lend, but the rules for borrowers can be strict. The problem lies in the fact that it is a new business with little credit to its name. There are ways, however, to raise funds for your new venture and continue your forward motion.
1. Credit Cards: While using your credit cards to fund a business screams of irresponsibility, sometimes you need to take a calculated risk. Using your personal credit cards to pay for the equipment and supplies needed to move your business to the next level may come with high interest rates, but it get the job done. Try using or transferring your balance to a card with zero interest for an introductory period to minimize your costs.
2. Payday Loans: Like credit cards, payday loans come with high interest rates, but, unlike banks, they are relatively easy to get. You simply show them proof of income with a pay stub, bank statements, or a P&L (profit and loss) statement. A payday loan, such as from Payday Express, when used responsibility, can give you practically instant cash flow for your small business.
3. Invoice Factoring: Cash flow is always a big problem in small business management. While you may have thousands of dollars in your accounts receivable, your bank account may still be hovering just above zero. A factoring company will 'buy' those outstanding invoices from you and pay you a percentage of the amount you are due. You get most of your money without waiting a Net 60 and they make a small profit for being patient. Win-win.
4. eBay: If the idea of selling your possessions on eBay to fund your business sounds crazy, consider that Steve Jobs and Steve Wozniak funded Apple by selling $1350 of their own possessions. How much do you want to succeed? What can you do without? Sell it on eBay, at a consignment shop, or at a garage sale.
5. Get a second job: While this is not instant cash, if you believe in your business and want it to succeed, its a great way to keep everything afloat. Even working evenings delivering pizza while spending your days growing your true love will nest you several hundred extra dollars a week. Plus, like Steve Jobs and Steve Wozniak, you'll have a great story to tell when you are rich and famous.