Many entrepreneurs have brilliant business ideas, yet without adequate funding, a great business idea will remain simply an idea, and with so many business plans that have to be shelved due to lack of funding, sourcing the capital can be challenging at the best of times. Convincing a private investor that your business idea will work can be extremely difficult, and with that in mind, here are some ideas on how to fund a business start-up.
- Approaching a Bank – This is the traditional way to fund a new business, and it is probably the most difficult as well. One thing you will need is a very good business plan, and be prepared for the bank manager to try to find fault with it, which they very often do. If you own property, then you could use this as collateral for a business loan, but even then, the bank will want to know how you plan to repay the money.
- Bitcoin Loans – If you own some Bitcoin, you can actually borrow money using the Bitcoin as security, and the amount you can borrow would be determined by the lender. The people who offer Bitcoin loans are usually Bitcoin dealers, and wherever you are in Australia, you will never be far away from a reputable Bitcoin dealer. Once you have located a nearby Bitcoin dealer, pay them a visit and they would be happy to discuss your loan requirements.
- Online Lenders – There are many advantages to using an online lender when looking for start-up funding, as many do not require any form of security, although this would depend on your credit score and your banking history. While a traditional bank would take weeks to make a decision, the online lender will usually give you an answer in a matter of minutes, and in many cases, the funds are deposited in your account on the same day you applied for the loan. Some lenders might require security, especially of you are borrowing a large amount, while others would be happy to lend with a personal loan, which is something you can discuss with the lender.
- Fund Me Pages – If you are very confident that your business idea is a winner, and you have exhausted other avenues for funding, you could set up a fund-me page, whereby private investors pledge specific amounts of money towards your start-up costs. The great thing about using a fund-me page is that you do not have to repay the money, which really helps when setting up a business.
- Refinancing the Home – If you have adequate equity in your home, you could refinance the mortgage, which would give you access to your equity when you really need it. There are several advantages to doing this, namely, the interest on the new mortgage would likely to be less than any other form of loan.
The above are some of the ways you should consider when looking to fund a business start-up, and providing you have done your homework and have a good business plan, there’s no reason why your new business won’t be a success.