Getting money that you can put into your business isn’t always easy. You might feel like you’ve tried everything to come up with funds, but maybe you’re hitting a wall.
We’ve come up with several ways to procure money for your business if you need funding. We’ll talk about a few of them now.
You see crypto’s influence everywhere. Maybe you’ve seen commercials for crypto platforms where you can trade different forms, buy them, sell them, or even take out crypto-backed loans.
If you’re trying to generate money for a company through crypto, you can get a crypto-backed loan, but you can also buy some crypto and then sit on it to get money from the interest. That will only help your company in the long term, though, so you might have to look into other options if you need an immediate cash infusion.
CoinLoan can bring you 10-12% APY on crypto, so that’s one of the platforms you might use if a long-term investment strategy appeals to you. That’s much better than you can do with a traditional bank savings account.
You can also try to raise money for your business through crowdsourcing. Maybe you’ve heard of platforms like IndieGoGo, GoFundMe, Patreon, and others.
Crowdsourcing only works if you appeal to the masses regarding a company or business idea they like. It is not always that easy to come up with an original notion that you think people will fund.
Often, it’s less about your idea and more about how visible you can become. If you’re on social media but only have a few dozen followers, you’re not liable to attract the attention you need to meet your monetary goal.
You need to try and come up with a way to go viral. If you can get a local news channel to report on your efforts, that might do it. Human interest stories generate a lot of popular support, and you can leverage that to get people to donate to your cause.
Venture Capital Firms
Approaching venture capital firms might intimidate you, but people try it all the time. Remember that they can always turn you down, but that’s not the worst thing in the world.
To try and secure funding for your company this way, you’ll need to come up with a business plan that excites potential investors. Venture capital firms love ideas that they feel break away from traditional molds and experiment with new paradigms.
If you’ve got an established company that needs a cash infusion, that’s another time getting money from a venture capital firm might work. You may not have the most original idea, but if you’ve shown you can remain solvent in a particular niche, you might still get these investors to back you.
Borrow Money From A Credit Union Or Bank
Banks and credit unions work well if you need cash for your company. For centuries, they have lent business owners or would-be company owners money and charged them interest.
Banks are for-profit entities, so it’s in their best interest to lend you money. They might not do it, though, if you don’t have very good credit or you don’t have a professional-looking business plan.
Work on your credit before you approach a bank or credit union. If you get it to an acceptable number, the lending entity will probably work with you.
You can also think about putting up something like a car or house as collateral. You might get the money you need that way, but it’s risky. You’re betting big on your company’s success, which can always backfire.
Borrow The Money From A Relative
Borrowing the money that you need from a friend or relative who has it probably isn’t the most appealing idea. You will have to treat them very nicely, and maybe you’ll grit your teeth while doing it. If you have an excellent relationship with this person, you should have no problems, but if you’d prefer not to owe them a debt, you might view this option as a last resort.
If you have a wealthy relative or friend, though, you might regard this as the most realistic cash-raising method. They probably won’t charge you as much interest as a bank or credit union would.
This might change your relationship with that person, though, so keep that in mind. If you can’t pay that money back expediently, that can create some discomfort or even animosity between you.