you’ve probably heard that traditional investors can be difficult to find. And when they do invest in your startup, it’s likely that they’ll want a big chunk of equity in return. But don’t fret! There are plenty of ways to fund your business without resorting to outside money. Here are 10 alternatives:
Bootstrapping
If you have some money saved up, bootstrapping is a great way to get started. You’ll be able to keep more equity in your company and avoid taking on debt.
There are two ways to do this: 1) take out a personal loan, or 2) use what little savings you have left over after living expenses (if any).
Get Investors For Startup Personal Credit Card
If you’re just starting out, personal credit cards are the way to go. They offer the lowest rates and fees (and the best fraud protection!) compared to business credit cards. You can also get cash-back rewards on your purchases with certain cards.
However, if your startup is more established or has high revenue goals that require large amounts of capital to achieve them, then personal credit cards should be avoided when funding operations to get investors for startup as they have higher rates than business ones do.
Friends & Family To Get Investors For Startup
The next step is to ask your friends and family to get investors for startup. You should only do this if you are sure that they can afford it, and if they will be okay with losing their money. Before asking for a loan from anyone, make sure you have a business plan in place. This will help them understand why you need the money and give them confidence that their investment will pay off in the end.
- Home EQUITY LOAN (HEL)
A Home Equity Loan (HEL) is a way to borrow money against your home equity. You can use it to fund your startup, pay off credit card debt and even make improvements on your home. The interest rate for a HELOC is generally lower than that of a traditional loan, meaning you’ll pay less in interest each month.
The great thing about this type of loan is that there are no prepayment penalties or balloon payments, so you can pay off the balance at any time without penalty! Also keep in mind that when applying for an equity line of credit (Loan), closing costs may apply depending on how much money you want to borrow and which lender/bank makes their best offer based upon their own criteria such as credit score history records, etc…
Business Credit Cards (Aka Corporate Cards)
If you’re a business owner, there’s a good chance that you already have access to a corporate credit card. These are often issued by banks and other financial institutions as part of an employee benefits package, so if you haven’t received one yet, ask your HR department about it.
Corporate cards are similar to personal cards in many ways: they offer rewards points or cash back on purchases; they come with different tiers based on spending limits; and they can be used anywhere Visa or MasterCard is accepted (which is pretty much everywhere). But there are also some key differences.
You’ll need approval from someone higher up than yourself before using the card; you’ll have higher spending limits than on your own personal account; and if anything goes wrong with the purchase–say someone steals their identity using his Social Security number when buying something online–the company will be liable rather than just him personally having to deal with things like lawsuits or criminal prosecution after being caught by law enforcement agencies investigating fraud cases involving stolen identities
Personal Loan From Bank Or Credit Union
Get investors for startup a personal loan from a bank or credit union is a good way to fund your startup, but it’s not the best option for everyone. A personal loan will have interest rates higher than other types of financing, so you’ll need to consider whether or not you can afford to pay back this money with interest.
If you do decide that getting a personal loan is right for you, there are some other things worth considering:
- Is this really what I want? You might be able to find better ways of funding your business than taking out a loan (like crowdfunding). Before borrowing any money, make sure that this is something that makes sense for both your financial situation and long-term goals as well as helps grow your business.
Peer-To-Peer Lending Platforms
Peer-to-peer (P2P) lending platforms are websites that match borrowers with investors. The two biggest P2P lending platforms, Lending Club and Prosper, have been around since 2007 and 2006 respectively. They both offer good options for startups looking to fund their businesses without outside investors because they provide relatively low-cost loans with high approval rates.
Prosper is better suited for larger loans ($25k+) while Lending Club’s products tend to be smaller ($5k-$25k). The approval rate on both platforms is above 90%, but Prosper offers slightly better rates than Lending Club overall–6% vs 5%.
Lending Club And Prosper For Business Loans
Lending Club is a peer-to-peer lending platform that connects borrowers with investors. On Lending Club, lenders and borrowers can connect directly on the platform.
Prosper is another peer-to-peer lending platform that offers business loans as well as personal loans. Like Lending Club, it’s been around since 2007 and has since grown into one of the largest online lending platforms in America–with over $2 billion in funded loans across over 1 million members (as of 2018).
Small Business Administration (Sba) Loan Guarantee Program
SBA loans are available for businesses that can’t get a loan from a traditional bank. They can be used to fund a startup or to buy equipment, refinance existing debt, and fund working capital. The Small Business Administration (SBA) offers these loans with low-interest rates and guaranty funds to lenders who finance small businesses in America.
Conclusion Get Investors For Startup
If you’re looking for a way to fund your startup, these options can help you get started. They’re not all-inclusive and there are many more out there, but they cover some of the most common ones that small businesses use every day.
