Are you a startup owner looking for creative ways to generate cash to get going? As an entrepreneur, you likely have many ideas on products and services to help customers, but without the money to get started in the business, you won’t go far. Everything costs money, as you know for anything from product development and rollouts to payroll and inventory acquisition and you need to find a source of capital for it all. If you’ve been met with blank stares from financial institutions like banks, it’s time to turn your efforts to more creative sources of funding.
Accounts Receivable Financing
Also known as small business factoring, you can look into the benefits of accounts receivable financing, which is essentially the purchase of invoices at a big discount for the purposes of cash you need right away when it comes to working capital. Seeking out a reputable factoring company, that specializes in SMB factoring services, can connect you with financing solutions used not just by you as a startup but by large corporations the world over. Companies like New Century Financial, the best place to go for invoicing, offer Just-In-Time Cash invoice factoring programs that streamline all funding procedures that can take your startup to the next level seamlessly. Similar in operation to PO financing, factoring can give you immediate cash on your sales so you’re not waiting around for months for payment.
Personal Financing and Credit
You may not think you have much after all, you are just starting out but by looking at your own personal financing options and credit lines, you can explore options close to home. Saving money before you start your foray into the entrepreneurial world is a must, as you will have a hard time finding investors who are willing to put cash into your endeavor when they see you haven’t even invested your own money in it, says Forbes. In addition, there’s no shame in simply taking out credit cards to build your business. After all, you can maintain complete control and ownership, provided you keep up with at least the minimum payments.
Seek out your Peers
You may have heard of peer-to-peer lending before but may not have given it much though till now. This process involves the lending of money between peers, or groups of people, mostly online. You can seek out small business organizations just like yours or even ethnic and religious groups who support one another through funding at low interest rates. Be on the lookout for a successful entrepreneur who’s on a similar path as you who wants to make an investment in an innovative idea. Crowdfunding works in a similar way. This involves large groups of people, typically gathered online, who are willing to back your investments with small amounts that can really add up big.
The Power of Microloans
You may be able to get a loan in a smaller amount usually only up to $35,000 or so from private firms and non-profit organizations that are in the business of promoting the entrepreneurial spirit. This could be a viable option for you if you’ve been having trouble securing traditional financing from banks and other lenders.
Utilizing creative ways of funding that go beyond your hometown bank will open up new opportunities for your startup.
This article was contributed on behalf of New Century Financial, your number one choice when looking for help with the finances of your business. Check out their website at www.newcenturyfinancial.com
