Getting Money For Your Business

Getting money for your business is something that every single entrepreneur wants, making it that much more of a competitive marketplace.

Here are a few of your options to get money in;

1. Banks
If you do not have collateral, this may not be an option. Banks are in this industry to make money, but they will protect themselves. If you are looking for $50,000 as a start-up and you do not have collateral or are willing to put your house up to secure this, it will be extremely difficult to get a loan or line of credit. With an existing business, you are in a better position and should start by asking a banker that you have built a relationship with.

2. Investors
If you are not willing to give away a portion of your business, this may not be an option. Investors will want a big piece of the action and most of them want control as they will want to make sure that their decision matters when it comes to the use of their money. Make sure that you bring in investors when you are willing to do this or when you have made your business' value high enough to support this investment while maintaining your majority share.

3. Government Grants & Loans
The government creates grants and loans to stimulate parts of the economy through businesses. Most of the government mandates are to support innovation and employment. Innovative grants and loans are in the technology, agriculture, diesel, education, medicine, and many other industries. However, many of these programs are tax rebates and loans rather than grants, and this trend is continuing as the government is seeking to incent established companies who would pursue this innovation regardless of having government financial support.
For employment, the mandate is to support unemployed or difficult to employ individuals. When applying for many of these programs, your company would have to ensure that you are helping the community and unemployed individuals who require this type of assistance.

4. Sales
Sales is self financing of a business and it is an excellent way for other options (governments, banks & investors) to be more interested in lending. Is there a way to get sales earlier? This is a good option to consider.

5. Family & Friends
This is your last resort, but also the most likely group to invest when you don't have sales and the rest of your options are gone.

Consider all of your options when seeking finance, but be realistic of what is needed with each option.