As you might expect, financing is generally one of the most critical steps required before launching your new startup company. It’s no exaggeration to say that everything depends on getting funded before you launch your new enterprise. Given the importance of securing a solid source of funding, there are a number of sources you should consider, and try to take advantage of before launching your startup.

SBA Financing

While the Small Business Administration does have several requirements before approving a loan, they will still probably be far less stringent than a traditional bank would impose. The SBA itself does not lend money, but it guarantees a portion of your loan with any bank, which means it will be much easier to obtain. The most popular SBA loan is the basic 7(a) loan, which will allow you to either start, acquire, or grow your small business. Another possibility from the SBA would be its Certified Development Company (CDC) loan. This would be most useful during the later stages of your startup’s entry to the business world, since it provides long-term, fixed-rate funding for assets such as buildings.

Bootstrapping from Family and Friends

Bootstrapping is the process of funding a startup company yourself, or soliciting cash from acquaintances you have. The advantage of this approach is that you retain control throughout the entire process, meaning that you don’t have to surrender control or any part of ownership to an investor. Borrowing from family and friends is likely to be less fraught with requirements than with traditional lenders.

Angel Investors

Angel investors have become a very popular source of funding for startup companies. These individuals have ready cash to be lent to good investments, in exchange for some equity share in the company itself. Most of the time, angel investors are very experienced in the business world so they understand good investments, and they can actually help mentor a startup company to guide it through the early stages. In this way, it can become a mutually satisfactory arrangement which benefits both parties.

Need financing for your startup? 

Funding is often the biggest holdup to launching a new startup business, and if your startup is in this situation, we may be able to provide financial assistance. Contact us at Business Financing Corporative, so we can explore some possibilities for funding your startup.