Loan from your Business Bank

One of the most obvious methods to small business funding is a business bank loan, however in practice these can be difficult to be approved for unless you have assets to speak of, or you are willing to put up personal security to cover the debt if the business were to cease trading before the loan had been paid off.

A good strategy is to start with your own bank, your existing bank will be in a good position to merit you for your good standing and trading history. Even if your bank offers you a favorable rate it pays not to over look other lenders.

Factoring

Factoring is a way of raising quick finance at low cost. It is ideal for business with steady sales in a business to business industry. Factoring firms will provide business funding based on the totals of your unpaid invoices. This can be beneficial if you operate with high margins to justify the associated fees.

Overdraft/Credit Cards

Credit cards are great for unexpected purchases and for expenses. For a new company with low initial operational costs credit cards can be a viable option. There are many interest free rates available so it can be a quick and effective source of business funding. An overdraft facility is another option, however this is an unstable form of finance as the bank can withdraw the overdraft facility at any time.

Leasing

Many business require funding for machinery or expensive equipment, in these cases leasing could be beneficial. Leasing spreads the cost of owning critical business equipment over a set length of time allowing the operation to grow pretty quickly.

Equity Finance/Outside Investment

Seeking business funding by releasing equity stakes in your business can be highly beneficial as outside investors, such as Business Angels can add experience and knowledge to your business as well as the funding you need. This style of finance also carries less risk to your possessions as you will not usually need to provide any personal security to cover the funding needed.

An inexpensive way to attract investors to your business is to register with Edge Venture and record an elevator pitch, this will present your business funding opportunity to many investors at once.

Edge Venture is a streamlined, efficient way to get attention from business angels looking for high growth business investment opportunities. Visit Edge Venture now to find out more.