You came up with a great business idea, wrote a business plan and already spent your hypothetical first million on luxury cars and vacations. But before you drive your new Ferrari, you’ve got to sweat building a business of your dreams. And the first obstacle to overcome on your way to success is getting approved for a bank loan. The good news is lending money from a national financial institution is not the only option; it doesn’t mean you have to give up on your dream. There’s a better, trusted, faster way to get your startup funded. That way you can concentrate on what leather color to choose for your red Ferrari. But first, let’s see in detail all possible options so you know what you’re choosing from.
If it’s your first startup and your credit history is not exceptional, your options are pretty limited. Big banks most likely won’t give you a loan, unless you have existing assets, a house, for instance, that you’re willing to put at risk. In this case, a Small Business Administration loan is best for a new or expanding small business to get infusions of cash without the usual backup requirements. The fees for SBA loan are usually the same as non-guaranteed loans. Times Square Consulting provides with long-term, fixed-rate financing for major fixed assets. Besides. we offer a Microloan Program of up to $50,000 for small business concerns.
To get your startup funded, you can shop around and try to find an investor. There are professional venture capitalists looking for proven business models to invest in. You’ve got to have a team and a pitch and a business plan that requires at least a couple of million dollars in investments—big players on the arena of startups investments are only interested in big opportunities. Angel investors are also an option to get your startup funded. Any metropolitan area, especially like New York, is loaded with high net-worth investors looking for startups to invest in. Usually, they suggest smaller amounts but you can still raise up to one million dollars.
A startup incubator is another option to consider if you’d like to save on certain expenses like an office space. But all venture capitalists, angel investors, and local groups require research, leg work, impressive sales skills, persuasive pitch, and devotion to your dream.
Crowdfunding is great because the enthusiasm of your investors is based on the reward you’re giving them back, be it a cool T-shirt, your product delivery or your firm’s equity. The only and major problem with this type of funding is you either get all or nothing. No guarantees your startup will achieve the announced amount required. And that’s tricky and uncertain.
The process of getting a federal grant is long but free of fees of any future equity. If you ever applied to Affordable Housing in New York City, you can count on government business funding too. Don’t complain if you wait for nothing. We warned you.
Family and Friends
Pitching your family and friends is the most common piece of advice available online on how to get your startup funded. Your business requires a lot of money, thousands, hundreds of thousands, even millions of cash flow for operational needs. Maybe you have a rich uncle Sam whom you’ve seen twice in your life yet he’s that kind of a supportive relative—lucky you. Before you start ruining your relationships with your friends and family—people you actually like—here’s how to check whether they’ll invest in you: try to sell them your independently published book for $10, will you?
It’s not a big secret, but most of the startup founders invest their own money. It takes a bit longer to grow your business organically but you stay in complete control and don’t have to confirm with shareholders every single time you make a decision. Obviously, you need some capital for starters.
Today, you don’t need to wait while you save enough to live in the house of your dreams, drive a car of your dreams, do anything you dream of. Instead of waiting, you can get a mortgage, a lease and a loan to get your startup running. Today is the day to start making dreams come true. The cost of your dream is lower than you think. When a bank refuses to loan you funds and finding an investor takes an insane amount of time and effort plus percentage in equity, you can apply for a fast and secure startup funding. This way, you keep 100% of the ownership of your business (unless you already have a partner, then that’s on you). You also stay in control of how much you pay and when you pay.