6 Reliable Startup Financing Options for First Time Entrepreneurs

A lot of people want to get rich. They work so hard to obtain a lot of cash and that is a fine concept. But, if you ask the rich people, there is a high probability that the way for you to get truly rich is for you to have your own business.

Knowing that fact, you might want to put one up now. However, there are two things that you need to do before doing so. First, you need to have an idea of what you are going to sell. Second, you need to have the capital to have it up and running.

If you are a first time entrepreneur and want to know the most reliable and less stressful ways to fund your startup, then you’ve come to the right article! Today, I am going to talk about 6 options with which you can get reliable capital to fund your business startup.

1- Business Credit Cards

Did you know that there are credit cards that can be used for businesses? Although you can use your personal card for transactions, a credit card specifically made for businesses is much better.

There are a lot of advantages to getting a business credit card. It has a much higher credit limit, there are perks whenever you use it for major equipment purchases, and it can also help with your venture’s credit as well.

Just make sure that when you sign up for one that you do not accidentally link this up with your personal card as it can affect your credit score if you do not pay up on time.

2- Government Grants

If what you’re selling is something that can benefit society, then you can sign up for a government grant.

Some governments give the necessary capital to businesses that aim to promote and better the lives of the community.

If you’re planning on selling gadgets or if you sell services like research and development, you are eligible for a government grant.

Research online if your local government hands out grants for businesses.

3- Alternative Financing

It can be a hassle to get capital and that is what newbie business-owners tend to experience. Fortunately, we live in the digital age now where getting the money that you need is as easy as going online and borrowing from an online entity.

An example of this are short-term loans. The great thing about cash advance online is that it gives you some financial aid so that you can have your business up and running.

Do note that you’re not limited to just this scheme as you can pretty much get other types of loans as well. Though, I would say that it will not be as convenient as the first option.

4- Crowdfunding

Similar to government grants, if you plan on selling interesting and useful products, then crowdfunding is another great financing option for you.

Crowdfunding has become quite popular, especially for startup businesses. The key to being successful in this platform is that you tell people everything there is to know about the products you’re selling.

For example, if you plan to sell an Android watch, what makes it different from the ones that are already on the market? Be transparent and tell them everything- from the features to the specs.

If you’re truthful about the information you’ve presented to them, people will definitely be happy to donate to your cause.

Related Reading:

77 Best Crowdfunding Websites to Fund Your Startup

5- IRA Financing

Have you been putting money into your retirement account? If so, then good for you! It is good practice to do so because we all have to retire at some point.

But, did you know that you can tap into your retirement fund to help finance your business? Now, this can be a risky move, but it will all be worth it once your business has launched.

Do note that there might be some penalties or fines when you withdraw from your IRA too early, but just make sure to keep those in mind and pay in due time.

6- Family and Friends

Last but definitely not the least is borrowing money from your friends and family. Look, I get it that it can be hard at times to ask from your loved ones, but being polite about it and telling them what your plans are about your business can actually be a good thing.

You see, even though the thought of asking money from your friends and family is daunting, there is a big chance that they will be willing to help you in any way they can.

Again, just be polite, tell them everything there is to know about your venture, and then accept if they let you borrow money or even donate some capital to you, and do not discount the possibility that they might not give you anything at all. Whatever happens, just accept it. At least you tried.

Conclusion

Nothing can get you richer than a business. Once you have the idea on what products or services to sell, it is now time to get enough capital.

You can start by getting a business credit card, applying for government grants whenever its applicable to your venture, employ alternative financing measures, use crowdfunding platforms, tap into your retirement fund, and even asking from friend and family are all viable options for you to get money for your startup business.

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