Loan from your Business Bank

One of the most obvious routes to small business funding is a business bank loan, however in the real world these can be difficult to be accepted for unless you have collateral to speak of, or you are willing to put up personal guarantees to cover the debt if the business were to go out of business before the loan had been repaid.

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. It pays not to over look other lenders, even if your bank offers you a competitive rate.

Factoring (Invoice Finance)

Factoring can be a low cost way of raising quick funding. It is ideal for business with steady sales in the b2b market space. Factoring firms will provide business funding based on the value of your unpaid invoices. This is a viable route if you operate with high margins to justify the associated fees.

Credit Cards/Overdraft

Credit cards are great for unexpected purchases and for expenses. For a startup business with low initial launch costs credit cards can be a effective option. There are many interest free rates available so it can be a simple and efficient source of business funding. A bank overdraft is another option, however this is an unstable form of finance as the bank can remove the overdraft facility at any time.

Leasing

If you require business funding for the capital outlay for machinery or expensive equipment then leasing could be a safe bet. Leasing spreads the cost of owning critical business equipment over a set length of time enabling the operation to scale up pretty quickly.

Outside Investment/Equity Finance

Seeking business funding by releasing equity shares 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 capital injection. This type of finance also carries less risk to your possessions as you will not usually need to provide any personal guarantees to cover the funding needed.

An streamlined way to attract investors to your business is to register with Edge Venture and record an elevator pitch, this will get your case for business funding in front of hundreds of potential investors.

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