Finding financing can be quite challenging in an economic climate of any kind. You know that you
require fund for your business, however not sure of the best option. You could easily apply for
funding from the bank, get hold of an investor, borrow from friends or family, and work with a
factoring company. These all are viable options. However, all of it mostly depends on the situation.
Here are the top financing options for the existing business you own:
Bank funding
The bank is usually the first stop in the search for financing. Acquiring business funding can be a
quite complex and lengthy process. The banks will likely need several years of financial statements
and tax returns, everything of which needs to be prepared by the CPA.
In addition to this, they may also want to check the business plan along with a detailed budget. Your
business needs a strong credit story where each owner likely requires a high credit score. However,
after all of these, the decision of approval depends on the subjective feeling of the underwriter
about the business.
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Investor
Another top financing option is finding an investor. A private investor is an excellent source of quick
cash. You need to assess their flexibility in determining their terms of requirements. In addition to
this, an investor may also have various other elements which you would find with the traditional
lenders. The investor, for instance, might be interested in having an ownership stake in your
business.
The investor might not be done yet. He/she might want to have some critical say in crucial business
decisions. They may even be interested in attaining complete control in the business. It all depends
on the amount of equity you have.
Close friends and family
Close friends and family might be a great source of capital for your existing business. This is
especially true for the start-ups who might not be able to resort to any other options. Your friends
and family might overlook issues which banks and investors might be objecting to like lack of a plan,
business history, or credit issues.
Factoring
Factoring is a great finance method wherein a company is willing to sell the receivables at a specific
discount for getting cash up-front. This is often utilized by companies having poor credit or even by
businesses like apparel manufacturers who need to fill orders much before they get paid.
Make use of a credit card
Using a credit card for funding the business is quite a risky business. If you fall behind in clearing
your payment, your credit score might get whacked. However, this is not true when used
responsibly. A credit card can help you out of any occasional jam and help extend the payable period
of the accounts to shore up the cash flow. By acting responsibly and keeping track of the credit
utilization, you tend to build a reliable business score gradually.
BizFunds’ Working Capital Loans
Working Capital Loans from BizFunds is the easiest and hassle-free financing you’ll come across for
your business. These short term, largely collateral-free loans can be used by SMEs to meet their
immediate business requirements and help them manage their working capital cycle better.
You can avail these loans to purchase raw materials like steel, polymer, chemical, yarn paints, inks
etc for manufacturing your product and for industrial supplies/MRO products like safety tools,
power tools, electricals, appliances, hardware, medical supplies etc- all the equipment you could
possibly need for your manufacturing process- now on easily customizable loans by BizFunds.
Avail the amount you need and maximise on multiple payback options and facilities like doorstep
assistance so you don’t have to struggle for any financing at all.