Coming up with an idea for a new business is not easy, but if you do have one, then finding the financing can be even harder. An article in the Telegraph says that 581,000 new companies were formed in 2014 and the number is set to rise.
Quick cash boost
You may have some savings, but the sum is just not enough to get your company started. There are many different instant loan schemes available and Car Cash Point is one of them. Borrowing money against the value of your car might be a short term answer to your problems, but check the interest rates before you take out a loan. You don’t want to be stuck with a debt you can’t keep up with.
Some manufacturers, if approached with a sound business plan, might allow you to take goods for your startup and defer payment for 30 days, or until you have sold them. Obviously there will be a time limit as they have bills as well. Many entrepreneurs are so engrossed in setting up the company that they forget to save money in the first place. You stand more chance of getting a loan if you have some capital.
An article in the international magazine Forbes has some innovative and obvious financing ideas for Small and Medium Enterprises (SMEs). Using a credit card may seem like an expensive way to raise money, but as long as you pay the minimum monthly amount you won’t incur large interest charges. Some cards are interest free for the first year and then you can swap to another provider.
EU funding scheme
A new European Commission funding scheme worth 2.8 billion euros for SMEs and micro businesses was set up at the end of 2014 according to an article in the Huffington Post. The maximum that can be applied for by a single enterprise is 3 million euros and also includes business support and mentoring.
With the power of the Internet you can now gain access to millions of people who will like your product or ideas enough for them to back you with small amounts of money to help you start up. Some might just donate because they want to help, others may want to receive mementos or take a small equity.
This form of financing or lending has been around for a long time and involves a group of people getting together to lend money to each other. Mainly they will be like minded people who have already succeeded with their own business and will be willing to give you advice as well as money.
Friends and family
Many people say you should never borrow from family or someone close to you, but it may be your only option. If you do decide to try this type of financing for your startup you should always seek the advice and help of a solicitor. Put everything in writing and there will be no arguments when the money has to be paid back.