Businessing Magazine Logo Businessing Magazine Logo

Tips on How to Get Funding for Your Business

Tips on How to Get Funding for Your Business

A startup is not a sprint. It’s a marathon. Every day presents new challenges and difficulties, but the biggest challenge to entrepreneurs is funding for their projects or startups. If you want to succeed in this business, you must find suitable funding sources to pursue your dreams. Read on to get a few tips that might help you find out how to get funding for your business.

Always Start with a Plan

Before you get to the actual process of seeking out investors, it’s essential to have a plan in place. A business plan will help you figure out what resources you need, how much capital you’ll need and what you’re going to do with the money once it’s in your hands.

Do your research into who would best suit your needs and what their requirements are before approaching them and ensure that you have done all the necessary paperwork beforehand so that they can make a decision quickly without any undue delays from either party involved in the transaction.

Startup Loans Schemes

The government’s Startup Loan scheme for businesses offers a great opportunity to borrow up to £10,000 to start a business. It is designed for people who have little or no borrowing history and have turned 18 in the last two years. Tens of thousands of people have used the scheme since it launched in 2012, and over £500m has been lent. The main benefits are:

  • No fees – you won’t need to pay any fees when using this loan.
  • Speed – you can apply through our website and get an answer within minutes.
  • Flexibility – you can use the money for whatever you like – there are no restrictions. The only restriction is that the finance must be used for your business. It is worth noting that this loan will significantly impact your credit rating, but with sensible use, this shouldn’t adversely affect you in future credit applications.

The only downfall is the process takes a while to process, so if you’re in a hurry you can always look at emergency alternatives such as Payday loans direct lenders.

How to Find an Investor

If you’ve already started your business and want to know how to find an investor, don’t worry. There is a solution. You can apply for a business loan with the help of a business loan broker who specializes in matching up businesses with investors. A business loan broker can make all the difference between getting funding or not and can mean the difference between success and failure for your business.

The first thing to do is think about what type of investor you want. There are angels, and there are VCs. Angels tend to invest small amounts of money in a business and have a more hands-on role. VCs don’t get as involved, but they often invest more considerable sums because they want a return on their investment.

Bank Loans

Bank loans for business funding are a great way to expand your business and take it to new heights. Loans from a bank can be obtained at a relatively low-interest rate and have a repayment time frame that can be as short as one year. The money obtained through these loans can be utilized in any way needed and desired by the business owner.

If you’re considering applying for a business loan, one of the first things you’ll need to do is write a business plan. A business plan includes your company’s goals and objectives, risk factors, and financing requirements. The information in your business plan will help determine if you qualify for a loan.

You’ll also need to put together a package that includes financial statements, tax returns, and balance sheets. If you’re not sure how to put together this kind of package, a local banker or accountant can help you.

short url:

by Brian Perry // Brian Perry is a contributor to Businessing Magazine.

Opinions expressed by contributors are their own.