Do you have a great business idea that you are certain will make you instant cash, but are stuck because you don’t have the finances to fund the idea? Then you are not alone. There are so many great ideas that have not seen the light of day because of lack of capital.
About 90% of the established businesses you see today took long to kick off because of capital challenges. So, instead of sitting and waiting for manna from heaven, try to get funding through these tips
1. Apply for a title loan.
This is a loan that you take against your car, so this can only apply if you have one. So long as your car is in good condition, just walk into any lender offering title loans in Provo and apply for one. The lender will give you at least an amount equivalent to 25–40% of your car’s value.
Title loans are short-term loans that need to be repaid within 30 days, but should you require more time, the loan will just roll over, and you will pay the indicated interest. This is a good idea for a small business with a quick turnaround.
2. Borrow from family and friends.
Yes, this may not seem so appropriate, but it is the best start. The good thing with family is that they will not charge you interest and if they do, it will not be some crazily high interest. Also, they will give you ample time to refund the money.
The downside is that most will not be very willing to fund a completely new idea, but it is up to you to convince them that your idea is viable. If possible, present to them your business plan as this will further convince them.
3. Secure a bank loan.
Most people fear bank loans because of their high interests and strictness in lending. But if your credit history is good, then you have nothing to worry about. So long as you maintain the repayment agreement.
When applying for a bank loan, make sure that you have researched your business idea and you are certain of its viability. Banks only lend when they know there is a higher chance of the business picking up.
4. Apply for government loans.
The U.S. Government is always giving loans to start-ups and struggling businesses in order to boost businesses. The government understands well that the backbone of their economy lies in the private sector. This will definitely give you a nice start for your business.
5. Get a microloan.
If you are looking for a small loan between $500 and $30,000, then a microloan would be the best. Microlenders are always ready to offer small loans to entrepreneurs and startups. You don’t need to have any credit history or collateral.
They also don’t require so much paperwork as long as you prove that you can repay the loan. The interest rates are slightly higher than bank loans, though.
As you see, there is no way you can totally lack the means to finance your business or business idea. So, that should not be a reason to shelve your idea as you wait for miracles to happen.
If you are really determined, you can even sell off some of your assets. After all, you can always recover them once business picks up. Have you tried sourcing for funds through one of the above ways? Did you succeed?