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by Michelle Griczika on Apr 11, 2023 2:26:35 PM
Are you a new business owner with big dreams? Are you looking for ways to fund your new venture but don't know where to start? Don't let the idea of funding stop you in your tracks! Plenty of resources are available for entrepreneurs like you who need extra financial help.
From business credit cards to loan crowdfunding, there's an option out there that will work best for your unique situation. We'll discuss various ways to access financing and resources when starting or expanding a small business. You'll also get valuable tips on applying and budgeting once the money comes through.
Challenges New Businesses Face in Finding Funding
Small businesses are the backbone of any economy, bringing innovation, jobs, and vitality to local communities. However, many new and small businesses can find it a challenge to find the funding they need grow and thrive. Securing a loan with limited resources and no established credit history can take time and effort. Additionally, many new businesses face discrimination in lending due to their size and lack of collateral. But don't despair! Many options are still available to new business owners, including alternative lenders and business charge cards. With determination and resourcefulness, any new business can overcome these hurdles and access the capital they need to succeed.
Find the Right Source for Funding Your New Business
As a new business owner, finding your venture's funding source can be overwhelming. But the rewards of securing funding from the right source are immeasurable. Investing time and effort in finding the right funding source can give your business the boost it needs to achieve its goals. It can enable you to expand your operations, hire new employees, and invest in new equipment or technology. The right funding source can also provide you with valuable mentorship and networking opportunities, which can be invaluable for your business. So, while finding the right funding source may seem overwhelming, the rewards are well worth the effort.
#1: Fundid Business Finance Platform
Fundid is a business finance platform that provides funding solutions for all businesses. The platform offers a variety of financing options, including business grants and loans, to help businesses obtain the capital they need to grow and expand.
Explore Fundid's Business Loan Marketplace
As a business owner, you constantly look for ways to grow your business. And the one thing that can hold you back is a lack of capital. Fortunately, Fundid is here to help you explore your options and find the best solution for your business. Whether you're looking for working capital, a term loan, or equipment financing, Fundid has got you covered! Start exploring your options today and take your business to the next level with Fundid.
#2: SBA Loans
The U.S. Small Business Administration for resources and opportunities to secure the financing you need. This government agency offers a variety of loan programs. They even provide counseling and training services to prepare you and your business for success. With the SBA on your side, the possibilities for growth are endless. So don't let financial worries hold you back.
Types of SBA Loans:
- SBA 7(a) Loans: These loans can be used to purchase business real estate, meet working capital requirements, refinance current business debt, or purchase equipment.
- SBA 504 Loans: The 504 loan program provides long-term, fixed-rate financing of up to $5 million for major fixed assets that promote business growth and job creation.
- Microloans: The microloan program provides up to $50,000 to businesses seeking to start up or expand.
#3: Your Local Bank or Credit Union
When looking for funding for your small business, your local bank or credit union can be a great place to start. These traditional financial institutions are often more familiar with the local business landscape. Plus, working with a local bank or credit union means you can build a relationship with a lender who can provide ongoing support as your business grows.
#4: Grants
As a new business owner, knowing where you can find funding to help grow your business is important. One option to consider is grants. Grants are essentially free money awarded to businesses for specific projects or purposes. They don't have to be paid back like loans, making them an attractive option for many entrepreneurs.
However, finding the proper grants for your business can take time and effort. That's where Fundid comes in. Fundid offers a Grant Marketplace that is updated weekly with new grant finds. With some help, you could find the perfect grant to take your business to the next level.
#5: Loan Crowdfunding
Loan Crowdfunding allows you to pitch your business idea to a large group of people interested in investing in the growth of your new business. It is a method of raising capital for a project or venture by asking a large number of people to each contribute an amount of money, usually only a small amount, typically via social media and your network.
Who is Honeycomb Credit for:
- Small businesses in food & beverage, health and wellness, and retail industries
- Business owners with at least a 625+ FICO credit score
- Small businesses with at least 250+ social media followers
Ready to start your loan crowdfunding campaign to launch your business growth? Get started with Honeycomb Credit today!