Real Estate Innovation

5 Techniques for Business Funding

Bank Financing

One of the most typical routes to business funding is a loan from your business bank, however in practice these can be difficult to be accepted for unless you have assets to speak of, or you are willing to put up personal security to cover the debt if the business were to cease trading before the loan had been repaid.

Starting with your own bank can be a good strategy, your current bank will be in a good position to merit you for your good standing and track record. Even if your bank offers you a favorable rate it pays not to over look other lenders.

Factoring

Factoring can be a low cost way of raising quick funding. It is ideal for business with steady sales in a business to business industry. Factoring firms will provide business funding based on the totals of your outstanding invoices. This is a viable route if you operate with high margins to justify the fees associated.

Charge Cards, Credit Cards or an Overdraft

Credit cards are great for unexpected purchases and for expenses. For a startup business with low initial launch costs credit cards can be a viable option. There are many interest free rates available so it can be a quick and effective source of business funding. An overdraft facility is another option, however this is an unstable form of finance as the bank can withdraw the overdraft facility at any time.

Leasing

If you require business funding for the capital outlay for machinery or expensive equipment then leasing could be a safe bet. Leasing spreads the cost of owning important business equipment over a period of time allowing the operation to grow pretty quickly.

Outside Investment/Equity Finance

Seeking business funding by releasing equity shares in your business can be highly beneficial as outside investors, such as Business Angels can add experience and knowledge to your business as well as the capital injection. This form of finance also carries less risk to your possessions as you will not typically need to provide any personal security to cover the funding needed.

An inexpensive way to attract investors to your business is to register with Edge Venture and record an elevator pitch, this will get your case for business funding in front of hundreds of potential investors.

Quickly locate business funding from Business Angels and Venture Capitalists using Edge Venture. Save time, money and effort. Visit Edge Venture now to learn more.

- Simon Murray