In the current financial climate, many banks are simply not lending money to businesses. So we’ve put together some tips to help you find alternative sources of raising capital for your business
At the minimum, we hope the tips below point you in the right direction to finding alternative sources of investment for your business. If there are any tips you would like to add, feel free to post it in a reply along with a link-back to your website.
- Write a business plan, which clearly shows the amount of money you need to raise and how you will spend it in your business. These plans are always required when you go to the bank. However, even if you are not looking for a loan from the bank, it’s useful for yourself as it makes it clear how much you need and how you will go about spending it. It may also be useful when you are trying to raise money from other sources.
- You could lend some money from your personal bank account to your business bank account as a loan. If you’re working, you could set aside an amount from your earning each month for your business.
- You could use a crowd-sourcing website, which essentially allows you to put up your business project and then other users of the website can pledge money towards your business project for something in return. Further information about crowdsourcing can be found at Crowd sourced Funding.
- You could ask associates, friends and family if they would like to invest in your business by purchasing shares in your business.
We hope the information here has helped. This is by no means an exhaustive list of tips, so feel free to add your own tips and a back-link to your website if you wish. Do check out the the following websites for more information regarding financial help for your business:
Money image courtesy of cooldesign / FreeDigitalPhotos.net