5 Genius Tactics to Fund Your Business
by Ronis Gracie on October 7, 2015

Read in 2 minutes

top-ways-to-fund-your-business-lendgenius

Starting and maintaining a small business is a challenge that requires the confluence of many elements:

An idea, a plan, the right people and tools and– perhaps most essential– the capital to accomplish it all!

It is this last factor that can be extremely daunting to budding entrepreneurs.

Take some time to investigate some of the following options, and you just might find that success is not as unreachable as it may at first seem.


RELATED:

6 Requirements for Getting a Small Business Loan

Why Small Businesses Don’t Get Loans from Big Banks

Business Owners: Do These 3 Things to Get A Loan Fast


Bank Loans

Perhaps the most traditional of your options, bank loans have some advantages.

They can cover short- or long-term needs and will help you to pay for whatever you require without restrictions.

However, you usually need to provide assurance of repayment by furnishing them with a personal guarantee such as a mortgage.

With banks, you can pay off the loan early if you have a sudden cash windfall, which could save you on interest fees.

SBA 7(A) Loans

The Small Business Administration (SBA) offers incentives to banks and other lenders that encourage them to provide small business loans to get businesses started and to help them with ongoing needs.

Regardless of what lending institution you decide upon, be prepared to furnish a significant amount of documentation with these types of loans.

In the end, they are often worth the trouble, since their interest rates are generally more manageable.

Tax Increment Financing

If you are a real estate developer, this money-making vehicle might work very well for you.

It depends on what state you live in, but you might get anywhere from 20 to 30 percent of the total cost of the project.

Furthermore, you might even be allowed to borrow against the subsidized value.

If the terms for these loans in your area are not as favorable as you would like, consider your neighboring states.

Contemplate making a business-favoring move if your options are significantly better.

Friends and Family

Although the thought of borrowing from your in-laws or other friends and relatives might make you squeamish, at least weigh the pros and cons.

If you can find someone in your circle who is willing to take a risk on your company at terms you are genuinely happy with, both of you might benefit in the long run.

The IRS

Of course, the IRS does not offer loans, but that doesn’t mean you can’t get money legally via your tax returns.

Deduct any and all expenses you can. A

s a business owner, investing in a good accountant could be one of the best financial decisions you ever make.

Use part of your profits to grow your business instead of having them eaten up in taxes.

Whether you borrow from your Aunt Tilly, secure bank, or small business loans, the need for short-term and long-term cash is a given.

Once your business begins to make a profit, don’t overlook the importance of putting some of those funds aside as a cushion for the next rainy day that is sure to come.

Being flexible and remaining prepared for any eventuality are two of the most enduring qualities of a successful entrepreneur.

Make striving for them a part of your goals and you will have a far greater chance of achieving your business dreams.

Featured Posts

Minority Business Loans – Discover 36 Opportunities Here

by Taylor Gordon on April 7, 2017
You may be searching for minority business loans because you have an idea for a great new business. Or perhaps… Read more

Small Business Loans for Veterans – A Definitive Guide to VA Business Loans in 2017

by Eric Goldschein on April 7, 2017
Small business loans for veterans are available through various channels and are also often supplemented with business development tools. Business… Read more

Small Business Loans for Women – Compare 38 Options in One Place

by Rebecca Hosley on April 4, 2017
When it comes to small business loans for women, knowledge is power. Women are not new to entrepreneurship, but they… Read more

Trump Pick Linda McMahon Has HUGE Plans for the SBA

by Eric Goldschein on February 17, 2017
Linda McMahon, Donald Trump’s pick to head the Small Business Administration, isn’t exactly synonymous with the word “small.” Along with… Read more

Business Owners: 5 Truths Your Banker Doesn’t Want You Knowing

by Jackie Lam on February 17, 2017
When looking for the best banks for small business loans, Bank of America and Wells Fargo may come to mind. However,… Read more

A Complete Declassified List of Tax-Exempt Fringe Benefits

by Amy Fontinelle on January 30, 2017
With all the uncertainty surrounding Trump's tax plan, tax saving tips for small business owners are as important as ever. Finding… Read more

6 Bad Habits to Break for Gigantic Business Growth in 2017

by Lauren Ward on January 24, 2017
As an entrepreneur or small business owner, the New Year is the perfect time to take a step back and… Read more

9 Cloud-Based Tools to Solve All Your Small Business Accounting Needs

by Caitlyn Rose on September 19, 2015
 As a hard-working entrepreneur, you should already know how important it is to keep a careful watch over every penny coming… Read more
Trending

SBA Loans: The Ultimate Guide to Government Lending

by Amy Fontinelle on February 7, 2017
Small business loans through the SBA fall under several categories and while they all have slightly different requirements, there's a few universal… Read more

An Epic Guide to Business Credit Cards, Charge Cards, & Lines of Credit

by Eric Goldschein on February 2, 2017
If you’re a small business owner, you know how important it is to always have extra capital on hand so you… Read more

The Trump Presidency & Your Small Business – What You Need To Know

by Eric Goldschein on January 19, 2017
As Donald Trump takes office, small business owners everywhere are wondering what to expect from the 45th president. While Trump’s small… Read more

5 Advertising Tools to Help Your Small Business Grow

by Ronis Gracie on September 11, 2016
If you would like your small business to flourish and grow, you need to offer unique products or services that… Read more
Learn More