Are you looking for capital for your new business? There is a good chance that you are looking high and low. The truth is that raising capital during the startup phase can be difficult. This is especially the case if you are still in development. When you are in the development phase, profits may be far off, which means that investors will have to wait for their return. However, with a little savvy, it can actually be easy to find startup capital. All you have to do is put in the time, energy and legwork. Also, you need to get a little resourceful and crafty. Here are some places to look for startup capital.
- Angel investors. If you are looking to start your business sooner rather than later, you may want to tap into the resources provided by angel investors. Angel investors are a unique source of capital, because they will often give out riskier loans and investments. The return obligation may be high, but it may be worth it if you have a solid business plan and clients lined up.
- A factoring firm. Another option is to tap into a factoring firm’s capital resources. A factor is a type of lender that gives out loans based on orders on hand. For instance, if you have purchase orders from clients or retailers to produce orders, you will present these invoices to a factor and the firm will give you the money you need. The loan will be paid back when the invoice is paid. When it comes down to it, a factor can often be a saving grace for a business that has orders and not enough money to produce product.
- Venture capitalists. If you have a solid business plan, you may want to get some venture capitalists on board. Venture capital firms will usually inject high value investments into businesses that they believe will succeed. The money they use usually comes from an investor pool. You can find venture capitalists by looking up firms in your community, or you may want to visit investor seminars. You can usually bring your business plan and schmooze with other investors.
- Cash advance loan. Another way to get a quick investment is to tap into a company that offers cash advances. A cash advance company, like Express Capital, will offer a capital advance based on projected income. When going this route, you want to know exactly how much you need, because you don’t want to be in a situation where you owe more money than you borrow – this can happen when interest rates start to mount.
- Crowd fundraising. On top of everything, you may want to think about starting a crowd funding campaign. A crowd funding campaign is usually set up online. First, you need to have a set amount of capital and you need to have a deadline for when you need your money. You will then set up various incentives for investing. In the end, this can be a great way to get money for your business and not be too indebted.