6 Unique Business Financing Options You May Not Have Considered

Funding is crucial for any new venture. Without sufficient capital to start with, the company may not have the funds to market to a wider audience, produce enough product, or expand its workforce.

While there are many traditional ways to seek funding, such as taking out a loan from a bank or finding an investor, there are unconventional ways that a startup owner may not have thought of that could help to get his business off the ground. Below, six Fast Company board members offer some financing options to consider as a new company.

1. FIND FLAGGSHIP PARTNERS.

A creative financing option for new businesses is to reach potential customers and make them your company’s most important partners. They benefit by having early access and input on what you create, and they can participate in the upside as you grow. This is about building credibility, runway and endorsement from a partner you can trust. – Tony Martgnetti, Inspired Purpose Coaching

2. LAUNCH A CROWDFUNDING CAMPAIGN.

Crowdfunding is a very powerful way to generate interest and prove a company’s concept. Even if you don’t raise a million dollars on Kickstarter, you should consider a crowdfunding campaign that will instantly build a community for your business and get people excited to invest in your business’ success. With this community, you can use VC or other investment opportunities more successfully. – Catherine Merritt, Spool

3. USE DEBT CAPITAL IF NECESSARY.

Think about the last time you went to the supermarket or paid for gas. how did you pay Most likely you paid with a credit card. Buying things with borrowed capital is normal in our society. Ironically, startup founders often shun the prospect of leverage as a form of funding for new businesses, even though most startups are formed as LLCs, which limits personal liability. – Danny Lohrfink, wealth

4. TRY “CREATIVE SUPPORT” SOURCES.

There are many ways to finance a business, even a term called “creative finance” that isn’t just our simple loan, venture capital, friends and family, and more. A unique financing option could be monthly credit terms with suppliers with vendors. So, being able to collect payment from our clients or customers before paying our suppliers helps to self-fund a brand new business. – Royston G King, Royston G King Group & Companies

5. REDUCE PERSONAL FINANCES.

Assess your assets and identify ways to build your own business such as: B. downsizing your home or realigning your priorities and spending habits. This allows you to start your business small and test your concept locally before scaling. – Kelley Higney, Bug Bite Thing

6. USE A ROBS STRUCTURE.

Founders can take advantage of the unique structure of a ROBS (Rollover for Business Startups) by using funds from an IRA or 401(k). While risky, if the business is legit and the founder has significant funds in their retirement account, this method can be a quick source of cash without having to pay any previous withdrawal penalties. Make sure you seek professional advice to avoid problems. – Tyrone Foster, InvestNet, LLC

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