Six Excellent Small Business Funding Sources to Improve Your Cash Flow Position
in Cash Flow & Forecasting on August 9, 2019
How to Get Your New Business a Running Start
These days, great value is found in the innovative and the new. Because of this, smaller and newer businesses have many outstanding web-based tools and opportunities to receive funding in order to succeed. And, as we all know, cash flow is key to establishing solid ground under your business’ feet. Thankfully, the rising interest in investing in small businesses provides a way for them to improve their cash flow position, due to the funding that these interested parties provide.
And while acquiring loans from a bank is the most traditional way for small businesses to receive funding, banks are ever wary of helping out businesses unless a sizable collateral is involved. So, here is a list of six alternative funding sources that won’t shy away from giving your business the boost it needs to your improve cash flow position and set you onto the path to success.
The internet these days is a force to be reckoned with. You probably already use it to keep your business’ name on the minds of the public through social media, or at the very least you use its resources to aid your team in its work. Why not use it for funding? Billions of cumulative dollars have been acquired in past years thanks to the small investments of the many contributors found on Crowdfunding platforms such as GoFundMe, IndieGoGo and KickStarter looking for the benefits that they can receive in helping your business grow. These organizations collect a percentage of the funding that you receive, so, in this case, interest rates and collateral are out of the picture. With these platforms, your business can amass a large following of contributors that invest small amounts of money to your business and its cause.
- SBA loans
If you’re willing to do the paperwork, an SBA loan can be a valuable resource to give your small business the boost that it needs. SBA loans were created by the government to aid small businesses in America since they are what fuels America’s economy. There are four different loans that a business can apply for: 7(a) Loans, Microloans, CDC/504 Loans, Disaster Loans, CAPLoans, and Export Loans. Since these are loans, there will be interest that is involved, but many businesses find the benefits, which range from money to land to inventory, worth the paperwork.
- Small business grant programs
Organizations are rushing to give aid to any promising new businesses that appear on the market. There are countless grants that give a platform to businesses that are technology based, innovative, run by women or minorities, etc. And if you don’t fall under these categories, there are still countless grants that can be obtained for every type of small business out there if you meet the criteria. And just like crowdfunding, there are no interest rates involved, which is good news if you’re looking to improve your cash flow position.
- Economic-development organization in local area
Another invaluable funding resource is an economic-development organization in your business’ local area. The main objective of these organizations is inclusive growth, and because of this, these organizations are perfect for putting your small business on an even playing field with your competitors. Many of these establishments are non-profit, and since they truly wish for small businesses in their own community to succeed, you can be sure that they will be more than happy to come to your aid.
- Networking to find investors
This one may seem complicated, but it might just be the most important funding source on this post. Attend conferences with like-minded individuals and get your business’ name out there for the investor attendees. This face-to-face version of networking will never be outdated, thanks to the value that is found in in-person interactions. Still, there are other ways to find investors through networking. Make use of the many social media platforms that today’s world has to offer, and form connections with well-established investors online. Linkedin is especially useful in this field, and using Twitter, Facebook, and other platforms is also invaluable in your search for investors.
- Equity financing
Equity financing works for already-established companies that have already acquired stock. In order to increase capital, businesses that implement equity financing by selling stock to interested investors looking for shares. This method of acquiring funds is best for businesses who are interested in increasing cash flow and wish to grow further after their business has its footing secured. Whether you’re there yet, this is a good funding source to have in your pocket.
We’re small business owners that have used these very methods to improve our own cash flow position. The team at FuelGauge knows how hard small business owners work to keep themselves afloat. We know that struggle, too, as a small, but mighty, band of enthusiastic small business promoters who work diligently to make business owners’ lives easier.
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