Demaurio Clark finding finances for a new business in the Post-COVID economic climate can be challenging, especially when looking for funds for your start-up business. Finding capital to expand also or money to get through the lean times is tough for small businesses. To help you find enough money, you need to keep your business up and also running. Here we have compiled 7 financial fundraising techniques you can try out.
1. Consider invoice factoring
Factoring is a method in which a business sells the receivables at a discounted rate. To the factoring, financiers to get upfront funds. This is used by companies having poor credit or the businesses which need running capital in short cycles as apparel manufacturers etc. This exchange of funds will let the companies have their receivables. Honored as and also when the invoices are raised and use the funds to meet the running costs.
2. Try for bank loans
Bank loans are the most conventional and also secure mode of fundraising. However, as we can see, the lending standards and requirements are much stricter and stringent lately. Making it difficult for small businesses to get one approved. However, there are many loan schemes for SMEs on offer, which you can apply to see the response.
3. Demaurio Clark smart tip – use only business credit cards
Using personal credit cards to fund your business is something very risky. If you fall behind the payments, then it may affect your credit scores instantly and also put you into deeper troubles over time. Try to get avenues for business credit if possible and always pay out at least the bare minimum each month to not create a hole in your repayment schedule. As Demaurio Clark points out, credit cards can help you get rid of the blocks in fund flow if used responsibly.
4. Check out option for crowdfunding
Crowdfunding sites like Kickstarter.com can be of use to find funds at a relatively lower cost. You can set your goal as to how much money you have to raise and also at the same time frame. Along with your family and friends who support you, there can be even strangers who are impressed. With your business ideal out there to help you out.
5. Pledge your future earnings
If you are a young and also ambitious entrepreneur, then you may also make a bet on your future earnings. To get some funds advance. Websites like Thrust Fund now offer business owners an opportunity to pledge. A percentage of their future lifetime earnings against funds upfront. However, you need to know that the enforceability and legality of such personal investment contracts are yet to be approved.
6. Find angel investors
While pitching to the angel investors, you have to be concise and also clear by avoiding any jargon. And always ready to present an exit strategy. The economic turmoil over the last several years had made it much complicated to get appropriate angel investors. At the first point, create a good profile of yourself and know your stuff to be explained well to them.
Along with these measures, you can try to secure an SBA loan from the Small Business Administration. And raise money through your friends, family, and well-wishers.