If you have a great startup business idea and are ready to hit the ground running, there may be only one thing that’s stopping you – financing. Getting over the initial hurdle of securing financing to run a successful business and continuing to develop innovative ideas is one of the biggest challenges modern-day business owners face.
Although it may sound like a simple concept, there are several different options to get you to your business goals that are difficult to narrow down. Plus, you’ll need to dive into how much you’ll need, how much you’ll qualify for, and your plan to pay the loan back. Follow these tips to find the right financing solutions for your business:
Find a Funding Partner
If you’re busy managing other aspects of your business, finding a trustworthy funding partner is probably the best solution. They take care of the funding process with little to no management and input needed. Funding partners also take the time to get to know you and your business goals and adjust your financial plans accordingly.
Try reaching out to the team at Commercial Funding Partners to receive a free quote today. Their expert consultants have experience in a variety of industries including agriculture, tech, manufacturing, healthcare and more. Their team is also transparent and delivers the most important information about your funding process first to help you make the right decision.
Conduct Personal Research
With there being so many business funding options in the space, it’s important to conduct personal research before making any long-term decisions.
Be sure to understand the difference between bank loans, SBA loans, crowdfunding and more. If you’d like to go a non-traditional route with a technique like crowdfunding, just know there are drawbacks. Your company has to be intriguing enough to attract potential investors and you must offer investors a stake in the company which comes with strict security laws.
Compare Interesting Rates
No matter what type of funding you choose, finding the best interest rate is crucial in the long term. For example, bank loans have an average interest rate of about 3% to 6% with a repayment period of five to 10 years while online term loans have an interest rate of 7% to 30% with a repayment period of three months to five years, according to Fundera.
Be selective in what you choose and be sure to make smart decisions that don’t take a ding at your credit score. You’ve got this!