Angel investors
Do you know that there are hundreds and thousands of private investors in the US? These investors fund some thirty thousand small companies every single year and so comes the name “Angel Investors.” They may not be visible but they are actually there, offering some money, giving you the leverage or more appropriately, some wings, to start your business. They often times invest in groups so most of the time they only have a piece of the deal. A good thing with this kind of funding is that it is not just money that you benefit from. You gain networks as well. These private investors also are more patient with their investments. Sadly, it is quite hard to find, like a real angel in disguise, but nonetheless, a worthy option for some good funding.
Venture capitalists
If your business is a fast growing business, then getting some funding from venture capitalists would be a good option. If you have proof that you have money flowing in your start up and you have a solid path ahead and there is a possibility of going public, these capitalists are good options. Of course, nowadays, these capitalists who first invested on dot com industries that failed are much more strict nowadays. Also, their investments are quite limited since they want quick profits for their investments. It is very stringent but with a quarter of a million to tens in millions of dollars, that can help boost the business.
Personal savings
You may also look at home for some funding. If you have some money that you set aside, you can use this instead of borrowing money and paying incredibly high interest rates. You can also do this by selling some stuff that you think will be worth something. This is great if you are starting a small business and if you have a stash of items that you can actually sell. It is important that you look into the options that are available around the house. One caveat of this is that you are depleting money that could be used for investments like retirement funds or for emergencies therefore, you have to make sure that you only take what you think your own money can cover.
Money brokers
These people take the prospectus of the person requiring some funding and they circulate it to different investors as well as lenders. A retainer fee is necessary if you deal with a broker but the sad thing is that there are no guarantees that you could actually get the money. You should identify the good from the bad ones. Always check their history if they are capable of really securing a successful deal with clients and if the loaning procedures actually result to success. You do not want to make a deal with a person who has not made a decent work for the price that you will pay.
Banks
Of course, we have the banks to provide us some funding for our small business. In fact, they may even be a better and less expensive option to get some business capital. You just need to prove that you have assets and a good credit rating so that you can make a loan.
