If you want to raise capital for your business, you aren’t alone. In 2016, approximately 73% of small businesses used some type of financing. Even though money doesn’t grow on trees, there are several ways to seek funding for a business. Keep reading to learn about some of the most common and popular capital raising ventures.
Crowdfunding
There are more than a few crowdfunding success stories. With the right pitch and a great product, you can be the next one. For example, in 2013, Formlabs, which is a company that makes 3D printers raised over $3 million through Kickstarter.
With crowdfunding, you can connect with like-minded people who you wouldn’t engage with usually. This can help you determine how much interest there is about your product and find out what resonates with people and what doesn’t.
Apply for a Loan
While technology has created new ways for you to raise capital, there are traditional financing products that are still the main way for small businesses to fund their operations. In fact, according to the SBA, approximately 75% of financing for a new business comes from a traditional business loan Birmingham.
Usually, the small business loans that have the most favorable terms and rates will be SBA loans. To be approved for this financing, you have to meet certain requirements, including being in business for two or more years, strong revenues, and good credit.
When it comes to raising capital for your business, you have a few options to choose from. The key is to find the option that best suits the needs of your business to ensure that you can continue to grow and thrive. If you need more information about business loans or other methods of getting capital, it’s a good idea to reach out to someone with experience in the industry.
