Whether you’re starting a new business or have an existing one and want to expand, you’ll need to finance it somehow whether it be from your own pocket or securing other traditional forms of financing.
Investing in your business to drive growth is crucial. Thankfully for small business owners, there are a number of finance options available for you to consider. These include low interest loans, business grants and (an increasingly popular option) crowd-funding. If you’re looking to grow your business and need extra finance to do it, here’s a little more information about your options.
A business loan is probably the first option to consider. Taking out a business loan with a reputable company has a number of advantages. Most importantly, they will provide you with excellent credit advice on choosing the loan that’s right for your needs. Non-bank lenders such as Liberty Financial understand the unique challenges that accompany a business start-up or expansion and can therefore offer a wide range of flexible loan solutions tailored to your business’ requirements.
There are many organisations that can offer your business a range of grant funding options. The amount of funding available can depend on the type of business and where it is based, so you’ll have to look into what’s available to you. The Australian Government has specialised departments that focus on supporting small business enterprises and improving their opportunities for growth, so make sure that you’re aware of those departments and how they can help you. Grant funding is generally not repayable so check your local government’s website to see what you may be eligible for.
An increasingly popular and low-cost way of financing a new business is crowd-funding. Crowd-funding works by inviting a large number of people to invest a small amount of money in your business. Equity crowd-funding may require you to offer shares in your company to an individual investor in return for capital. The disadvantage of this is that you must give up a small amount of ownership of the business however, with an industry now worth in excess of $5 billion, you may want to consider this option.
The above suggestions are just a handful of ways that you can raise money cost effectively for your business. Whether you need funds for a business start-up or for general expansion, it need not be a lack of finance that prevents your business from moving forward.