Business Startup: 3 Ways to Finance Your New Business Venture

by on March 9th, 2015
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Has the bank turned you down for your small business loan? If you have a small business idea in many cases this loan denial may seem like the end of your dream, but it may not be. In the recent past a person could tap their home equity, retirement or friends and family for the money, but those sources, in many cases, are just not available.

Here are a few places you can go to get money for your business start up:

Peer-to-peer lenders – Prosper.com and LendingClub.com are two of the most popular. These services usually recommend you have a credit score of 640-660 and higher. The interest rates can range from 6% to 35% depending on the amount and length of the loan and your credit history. The important thing to remember is that this is a personal loan so you will be personally liable if you default.

Crowdfunding – If you have a business idea that could draw investors, but it’s not big enough to attract the big money venture capitalists. Companies like Microventures.com help small business start-ups connect with investors. With MicroVentures there is a nominal fee to get started and you will need a business plan. There are other crowdfunding sites where less money or information is required.

Sell or Pawn Your Stuff - Many people have things they don’t use. Some of those things of course have more value than others. If you have luxury items, jewelry or electronics you can easily make money by selling this items on eBay or pawning them with an online pawn service like pawngo . The benefit of using the pawn service is that you can eventually get your belongings back.

These services work best for people looking to borrow $25,000 to $35,000. If you need more you can use a combination of these services to get your business off the ground. Never give up on your dream. As the saying goes, if at first you don’t succeed try, try again, and in the case of financing your business, that’s the best advice you can get.


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