3 Ways to Get Startup Business Financing

It’s not an easy task to leverage enough money to get a business going from the very beginning, in the form of a startup full of excitement and lacking funds. Fortunately, the modern world turned the long process of financing into a smooth and quick process, which can raise thousands to finance a new startup. For those among these entrepreneurs in need of cash to start off, learn three very effective ways to get startup business financing in your locality.

Top 3 Options for Financing a Startup Business

1. Business Accelerators/Incubators

Why Should I Pick This Option?

Most of the costs of new startups might arise from expenses with the premises and resources that every company needs, in order to function properly. As the name itself states, the companies called Business Incubators were created to allow startup owners to get their company running without a massive initial investment.

This option should last a couple of years, allowing the business plan and the important matters of the new product or service to be developed, before entering the real disclosure phase. Then, the premises are no longer offered to the startup, which should already be capable of establishing itself.

The financing part comes when the Business Incubator is also a Business Accelerator, not only offering its facilities for the startup to work, but also applying its money to fund the idea. Most of the time, it’s similar to Venture Capital, as they usually keep a stake in the company. This sort of deal usually lasts a few months, mainly up to four, and should be enough for those who just need a push towards being financially independent.
Find now the best accelerators to host your business.

 2. Patient Capital

Why Should I Pick This Option?

This source of money for a startup business works better for those in need of a low amount of investment. It’s also called “love money” and is usually provided by those who don’t expect the first returns soon, like close friends, relatives and a spouse. Although many people don’t consider this option for a wide variety of reasons, it may also be one of the safest, especially if the startup isn’t to start profiting from the beginning.

It will greatly vary, and one should know the consequences of borrowing money from people close to them. All sort of precautions may be taken during this kind of loan, including those of legal respect, such as paying taxes in accordance to the applicable law.

For those who want some sort of warranty, it’s possible to seek a local attorney, even for this kind of transaction, in order to make a safer deal.

The statistics show that patient capital is most of the time a good idea. In order to be in the good part of this proportion, take a look at the article in the here, for a bona fide relation with your source of love money.

3. Government Money

Why Should I Pick This Option?

Many people have no idea how important their startup might be for the local community, or to a greater amount of people, and often appeal to expensive ways of financing their startup. The government, from the federal to the municipality level, is always taking under its wings businesses that help the community in some way.
For dealing with such a strong administrative structure, the demands may be much greater than those related to getting a bank loan, for example. Even so, those willing to take the necessary time and that believe in their idea to be worthy of a government grant, may proceed to their forms in order to get some subsidies.
The best source we could find on how to get yourself a piece of this good source of funds was this article, with many different kinds of grants.

Final Considerations

There is no easy way to raise a large amount of money and get financing for your startup business in the blink of an eye. However, we brought you the best options, most of which many people don’t consider for thinking they won’t work, that might be just perfect to get the cash you need.

Each one of the three applies to all sort of different situations, which was a concern of ours, in order to give an opportunity to every reader with a good startup idea. Check the links with further information and accelerate towards your dream business.

Recommended for you:Indian fintech report 2019

Author: JonZacharias

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